Will Bitcoin Crash In the future?
Over the years, Bitcoin detractors have continuously fronted the theory that the world’s #1 cryptocurrency would crash to zero in the fullness of time. However, as the world’s biggest crypto by market capitalization became increasingly popular over the last few years as its price hit new records in the previous year, the debate about Bitcoin ever crashing to zero was silently subsiding. But the anti Bitcoin sentiments are emerging once again as the crypto coin is facing one of its fastest bearish runs ever in recent years.
Bitcoin had hit a high of $65,000 in April. The price has plummeted by 50% in less than a week, sending shockwaves among investors. The trend has prompted the question, will Bitcoin crash completely to zero value? Despite this record quick bearish run, Bitcoin hitting zero is a near impossibility. Read on to understand why.
Bitcoin has been on the upward trend since it came into existence slightly over a decade ago. We all remember that Bitcoin has grown from a near price of zero to over $60,000 per Bitcoin. The first-ever functional cryptocurrency is now the largest in the world. In just a short lifespan has become one of the most profitable assets in the history of virtual assets. Despite this enormous growth, most anti Bitcoin advocates have continuously argued that the cryptocurrency crashing to zero is just a matter of time. For example, Berkshire Hathaway’s Warren Buffet recently argued that all cryptocurrencies are worthless and do not see any future in them. Their central argument is that Bitcoin is not tied to any asset and based on speculation.
Bitcoin will Not Crash in the future
Despite the scary volatility, we’ve seen increasing interest in Bitcoin by institutional investors. Square, MicroStrategy, Aker ASA, and Tesla are some of the companies that have bought Bitcoin, although the latter’s supposed withdrawal is what contributed to the crypto’s bearish run. Some companies are also beginning to accept Bitcoin as currency in exchange for goods and services. PayPal, Microsoft, JPMorgan, Goldman Sachs, BMW, etc., are some of the major companies that have included Bitcoin as a medium of exchange on their platforms. It’s these institutional investors that have prompted the crypto’s best Bull Run in years. Moreover, people begin to see Bitcoin as a store of value just like Gold and therefore see the cryptocurrency as one that can shield them against inflation.
The current pattern, hyper volatility, is not something new for Bitcoin and other cryptocurrencies. We have repeatedly witnessed this pattern since the emergence of Bitcoin. It can only mean that the crypto market is simply maturing and will achieve its intended purpose as a powerful medium of exchange. That is, the current fall is just a short-term correction in a booming market, and in the fullness of time, it will stabilize and present the desired value.
Final thoughts
Read More:
