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Agreed that in the long term Bitcoin will either add a few 0's, in terms of say USD/BTC price (and equiv gov fiat), or, it will go towards 0. But I think the 0 scenario will only happen if a massive exploitable flaw is found, or, if a clearly better replacement/successor (most likely another digital/crypto-currency) to Bitcoin comes along, and everybody clearly and can easily switchover to it. I'm not sure if Bitcoin is perfect. But I do think it's like the Internet was to a lot of older tech, but with respect to money. That says a lot about its potential and its niches. I know that as an engineer it's been frustrating for years, if not decades, being aware that money is essentially just a score, just bits of information, a number, and that moving money around is just like incrementing/decrementing two money fields in a database, but somehow the government banking and paper monetary systems seemed to make it so much more complex and slower and bureaucratic that in needed to be. (Also taxation has been made ridiculously over-complex, partly by malicious intent, I think, and partly and innocently by the momentum of the less tech available in an earlier age, the age before electronics, computers and the Internet.) In short, Bitcoin is one particular way of letting money be as simple as a shared distributed scoreboard, as just bits in a database. It's not perfect. But it's much closer to what money fundamentally is at its heart. |
What about something like this:
* A sufficiently large group of people decide for whatever reason to sell their Bitcoin.
* Prices drop.
* In response, tons of people start selling their Bitcoin.
* Positive feedback loop. Bitcoin loses almost all its value.
Since Bitcoin has no fundamental value, there's nothing to stop its price from plummeting. I think the above scenario is fairly probable.