The One Thing That Could Kill Bitcoin (2024)

FAQs

What could kill Bitcoin? ›

Under really extreme circ*mstances, there are few scenarios that could spell the end of Bitcoin as we know it. For instance, a massive global power outage shutting down all communications and the internet around the globe could prevent nodes in the network from contacting each other, causing the system to fail.

In its current form, Bitcoin presents three challenges to government authority: it cannot be regulated, criminals use it, and it can help citizens circumvent capital controls.

Ethereum is currently the second largest crypto asset by market capitalisation at around $425 billion. This remains a long way behind bitcoin's total value of around $1.3 trillion, as of March 2024.

A reasonable assumption that Bitcoin could hypothetically reach the null state of it's value is worth the thought. Even-though such an event is very less likely to take place, there are some factors that could theoretically lead to Bitcoin price crashing to zero.

Cryptocurrencies are still largely unregulated

If a platform that exchanges or holds your crypto assets goes bankrupt, there's a risk you could lose all your capital. Similarly, your assets could be at risk if an exchange holding your crypto is hacked by criminals.

Shutting down the Bitcoin network would require shutting down the entire global internet and cutting all electricity. While it's technically possible to “hack" or take over the entire Bitcoin network, doing so would cost billions of dollars and require a massive coordinated effort involving global chip manufacturers.

Bitcoin is controlled by all Bitcoin users around the world. While developers are improving the software, they can't force a change in the Bitcoin protocol because all users are free to choose what software and version they use.

Bitcoin uses a decentralized system and a decentralized peer-to-peer ledger. It has the potential to become a globally accepted payment method and revolutionize people's access to finances and financial services. However, most governments do not control or recognize it, and central banks cannot influence it.

So sometimes, knowing how much BTC an individual has is unclear. What's for sure though, is Satoshi Nakamoto, the mystery genius behind Bitcoin, holds the keys to an enormous stash of over 1.1 million BTC. That's a mind-boggling amount, making Satoshi the biggest whale in the Bitcoin ocean.

Bitcoin was created by an anonymous person or group using the pseudonym Satoshi Nakamoto. Nakamoto published a whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System," outlining the concept of a decentralized digital currency.1 The true identity of Satoshi Nakamoto remains unknown to this day.

Is Bitcoin actually money? ›

Bitcoin (BTC) is a cryptocurrency (a virtual currency) designed to act as money and a form of payment outside the control of any one person, group, or entity. This removes the need for trusted third-party involvement (e.g., a mint or bank) in financial transactions.

With a strong development team and growing adoption, Cardano (ADA) has the potential to reach $1, offering a compelling investment opportunity for those looking to capitalize on the next big thing in blockchain technology.

Other virtual currencies, such as Ethereum, are helping to create decentralized financial (DeFi) systems. Some altcoins have been endorsed as having newer features than Bitcoin, such as the ability to handle more transactions per second or use different consensus algorithms.

Ethereum is the most valuable altcoin. In crypto lingo, that means it's an alternative to bitcoin. The leading altcoin's blockchain was the first to integrate smart contracts, or code designed to run decentralized applications. The ethereum network has more than 4,400 dApps.

Crypto is a volatile asset in general, prone to significant price swings. Some crypto crashes are because of systemic issues within crypto, such as the collapse of FTX in 2022. Other times, macroeconomic factors such as interest rates and inflation can push values down.

It is impossible to predict Bitcoin's price movements with certainty. Given the volatility of Bitcoin it is probable that the price will see a dramatic fall again at some point in the future that could be defined as a crash.

Given the highly volatile nature of the crypto market, various possibilities exist in the realm of cryptocurrencies, including the potential for Ethereum to surpass Bitcoin. As witnessed in 2021, ETH outperformed BTC, gaining nearly 400% compared to Bitcoin's 66%.