Can crypto disappear or crash to zero one day? Questions young and old investors are asking after a huge crypto market fall. The fact is some digital currencies will crash and die out as some are scams. This happened with the token that came in the name of the movie Squid Game
Even after Will Smith slapped Chris Rock at the Oscars, a token called Will Smith Inu was birthed and it died in days.
Some of these crashes will be due to inflation, interest rates, or macroeconomic activities that influence people’s confidence in investing their money in riskier alternative assets. And the more investors sell out of their assets, the less the value of crypto goes. That is how it is made.
There is no sign that crypto will disappear anytime soon as long as it can be owned as an asset. But there are some legit points to consider in the talk about the dying or ‘killing’ of crypto. Let us look at them.
‘Bitcoin Must Be Buried’ – Can Crypto Disappear?
In 2013 – the very early days of crypto – a writer of a popular crypto blog wrote about why Bitcoin will disappear or must be killed. Though l see his points as valid, Bitcoin has evolved, and is it getting accepted by firms, nations, and more people than imagined. And since the power of cryptocurrency is much more in the hands of the investors, politicians will find it hard to clamp down than regulate.
According to Bryan Lynn, Bitcoin or cryptocurrency is to cash what crack is to marijuana – a more potent and addictive drug. Bitcoin has done a perfect job of replicating the most critical features of cash – anonymity, and irrevocability.
Crypto is a best potent method for engaging in tax evasion, illegal activities such as terrorism, and money laundering than cash ever was. In fact, as of 2020, more than $ 10 billion worth of crypto has been used in illicit activities worldwide. That is just for those who left their prints and got tracked by the FBI.
Banks are highly regulated, we always watch how criminals struggle to transport cash in movies. Holding bank managers at gunpoint to approve transactions or transport chunks of money in bags, car trunks, etc. With crypto, it is peer-to-peer. No one is mediating, as soon the two parties involved are settled on the deal, cash is transferred with no oversight of any central authority.
This is to say, a drug dealer can buy tonnes of drugs and pay easily over billions in a minute with bitcoins, with no trace to the buyer or seller, only the transaction can be traced.
Putting all other bad reasons why crypto is an aid to illegality, tax invasion, and money laundering are what every government will stand up to. Though taxing is not the only means government makes money, we can agree more than 30% of every country’s revenue comes from taxes, and if crypto will cut this down, then the remaining will spread to other kinds of stuff.
Sadly, I am not sure politicians can ban cryptocurrency, they can only regulate the price of these digital assets. Banning or killing crypto will not only affect the people but also larger businesses that even have hands in the manning of some of these governments.
Instances When Crypto Was Predicted Dead – Can Crypto Disappear?
There is this blog [ bitcoinisdead[dot]org] that has been dutifully putting together ‘BTC obituaries’ since the dawn of digital currencies, where major news outlet predicts the end of crypto. But on all occasions compiled so far, huge crypto dips are followed by new all-time highs after months or years, rendering their predictions void.
Still, can crypto disappear? as l said at the beginning of this article, some digital currencies will crash and die. Let us look at the Terra. With the collapse of TerraLabs Forms, a whopping $40 billion was wiped out of the crypto market. This proves that even the biggest crypto can disappear in a matter of weeks or months.
That was when Luna lost 99.9% of its value – From $119 to less than a cent. But for those who believe in Bitcoin ONLY, this was a point of vindication. They always argue that altcoins are not worth it.
Samson Mow, the CEO of Jan3 Bitcoin technology also told currency.com that ‘Crypto could disappear forever because crypto is just centralized projects creating tokens and coins at will. There are over 20,000 crypto projects now and most are pointless, however, BITCOIN will not go away because it is very decentralized and it is very much in demand as a replacement for legacy money for individuals, corporations, and states’ He added.
This has somehow cleared the long argument that there is a clear difference between crypto and Bitcoin and as such, the two should not be compared.
Now, if you want to ask the question ‘can crypto disappear’? be ready to have answers depending on who the answer is coming from – an investor or a research analyst and critic. From these two you will get ‘No’ and ‘Likely’ respectively.