Who could kill Bitcoin?

UNITED STATES, WASHINGTON (VOP TODAY NEWS) — It is difficult today to imagine the digital money market without its main currency. We get the impression that Bitcoin has already proved its consistency and that it will always exist, but that is not quite the case.

The offer is strictly limited by the number of coins, or 21 million Bitcoins. More than 80% have already been issued, and the last coin will be obtained approximately in 2140. At first glance, the first digital currency in the world still has at least 120 years of quiet existence. The reality is more complicated, writes the daily RBC

According to a study conducted by the company BitFlyer in several European countries, more than half of those surveyed believe that Bitcoin will disappear in the near future. Thus, 55% say that the world’s main digital currency will cease to exist by 2029 – without naming the reasons for the seemingly inevitable disappearance of Bitcoin. There are, however, dozens of theories about the possible causes of the death of the first cryptocurrency, absurd and unlikely or really possible.

– The bans of regulators and authorities –

A working group of the Indian government proposed in late July to introduce a total ban on cryptocurrencies in the country. Mining, storage, sale, transmission and issuance of digital coins could result in a fine of Rs 250 million (approximately $ 3.63 million) and a six-year prison sentence.

It is unclear at this time whether the bill will be passed by the authorities, but its entry into force could lower the value of cryptocurrency. However, there is doubt that this could lead to a complete collapse of the digital industry. Following the recent ban on Bitcoin purchases and sales in Iran, only small fluctuations in prices have been observed. The same trend was then recorded in Afghanistan, Morocco, Algeria,

In any case, the positions of Bitcoin could be considerably undermined by possible bans in countries that are influential in the cryptocurrency market , for example in America or China. A rally of all states against Bitcoin could be an even harder blow, but it seems unlikely given a large number of states favoring the digital industry. Moreover, bans often only serve the interest of users seeking increasingly complex ways of circumventing sanctions and laws.

– Piracy –

Bitcoin is based on the Proof-of-Work algorithm used to confirm transactions and create new blocks. A user with a larger computing capacity could find more blocks and therefore get higher pay. If more than half of the network’s capacity were in the same hands, it could compromise its operation.

The possibility of “51% attack” was mentioned in the white paper of the first cryptocurrency. Satoshi Nakamoto wrote that if the majority of CPU nodes were controlled by private miners, the chain would grow faster and outpace other block strings. In order to modify the data of the previous block and the operation of the other nodes, an attacker should deploy a lot of effort. In any case, the 51% attack remains in theory the most effective way to destroy Bitcoin.

Jimmy Song, developer of cryptocurrency projects, explained in January on his page on Twitter why it would be very difficult to organize a 51% attack against the BTC network: for these purposes, it is necessary not only to have a sufficient number of ASICs to seize the hashrate, but also to find a sufficient source of energy for all this equipment. What’s more, such an attack will become increasingly expensive with time and hashrate growth.

– The death of the mining industry –

This summer, when the price of the first cryptocurrency approached the $ 10,000 mark, the miners’ activity of the BTC network reached its historical peak of 65.19 Th / s. In 2018, following a rapid collapse of Bitcoin, the main producers of mining equipment had announced colossal losses and the cessation of their activity.

Thus, the producer of graphics cards and chips Nvidia announced that the period of the maximum demand for mining GPU was already over. According to the company’s calculations, sales revenue should have been reduced to $ 100 million, whereas they actually dropped to $ 18 million. Due to the collapse of the cryptocurrency market, the production of graphic mining cards not only brought no benefit, but also caused losses.
Thus, it has already been proved that a drop in Bitcoin prices could be detrimental to the mining industry. We do not know if the opposite is also correct.

– The capture of Bitcoin by digital giants –

Potential manipulation of cryptomarket by major players has been debated very actively and for a long time. There are many theories about their means of influencing the course of Bitcoin. One of the most popular tactics of market control is: a big actor sells a significant amount of cryptocurrency for a lower price than the market, this initiative causes panic and price drop, after which the bidder buys the assets for a very advantageous price and earns a considerable profit. This cycle could be repeated later. Do these major players have enough influence to destroy Bitcoin? Nobody knows it.

Some believe that the most important player is Satoshi Nakamoto, creator of Bitcoin. According to unconfirmed information, it holds not only a million pieces (almost 6% of their current number), but also has a way to destroy the BTC. In any case, many scholars consider this story of the type “I gave birth to you, I will bring you to an end,” incarnated by Satoshi Nakamoto, as a myth.

A more realistic threat lies in the forthcoming launch of Bakkt, a global and regulated platform for digital asset trading. Some expect this event with hope, while others have considerable fears. Some still indicated in 2018 that this service would not result in a revolution in the digital industry , but in the acquisition of Bitcoin by institutionalized investors.

On 19 September 2018, in the context of information on the future launch of Bakkt, concerned representatives of the cryptocurrency market sent a letter to the Securities and Exchange Commission evoking the dangers of the incorrect regulation of the corporate introduction of Bitcoin for technology.

The authors believe that if Bakkt kept all the funds in one account and used them to grant credits and investments, it could mix the funds of debtors and creditors. A similar situation was noted during the 2007-2008 financial crisis. Moreover, the accumulation of Bitcoins on a single account could multiply the risks of piracy, torpedo the decentralization and cause the collapse of the first cryptocurrency.

Among the most absurd theories about the death of Bitcoin, we can cite inter alia the Internet shutdown worldwide, a global cyberwar or the destruction of BTC by the Altcoins. What repercussions should we expect in the event of the disappearance of the first cryptocurrency? This question becomes more and more relevant from year to year. Nevertheless, it would probably be more important to understand what would happen if Bitcoin persisted.

The user of Reddit Luka Magnotta published six years ago a letter from the future. This is a message of 2025, the year in which the first cryptocurrency will exceed $ 1 million. Most digital parts will be in the hands of a handful of people who have created real cities to protect themselves and minors. States will no longer control taxes, growth will slow, while terrorist groups will hunt for cryptomillionaires. The world will be plunged into chaos and the only way to save it will be to destroy the first cryptocurrency.

We still have six years left until 2025: a lot of events can still happen during this period. And even if we currently doubt that the course of Bitcoin can reach a million dollars, such a scenario is not totally implausible.


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