Is this possible?
Can Bitcoin go to zero? Is it possible that something so important happens to the entire network that it loses value?
Don't trust, verify!
In this article we will analyze the concrete chances that Bitcoin (BTC) has of failing and consider how likely this is to happen. As we all know, Bitcoin is the best known cryptocurrency in the world and is based on a global decentralized network. Anyone can participate in the network with their own node and it is possible to download a copy of the entire blockchain which is the same for everyone. A peculiar feature of this technology is that it is totally decentralized and trustless. In fact, it is not necessary to trust an intermediary such as the bank: you can verify your assets and transactions by your own. However, who before or who after, we wondered if it is possible to really trust something that only exists online and that has a "relatively short" history.
Let's now consider the possible risks that can undermine the security and credibility of Bitcoin, analyzing them individually.
The first criticality in the eyes of an inexperienced investor is the presence of a bug in the code that underlies the Bitcoin technology. In fact, if there was a bug and a malicious hacker found out, he could use it (for example) in his favor to mine infinite BTC. Obviously, the discovery of this type of problem would be instantaneous by the network, as has already happened in the past, but it would have repercussions on the price of the asset due to the FUD that would unleash. Importantly, the code is open source and has been tested and retested for ten years now. This does not exclude the presence of errors, but considerably reduces the possibility. it is very unlikely that an error has gone unnoticed in the eyes of the whole community and all the developers who have worked on this technology.
The creator of Bitcoin is known under the pseudonym of Satoshi Nakamoto. This figure is still unknown today because after launching his creation he took a step back and made himself nowhere to be found. To date it is not possible to know who he is or trace him and that is why Bitcoin is also referred to as "the leaderless revolution". This was a brilliant move: no one can go to Satoshi to demand something and cannot accuse him of anything. This implies that if a state wanted to retaliate it would have no one to do it against. On the contrary, if Satoshi Nakamoto were to reveal himself, a possible legislator would have a bureaucratic foothold because individuals are prosecuted and with them their companies as well. Satoshi currently holds the first mined BTCs and has no reason to reveal himself. Indeed, for now it is convenient for him to remain anonymous, as long as he is still alive.
Today Bitcoin is mined with sophisticated and very powerful hardware, which generates an immense hash power. These computers, however, are not comparable to the supercomputer called "quantum" that will replace them in the future. The quantum computer uses very efficient cabbage systems that would allow in a short time to overcome the elliptic curve cryptography, which is the basis of the generation of public keys starting from private keys. Therefore, getting through a wallet encryption would require minimal effort. However, we must consider that the advent of this type of computer will take a few decades and the first will certainly not be for civilian use. Furthermore, in ten years cryptography will certainly have evolved and developed quantum-resistant systems.
It is now famous as the 51% attack, it is the possibility that a malicious user takes over 50% of the computing capacity on the Bitcoin network and thus has the possibility to decide what to write or even rewrite a block. To achieve such a high percentage of control, however, it is necessary to have very expensive hardware and as soon as absolute control over the network is achieved, the price of the single BTC would start to drop because so many investors would exit. All of this makes it inconvenient to carry out this type of attack because it will cost you money. Furthermore, even if you could rewrite a block, you could not act on past blocks but only on the last ones.
What would happen if all states in the world came to an agreement and banned bitcoin? Anyone who wants to buy or sell it could no longer and it would only be possible to hold it in anonymous wallets. But can this happen? No. States are unable to agree on simpler issues and, moreover, who wouldn't want to ride the wave of a growing trend? Indeed, a state that bans Bitcoin precludes itself from monetary advancement as well as the resulting profits.
Concluding thought 🧠
A writer's opinion all these possible scenarios are quite remote. These are borderline cases that can come true and even in the event that something, Bitcoin responds it has always done until today: it would rise stronger. Resilience is what characterizes this asset and is one of the main reasons we hold it and why many of its fundamentals. Certainly there will be other difficulties in the future, but they will simply be an opportunity for a FIAT world which innovation we have in our hands.
This work is the result of research carried out on the net, revision and integration on my part of free content to which I have added my considerations.
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