There is an extremely small chance that Bitcoin falls all the way to zero. For this to happen, nobody in the world will buy Bitcoin and cryptocurrencies will get replaced with a better technology.
Bitcoin’s price is determined by buyers and sellers using bid and ask prices.
When more people buy than sell, the price of Bitcoin increases.
When more people sell than buy, the price of Bitcoin decreases.
Bitcoin’s first pizza transaction gave BTC a real world value in terms of US dollars and since then Bitcoin has reached as high as $64,000 per coin.
Bitcoiners refer to BTC as “digital gold” and use it as a better store of value than traditional gold, silver, or any other fiat currency.
Bitcoin’s Fixed Supply Protects It from Total Collapse
Humans value scarce objects more than common things. The more supply there is of any asset or thing, the lower it’s value becomes.
As world governments continue printing more fiat currencies, it loses its value over time due to the unlimited supply.
Due to Bitcoin’s fixed supply of 21 million coins, many holders will always be willing to buy more Bitcoin because it’s scarce and valuable.
There will always be a market for Bitcoin even if a better technology comes along in the future.
21 million coins is the total max supply and that will never change because it’s written in Bitcoin’s original code.
Risk Factors: A Better Technology May Replace Bitcoin in the Future
While Bitcoin will always maintain some value, I don’t necessarily think it will go up in price forever.
Just as Bitcoin will replace fiat currencies, there may be a better currency that comes along in the future.
I refer to Bitcoin as the best 21st century form of money but something better could be created for the 22nd century.
That’s 80 years from now and outside our lifespans for the most part. Our kids and grandchildren may create something even better but I’d say Bitcoin will be the dominant global reserve currency up until 2100.