Now, let’s be clear on one thing; this question pops up in every trader’s head once in a while. Even some non-crypto users ask what would become of the cryptocurrency market in general if BTC falls to zero. Although some crypto users were not interested in getting answers mainly because the big bull never appeared to be going South, but when the bearish trend intensified in November and BTC hit a trading price of $3200, a ton of traders were curious to know what would happen to their funds, exchanges, investors and the technology of digital currency if the token fully bottomed.
Will trading still continue? Yes. Altcoins will not cease to exist because BTC bottomed, in fact, traders who believe in coins like Ether and Ripple XRP to be the new BTC will continue in trading. So the effects of BTCs downfall will not be the end of cryptocurrencies, however, the effects of BTCs downfall will largely affect the already volatile structure of the cryptocurrency market.
Reduction in adaptation
Currently, BTCs market cap is a total of $67.53 billion and 1 BTC is currently valued at $3869.74. To say that BTC loses its entire value is to say that traders cease to trade for days and months, it is to say that traders have boycotted the coin entirely, which makes the thought of it even more impossible.
But assuming this was to happen, assuming a coin with an outstanding market cap of $67 billion which has been in the running for 10 years drops to zero, the effects will hit beyond the crypto market. Seeing that big brands ranging from luxury to tech has made BTC their major means for purchasing means the value placed on BTC goes beyond its current trading price, so for the big bull to fall, it will take a lot more than a pump in other altcoins to convince the already skeptical public that cryptocurrency is inherently valuable.
Lower investment rate
Already, prominent economists have canceled BTC. Warren Buffett even stated that crypto is nothing but a gamble, noting that profit is only dependent on the arrival of new traders. This in itself has birthed numerous naysayers who compare BTC to Ponzi schemes.
Seeing that regulatory is also a huge work in progress, the crypto technology is still in the “trial and error” stage. And the downfall of a coin as valuable as BTC will close many doors to sizeable investments. If we consider the fact that institutional investors withdrew more than half of their investments due to the bearish outpour, the situation would be a lot worse if BTC were to lose its entire value. Not only with academic institutional adaptation cease, but newer investments from promising sectors will also become stagnant.
Conclusion: The effects of BTCs downfall goes beyond the cryptocurrency market. With social and academic institutions showing great interest in crypto, all coins remain valuable for the growth of the market.
The post How will other Cryptocurrencies be Affected if Bitcoin (BTC) drops to Zero? appeared first on ZyCrypto.