Even people who think negatively about cryptocurrencies are curious about the future of this market and next-generation financial technologies. If we consider Bitcoin's driving power in the entire cryptocurrency market, we understand the special attention people have towards it.
Bitcoin, which exceeded the $ 20,000 threshold with its rise in January 2018 , then rapidly lost value, but started to rise after the halving in May 2020 . At the beginning of 2021, it exceeded the level of 40 thousand dollars . Despite the ensuing decline, it draws attention as the most profitable crypto currency in the long term. But for those who are a bit far from the subject, the "What if Bitcoin goes to zero?" his concern continues.
First, let's take a closer look at how much Bitcoin holds in the cryptocurrency market:
When the total market volume of all cryptocurrencies increased to $ 835 billion in January 2018, Bitcoin's market volume alone was about $ 300 billion ( 35% ). With the critical drop in 2018, the total market volume was $ 130 billion, while Bitcoin alone was $ 67 billion of this volume ( 51% ). In its rise in 2021, Bitcoin's share in the total market volume reaching $ 1 trillion 67 billion increased to $ 711 billion ( 72% ). After the depreciation in 2021, Bitcoin occupies 67 % of the market volume .
The most important conclusion that can be drawn here is that Bitcoin has an increasing weight among all cryptocurrencies, reinforcing its position in the market. That's why, although it is natural for Bitcoin to lose value, the probability of falling to $ 0 is getting better.
Well, Bitcoin suddenly ceased to be digital gold, suddenly it fell sharply. So what will happen to other cryptocurrencies in this case?
Think of almost all cryptocurrencies, including Bitcoin, traded in the markets as trees. You are in a virtual national park with the sign "Crypto Money Forest" . Trees grow the more you water, the more fruit they bear. If not watered there is a risk of rotting and extinction, just as it really is. Bitcoin is the biggest tree in this virtual forest. The probability we are considering is that he will die one day without water.
Now consider this: If the largest tree in a forest dies, will the forest all disappear? No, other trees take its place. Actually, cryptocurrencies work the same way, because it is based on human behavior, which is something natural . The "water" in this example story refers to the money that investors transfer to the system. When people feed the forest well, they benefit not only from the oxygen released but also from the ecosystem created by the forest .
According to most market analysts and experts, in a scenario where Bitcoin disappears, units like Ethereum and Ripple will become the new masters of the forest. When you look at the world economic history, you will see that the biggest tree is constantly changing. Just as the currency of the Roman Empire dominated the world market in ancient times, while Asian currencies were once the largest tree , and today the dollar was the largest tree .
The only thing that changes our perceptions of value is that cryptocurrency has no physical equivalent. This situation naturally meets, digital literacy levels as the number of individuals of high, these individuals will be among the largest financial options for the future crypto coins begin to have a say in the world economy. Perhaps they will be the king of the jungle.
So why is the situation of Bitcoin so curious?
Bitcoin resembles monumental trees that have been living for thousands of years, with their short life and size. Memorial trees in national parks always have more visitors than people who water them. You go to a national park, see the oldest tree, take a picture of it, and know superficially what it is. Other trees continue to grow during this time, but no one else visits but the people who water them. As always, what happened to Bitcoin today can actually be described as such.
How does Bitcoin fall to $ 0?
All investors must suddenly leave the Bitcoin ecosystem, all miners have to shut down their systems, which is a near impossible possibility. If you want to root that tree, you have to unplug the internet . The price of this brutality is not just Bitcoin; Nowadays the whole world, maybe all humanity pays. In short, even in the most brutal prospect, it is almost impossible for Bitcoin to fall to $ 0 (zero).
If Bitcoin investors exit the system, their effects go beyond the cryptocurrency markets. Nowadays, it is even possible to buy your house with Bitcoin. Imagine what we would have experienced if the Turkish lira was suddenly out of circulation ... If Bitcoin is suddenly reset, we can say that what comes to your mind will happen on a global scale. In such an environment, the new target of investors will be alternative cryptocurrencies with a total market volume close to Bitcoin .
One way or another, if Bitcoin is going to disappear someday, it will happen over time, not suddenly. It will leave its place to new trees, new cryptocurrencies. During this time, living creatures (new generation technologies) depending on it will diversify, scientific foundations will be laid, and perhaps a new economic order will emerge. Maybe Bitcoin will be like today's gold in this order .
Well-known economists eliminating Bitcoin:
Warren Buffett is one of the strongest investors in the world economy ever. He says that Bitcoin is nothing more than gambling. According to him, the fact that we only need investors to make a profit with Bitcoin limits Bitcoin. What if it is not just an investment but a medium of exchange like the money in our pocket? Buffett has some merit, but he only speaks for Bitcoin, what he says doesn't apply to some other cryptocurrencies. Perhaps we haven't even seen the most stable cryptocurrency to replace Bitcoin ...
We now know that the cryptocurrency markets that Bitcoin laid the foundations of are still in the "trial and error" phase, while Bitcoin is the first and most popular tool of this experiment. Also, the collapse of a valuable cryptocurrency like Bitcoin closes the door for big investments. Investments of companies, most of which we know well today, also collapse. If Bitcoin, with its current value of 67 billion dollars, disappears, maybe hundreds of billions of dollars will be breached. Nobody wants to roll into this breach.
If Bitcoin falls to $ 0, many promising new generation technology investments, namely the creatures living on that tree called Bitcoin, are also threatened:
Like the ecosystems in forests, most of those creatures that cannot find a new host tree die. In other words, it becomes difficult to transfer capital to innovative businesses and the development of blockchain-based technologies slows down. With the blockchain , which is described as a "revolution" against the global economic system that has caused crises over and over again and starved millions of people , nobody, including investors, would want such an effect. The creatures living on the trees and connected to the ecosystem in the forest are necessary for the continuity of the system as well as the trees themselves.