- Bitcoin has become the largest cryptocurrency in the world, with a market capitalization of over $1 trillion.
- If Bitcoin vanished it would be catastrophic for the financial sector.
- While the odds of Bitcoin disappearing are really slim, it could happen in several ways.
- The shutting down of the internet, a global declaration making Bitcoin illegal, and the destruction of nodes and miners are some ways in which the cryptocurrency could cease to exist.
At this point, Bitcoin has become engraved in our collective consciousness. It serves as a valuable alternative to the traditional, centralized financial system, with millions of users around the world adopting it for transactions.
The increasing adoption of Bitcoin and institutional investments from large corporations have accounted for the vast increase in its value, with the cryptocurrency reaching its latest all-time high of $61,683 and surpassing the $1 trillion threshold.
But what if we woke up one day and Bitcoin had simply ceased to exist? While the possibility of this event happening is almost non-existent, it is interesting to explore the topic.
Bitcoin Simply Vanishes?
Imagine waking up to find all the Bitcoin in your wallet had vanished into thin air. It’s a harrowing thing to think of but imagine the scenario. You turn on the television, and it is rife with reports of all the Bitcoin in the world ceasing to exist.
If Bitcoin vanished, it would have grave implications for the financial sector, and we would see scenes like those from the financial crisis of 2008. This is because of the huge amount of money that very many people have invested in the cryptocurrency.
At the moment, Bitcoin’s market capitalization is around $1 trillion, and it is currently more valuable than Facebook (NASDAQ:FB), Alibaba (NYSE:BABA), Berkshire Hathaway (NYSE:BRKa), and Tencent. This comparison shows how huge Bitcoin has become in today’s world.
Bitcoin ceasing to exist would have grave implications for the value of all other cryptocurrencies. It has been proven that when Bitcoin undergoes a major price rally, other cryptocurrencies ride the wave of its growth and also experience an increase in their values.
In the unlikely event of Bitcoin ceasing to exist, the value of all other cryptocurrencies would crash to astonishing new lows, potentially rendering them virtually useless.
If Bitcoin disappeared, millions of users would lose their holdings, running into millions of dollars. The value of corporations such as Tesla (NASDAQ:TSLA) and MicroStrategy, which have purchased large amounts of Bitcoins, would also fall to dizzying lows, and some could be forced to file for bankruptcy.
On the Flipside
- Deutsche Bank (DE:DBKGn) opined in a recent report that Bitcoin is now “too important to be ignored.”
- This comes after Bitcoin peaked at $61,683, surpassing the $1 trillion market cap threshold.
- However, the bank predicts high volatility for Bitcoin due to its lack of liquidity.
How Could Bitcoin Cease to Exist?
At the moment, it is almost impossible for Bitcoin to simply vanish because of the largely decentralized and borderless nature of the cryptocurrency.
The absence of a third-party regulator, and the secure nature of the network, makes it impossible for Bitcoin to be wiped out on a whim.
One foreseeable way for Bitcoin to disappear is the shutting down of the entire internet. However, this would be very difficult because its creators designed it to not have a simple kill switch, making it almost impossible to shut down.
Alternatively, the destruction of all nodes and miners could result in the disappearance of Bitcoin but before that could happen, the nodes could take cover behind an impregnable wall of VPNs.
Even if governments were to pass legislation banning Bitcoin, its anonymous and decentralized nature would ensure its continued existence. Bitcoin has been banned in some countries, yet their citizens still continue to buy and sell the cryptocurrency.
