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Is the price of bitcoin ever going to zero?


Can Bitcoin Price Ever Drop To Zero?

As one of the bullish arguments before its recent crash, Bitcoin (BTC) claimed that the asset had not reached its all-time high before the halving had been one of the bullish arguments.

The price eventually fell below $19,000, the high before halving in 2020, by the end of the year. Furthermore, questions have been raised as to whether the price of bitcoin could ever fall below zero and have a negative value, as happened during the height of the pandemic in the 1960s when it was at its peak.

There is no doubt that the incident spiraled existential fears, but it has also questioned the validity of existential fears in the first place. There is almost no way that it is even possible for the price of Bitcoin to fall to zero shortly, according to cryptocurrency research analysts.

Currently, no bureaucracy interferes with the operation of the global supply chain. Oil supplies are almost limitless, which can decrease oil prices as people are less willing to pay a higher fee for it due to the unlimited supply." It is known that the Commodities Exchange Act of the United States stipulates that a digital currency, including Bitcoin, has a technical design that prevents it from becoming zero.

When the Coronavirus pandemic peaked in 2020, oil prices in the United States fell to a record low of minus $37 per barrel. Consequently, oil producers were forced to pay buyers to dispose of their commodities due to concerns about the shortage of storage capacity. A lockdown kept individuals confined to their homes, resulting in a decrease in oil demand.

The bitcoin price has declined dramatically over the past few weeks, prompting traders and miners to sell their bitcoin holdings to avoid huge losses. As with Luna, there is a possibility that an even more severe collapse will occur.

After reaching a peak of $69,000 in November 2021, bitcoin prices declined by 70%. About 18 months ago, BTC had rallied back to $20,400 after hitting a low of approximately $17,800. The amount of bitcoin minted in 2020 was reduced by half by an event known as a "halving," which lowered the price below the high reached in 2020.

The rising inflation and a growing number of interest rate hikes by the Federal Reserve are among the macroeconomic factors contributing to the havoc in the crypto market. Terra's contagion has also resulted in solvency problems for several crypto heavyweights, including hedge funds Three Arrows Capital (3AC), lenders Celsius and Babel Finance.

Many people try to relate the value of cryptocurrencies with that of oil. However, according to experts, bitcoin price reversals can never be compared with oil price changes. This is because traders and investors are not required to pay a fee for holding bitcoins.

There has been a lot of speculation around the crypto market over the past few years. Still, market analysts say that it will never fall below zero as long as the market remains speculative. As they explained, paying someone to remove your coins or tokens from your account will not be necessary.

Brian Gallagher, the co-founder of Web3 infrastructure outfit Patricia Blockchain Foundation, believes that Bitcoin will not drop below zero due to a limited supply. He explained that companies that overleveraged may fall into debt, become bankrupt, and be liquidated to pay off their creditors.

Though Bitcoin has experienced much turbulence since its introduction more than 13 years ago, its fundamental technology still holds up.

Following the collapse of the Terra blockchain in May, cryptocurrency markets have been in a state of uncertainty. In the past six months, the value of cryptocurrencies has fallen by more than $2 trillion due to concerns regarding their long-term viability.

But given its performance over the last several years, it is clear that Bitcoin is an important new financial tool that has long-term potential for use and value. The president of Matrix, Vasja Zupan is of the opinion that Bitcoin's recovery will be even quicker once global markets stabilize.

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#FeaturedByPatriciaBlockchainFoundation

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