In this article of QuantVan we want to see the posibilities that how can Bitcoin be destroyed.let’s see what are the logical reasons or posibilities that is beyond this theory.
Technically speaking, bitcoin will live as long as a handful of computers run the bitcoin software on a network. Only one extreme scenario would lead to annihilation. It is likely then that it will still be the top cryptocurrency in the coming years, unless the community destroys itself due to greed or carelessness.
reason 1 : a better replacement for Bitcoin
can be a better crypto instead of Bitcoin?
a better crypto means a crypto that has the same goal as bitcoin, profitable mining or has the low transaction fee in compare with bitcoin.
The discussion is not always about how to use it easiy but it should be economically investigated.
It must be good enough to overcome the impact of the bitcoin network and its investors.
well it has not happened yet. Moreover, due to political conditions and economic reasons.
(not a technical problem), a “global digital currency” under the auspices of the United Nations will not be introduced in the next five years.
regarding to the fact that if the mining costs increase,the mining profit would be decreased.
so This is a business with high security costs. bitcoin must find a way to reduce the general ledger, reducing the costs of maintaining security.
Reason 2 : Hack
one of the answers of How can Bitcoin be destroyed? is hack
For the first time the invasion is 51 % (Attack51 %)it is possible to destroy all protocol. In fact, just now, the only way to hack into the protocol is to hack into it. This is theoretically possible, but it is almost impossible in terms of executive.
The attack should be more than 51 % of the network’s calculations at the disposal of hacker. Because everyone can be miners, this is almost impossible, and on the other hand, the network destruction will not benefit the hacker.
Reason 3 : Bitcoin Market chaos
if the crypto startups are unsuccessful in giving the real value to cryptocurrencies , people slowly will loose their trust to this area. (something that happened during the fall of 2015 and 2016)
In this case, the growth of the market will slow down and reach a fixed value. It will also lose its position from an investment point ,resulting in a negative growth if the cryptos remain.
Reason 4 : suppression of governments
Because of the decentrilized nature of bitcoin, governments are unable to destroy the bitcoin. However, governments can control or restrict the use of it in their jurisdiction.
For example, they can block bank accounts of digital currency services firms or do not engage in any related business. But if only few countries stand in front of this story, the impact will be limited.
and they are finally forced to accept it because of the international level.
In addition, the bitcoin in Japan is legal. If the United States, the European Union, Britain and China jointly banned digital currencies,it will cost them alot.
also read our other article about Bitcoin, here on QuantVan Academy: