Cash’s worth is predicated on the shared delusion of tens of millions that it’s useful. Bitcoin’s worth may “go to zero”, when most people that right this moment consider it’s useful cease believing that.
Folks might cease believing that Bitcoin has worth if their authorities bans it. Whereas one authorities bans it, an oppositional group or one other authorities might endorse it. Some folks may suppose that when a authorities bans it, this must be understood as the federal government perceiving it as a risk and assign extra worth to it. So even when “all governments ban it on the identical time”, it’d proceed to take pleasure in some worth.
If a catastrophic vulnerability had been found within the Bitcoin protocol which may shake some folks’s perception within the worth of Bitcoin. It may additionally increase different folks’s confidence if the issue is resolved rapidly.
We’ve got seen a number of different cryptocurrencies have catastrophic failures, and but, their worth has not collapsed to zero. For some, the notoriety even elevated the trade fee at the very least quickly.
Even when many lose confidence in Bitcoin, it’d nonetheless clear up points for a smaller group or retain some unshaken supporters. In the long run, worth of cash is a person notion and even when many change their perceptions, there could be some that buck the pattern. There may be an previous adage amongst Bitcoiners responding to your very query within the vein of “Bitcoin can’t go to zero, as a result of I’d purchase all of them at $0.01.”, to which one other responds “Oh, however I might purchase all of them at $0.02”.
So, whereas it’s potential for the trade fee of Bitcoin to drop precipitously, it appears unlikely to go all the way in which to zero.