The author of the novel “Rich Dad Poor Dad” and entrepreneur Robert Kiyosaki admitted that bitcoin could fall to zero. This is not the first time such statements have been made; they have been made before by various experts. However, now, during the hype around bitcoin, is there a risk of it collapsing to zero? Or is this no longer possible?
Robert Kiyosaki admitted the possibility of Bitcoin collapsing to zero, but it is important to understand the context of his statements. He believes that the same fate could befall fiat currencies, including the US dollar. In his opinion, all fiat money is “fake” because it is not backed by real assets.
The risk of Bitcoin collapsing to zero at the current stage of development of the crypto industry is unlikely for several reasons:
1. Bitcoin has become a widely used asset with a capitalization of almost $1.5 trln. It is used as a means of saving, payment and speculation by millions of people and organizations around the world.
2. The Bitcoin network is underpinned by enormous computing power to ensure its security. The cost of attacking such a decentralized system is tremendous.
3. More and more institutional investors are investing in bitcoin, integrating it into the traditional financial system. Thus, big capital is interested in its stability.
4. The blockchain technology underlying bitcoin is rapidly developing and finding new areas of application, thus increases the value of the asset.
Admittedly, sharp price fluctuations in bitcoin cannot be ruled out. However, a collapse to zero is unlikely at this stage due to the high institutionalization, widespread distribution and significant resources invested in the network. Thus, it would make more sense to talk about a long-term decrease in the liquidity of fiat currencies due to problems in state financial systems, as pointed out by Kiyosaki.