FX.co ★ 6 scenarios of bitcoin collapse

Experts have most bizarre ideas about the bitcoin future. One of these pundits, Sebastien Meunier - a financial services adviser with 15 years of experience – revealed several reasons for the collapse of the world's most popular cryptocurrency. Here they are.

Critical bug in bitcoin network

The expert estimates the possibility of this scenario as quite unlikely. However, in this case, bitcoin will lose its relevance. A bug in a bitcoin update could create a fork of a virtual currency. As a result, the integrity of the whole system will be under threat. Installation of a new system and re-launch will cause a slump in the bitcoin price.

Multiple forks

The likelihood of this scenario is small. However, if there are disagreements over the bitcoin future, forks (the code base of a software project that becomes the base for other projects) may appear. If several forks occur simultaneously, it can reduce the power of the network.

Governmental regulation of cryptocurrencies

This scenario is quite possible. Recently, governments of several countries have been paying close attention to the issue of virtual currency regulation. Governments cannot influence bitcoin directly due to its decentralized nature, but they can control and restrict its use on their territory. Sebastien is sure that global leaders are ready to support cryptocurrency regulation, impose taxes, and protect interests of global investors.

Large-scale cyber-attack

Meunier considers the likelihood of a large cyber-attack rather high. In the so-called 51-percent attack, an actor can try to hack the protocol itself. In this case, the whole ecosystem of bitcoin will be destroyed. This scenario is less possible than a general hack of an application built on top of the protocol.

Appearance of rival cryptocurrency

A new digital currency, which can replace bitcoin perfectly, may appear. This is not very likely, but if there is such a virtual means of payment, it should exceed the bitcoin capitalization and effect by several times.

Market fatigue

Meunier finds the scenario, in which the market will get fed up with bitcoin, unlikely. If digital means of payment fail to gain in popularity in the real world, people will lose interest in them. As a result, growth in the market will slow down and investments will shrink. The crypto market will lose its investing appeal.