It’s the third time Bitcoin is in a bear cycle, prolonged one it might be. However, skeptics have reared their ugly head and calling out for Bitcoin to go down to zero, eventually.
“It’s not a matter of If rather When Bitcoin will go to Zero”
With the crypto market in a prolonged bear market, skeptics have found their voices yet again. The Korea Times reported the experts contacted are seeing the future of cryptocurrencies bleak and expecting them to go down to zero.
“Bitcoin is no longer a new technology ― it has been around for a decade ― and still there is no use case for it,” said, Atulya Sarin, a finance professor at Santa Clara University in the United States.
“Primarily all we do with bitcoin is that we trade it. That is awfully similar to tulips and Beanie Babies in their heydays ― and we all know what happened to them. So it is a not a question of if, but more a question of when bitcoin will go to zero.”
Kevin Dowd, an economics and finance professor in the Business School at Durham University in the UK, shares similar thoughts,
“Many are scams, others are already dead. I believe bitcoin will eventually go to zero and so too will many bitcoin look-alikes. So the question is, what will survive? Ripple looks dodgy, so I don’t think that will last either.”
Cryptos will Fall Back to a Stable (unknown) Level
Andrew Sheng, a distinguished Fellow of Fung Global Institute, a Hong Kong-based global think tank and former Chairman of the Hong Kong Securities and Futures Commission shares his skeptic views on if prices will bounce back.
“Cryptocurrencies operate on the belief that the currency can be created through technology, such as blockchain that is uncrackable, and therefore the currency is limited in production, has value and its value is determined by the belief that using the currency would avoid third-party knowledge of the transaction, especially taxation, foreign exchange controls and anti-money laundering,” said Sheng.
“There is no system that is not crackable,” shared Sheng while believing some cryptos may survive but scams and investors losses make them subject to regulation.
“The world is experiencing a fantasy with cryptocurrencies and very soon reality will set in and the valuation will fall back to a stable level. Where that level is, no one knows. For ordinary retail investors, I would not recommend investing your pension savings in such cryptocurrencies. The value of the holdings depends on finding the next buyer. In a falling market, there may be fewer and fewer buyers … So, buyers beware. The state cannot protect individuals from their own greed.”