[Taklimakan Blog] Could Bitcoin Ever Reach Zero?
While this is highly unlikely (in the near future), it is technically possible for the price of bitcoin to drop to zero. Bitcoin has largely moved up and to the right for most of its existence, with its price rising from virtually zero to $60,000 in less than ten years. The original cryptocurrency is now one of the largest currencies in the world and has become one of the most profitable assets of all time in its short time.
Despite this growth, bitcoin’s detractors have long argued that it is only a matter of time before it drops to zero again. Former Bitcoin Cash supporter Calvin Eyre stated in July 2020 that Bitcoin is useless, and Berkshire Hathaway CEO Warren Buffett told CNBC that he considers all cryptocurrencies (including Bitcoin) to be useless. Buffett’s business partner Charlie Munger called Bitcoin “rat poison” and “poop.”
But there has been a flood of institutional investment in Bitcoin in recent months, with companies like MicroStrategy, Tesla, Square, and Aker ASA buying BTC for their corporate treasuries.
Meanwhile, bitcoin exchange products have boomed with the launch of the Canadian Purpose Bitcoin ETF, the first such product to be created in North America. These institutional investments are believed to have triggered Bitcoin’s current bullish rally, and this is seen as proof that the coin, which now has a market capitalization of more than a trillion dollars, is not going anywhere. But what does it actually take for Bitcoin to lose 100% of its value? It turns out a lot.