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Could Bitcoin go down, never to recover?

category: Crypto

Many have pondered the same question could Bitcoin go down, never to recover?

I was introduced to Bitcoin a few years ago and like many, I researched and investigated the concepts and technology. I immediately fell in love with the concept of crypto and the perceived freedom it brought. The article today is more of a speculative, hypothetical piece and a quick look into the possibilities that may contribute to the demise of Bitcoin.

Bitcoin is a digital asset that has been around for over a decade. It has seen a dramatic increase in value in recent years, and it is now (at the time of writing) worth over $30,000 per coin. However, some people believe that Bitcoin is only staying high because of the perception of value.

Ultimately, whether or not Bitcoin is only staying high because of the perception of value is a matter of opinion. There is no right or wrong answer, and the future of Bitcoin is uncertain. However, it is important to be aware of the risks involved before investing in Bitcoin.

It is quite possible to say that Bitcoin (and any other crypto) will at some point most likely crash and never recover should the following conditions be met.

Widespread loss of confidence in cryptocurrencies

If a major hack or fraud involving Bitcoin occurs, or if governments around the world crack down on cryptocurrencies. Recently the SEC (US Security and exchange commission) has begun to turn its attention to Bitcoin, raising speculation that there may be a change of designation for Bitcoin in the future.

If a lot of crypto investors start selling their Bitcoin, the price of Bitcoin will also likely go down. This is because there will be more sellers than buyers, which will drive the price down (simple supply and demand).

The extent to which the price of Bitcoin goes down will depend on a number of factors, including how many investors sell, how much Bitcoin they sell, and how much demand there is for Bitcoin from other investors.

Whales selling

Whales are large investors who can move the price of Bitcoin with their trades. If whales start selling Bitcoin, the price is likely to go down.

If a lot of investors made the decision to sell a large amount of Bitcoin, the price could go down significantly. This could lead to a panic sell-off, where even more investors sell their Bitcoin in fear of losing money. This could lead to a cascading effect, where the price of Bitcoin continues to go down until it reaches a point where it is no longer profitable for miners to mine Bitcoin.

Ultimately, the impact of a lot of crypto investors selling their Bitcoin on the price of Bitcoin is uncertain. It will depend on a number of factors, and it is impossible to say what will happen.

The news cycle.

If there is negative news about Bitcoin, such as a hack or a regulatory crackdown, the price of Bitcoin is likely to go down due to a lack of confidence. Notable Bitcoin figures within the crypto world have made predictions that Bitcoin will continue to grow, however, it's important to remember that the price of Bitcoin is volatile, and it can go up or down for a variety of reasons. Like any stock or share price, crypto can be affected by social perceptions which can have either a positive or negative effect on the price. 

The underlying technology behind Bitcoin may become obsolete

History dictates that nothing lasts forever. In that respect, neither will Bitcoin. Time moves on and technology improves at an exponential rate, so as technology advances and newer, more efficient blockchain technology is developed cryptocurrencies like Bitcoin may become undesirable due to their inability to keep up with demands. Many would comment that newer technologies such as XRP, XDC, XLM, QUANT, HBAR, and more within the current cryptocurrency arena are faster, cheaper, and more efficient than Bitcoin. 

Bitcoin may lose its appeal as a store of value

If inflation rises sharply, making Bitcoin less attractive as a hedge against inflation. Crypto technologies with real-world value are more likely to hold their true value than those that do not. Bitcoin however is not considered a utility token. A utility token is a type of cryptocurrency that is used to access a particular service or product on a blockchain network. Bitcoin, on the other hand, is a cryptocurrency that is designed to be a peer-to-peer electronic cash system.

It is important to remember that Bitcoin is still a relatively new asset, and its future is uncertain. It is possible that Bitcoin will overcome these challenges and continue to grow in value.

Ultimately, we will have to wait and see what the future brings. 

The information is based on the author's own research and opinions. The information is not guaranteed to be accurate or up-to-date. The author is not a financial advisor and is not qualified to give financial advice.

Please note that this page may contain affiliate links. This means that if you make a purchase through one of these links, I may receive a small commission at no extra cost to you. Thank you for your support!


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