Why Bitcoin Will Return to Zero (Why Bitcoin)

Why will Bitcoin return to zero? On December 17, 2017, Coinbase, one of the largest cryptocurrency exchanges in the world, experienced a system crash due to a contract vulnerability, causing its price to plummet to a low of below $2,000, and thus began its journey to death.

However, today, with the price plummeting, the market sentiment has changed. The BTC price once fell from $9,000 to around $8,000, and at its lowest, it approached around $10,000, but it has now regained its original high position of more than triple. This has surprised many investors.

So why won’t the price of Bitcoin return to $10 million? Why is that? Let’s analyze the reasons:

1. Bitcoin itself is a scam with no value support;

2. Bitcoin is issued by individuals, so it is not necessarily the most profitable investment;

3. Bitcoin transaction fees are high, and due to high usage, transfers and other operations are impossible;

4. There is a “black box” for all transactions in the Bitcoin network. If malicious attacks or other malicious activities occur, a large amount of funds will flow into the platform. In extreme cases, there will be serious security incidents. When some form of theft causes asset loss or economic interests damage, this mechanism will also affect user behavior. Finally, Bitcoin community members believe that this “decentralized” concept is unrealistic. Therefore, many people think that Bitcoin is just a speculative tool and not a real investment product because its design purpose is to make money but has not received enough attention. And the core technology behind Bitcoin may not have inherent economic benefits but is instead a fallacy.

So why will Bitcoin go back to zero? First of all, to understand the birth of Bitcoin, there are actually several basic elements: anonymity, privacy, and scalability. Bitcoin, as an early version of distributed digital ledger technology, can help developers quickly build and manage smart contracts and run complex applications, while also allowing high participation of ordinary users. However, most mainstream blockchain-based networks are still in their infancy, and even some people in the Bitcoin ecosystem are not aware that these basic concepts have already emerged, including the consensus layer, protocol layer, and sharding technology. In addition, there are some key points that need to be addressed: 1. The speed and security of verifying transactions. For many people, the cost of trust is very high, especially for those who want to obtain more information, such as the technology mentioned in the Bitcoin whitepaper, they usually spend a lot of time proving it to achieve instant access to all nodes.

Why Bitcoin

Bitcoin is an important concept in blockchain technology and one of the meanings for ordinary people to understand it and use it. It is a virtual asset system composed of a group of randomly generated encrypted cryptocurrencies, which allows anyone to trade without the intervention of a central authority.

In simple terms: if you put Bitcoin on your computer, you can know what this coin is; if you can find this chart on your phone or laptop, it is equivalent to having a smart TV or a computer that can use your money to buy a car, buy goods, or even exchange for an iPhone 12… This is the fundamental of Bitcoin.

Therefore, Bitcoin, as an alternative to a peer-to-peer electronic cash system, is theoretically a better choice than Bitcoin. Bitcoin was born on October 1, 2012, as a decentralized electronic cash system developed by Satoshi Nakamoto. In July 2009, Satoshi Nakamoto invented the first Bitcoin client-bitcoin.org. On February 28, 2010, a new website called “Bitcoin” was registered in the Cayman Islands and a whitepaper was released, which mentioned, “When Bitcoin becomes like gold, it will produce many other value storage methods.” In addition, he also added that “with this new method, people can store their wealth in these things without relying on third-party intermediaries.”

And now more and more people are paying attention to this project for a simple reason:

1. Bitcoin is synonymous with anonymity. Although its initial design was for easy traceability, there are some problems: Due to the insecurity of the network and its vulnerability to attacks, users are easily taken advantage of and funds are entered into the platform by scammers.

2. Bitcoin has the characteristic of being non-falsifiable, and over time, new criminals may emerge, leading to more property losses for people.

3. “Bitcoin” is not true Bitcoin, but a unique code used to prove its existence. Not all data in Bitcoin can be confirmed. If you want to verify all the information of Bitcoin and whether they are correct and valid, you need to provide a trusted database to cryptographers.

4. The difference between “Bitcoin” and fiat currency is that Bitcoin does not have physical support and does not have sovereign credit endorsement. In other words, even if Bitcoin has legal status, it does not necessarily face the problem of inflation. The biggest flaw of Bitcoin is that because it cannot guarantee that everyone trusts Bitcoin, Bitcoin will not exist forever. But it also has other advantages: 1. Bitcoin is not entirely equivalent and can quickly solve many problems; 2. It is more suitable for payments than some needs in the real world; 3. It is applicable to various financial application scenarios and also has hedging functions.