Can Bitcoin be shut down?
Some investors still fear that bitcoin is supported by a fragile computer network or the internet, but it's totally resistant to attack.
Can a government ban Bitcoin? They can try, but the very essence of Bitcoin is decentralization. Meaning there is no central authority that gets to control who can and cannot use Bitcoin, and what Bitcoin can and cannot be used for.
Under really extreme circ*mstances, there are few scenarios that could spell the end of Bitcoin as we know it. For instance, a massive global power outage shutting down all communications and the internet around the globe could prevent nodes in the network from contacting each other, causing the system to fail.
A reasonable assumption that Bitcoin could hypothetically reach the null state of it's value is worth the thought. Even-though such an event is very less likely to take place, there are some factors that could theoretically lead to Bitcoin price crashing to zero.
It is certainly possible that the US President could issue an Executive Order banning Bitcoin. Remember, Executive Order 6102 outlawed gold ownership for American citizens from 1933 until it was repealed in 1974. However, that outcome is unlikely for four reasons.
Bitcoin the Cryptocurrency
In 2024, the majority of bitcoins are still out in the wild, so to speak—but over time, and if they continue to be treated as a speculative investment and store of value, these large entities will likely keep growing their holdings.
Bitcoin will be increasingly important as means of payment and an alternative asset, there is no doubt about that, but it is unlikely to displace the US dollar as the world's reserve currency.
Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is believed to own the most bitcoins, with estimates suggesting over 1 million BTC mined in the early days of the network.
Bitcoin is controlled by all Bitcoin users around the world. Developers are improving the software but they can't force a change in the rules of the Bitcoin protocol because all users are free to choose what software they use.
No additional bitcoins will be generated when the Bitcoin supply reaches its upper limit. Bitcoin miners will likely earn income only from transaction fees.
How much will $100 Bitcoin be worth in 10 years?
A $100 investment in Bitcoin could purchase 0.00607 BTC today based on a price of $16,466.14 at the time of writing. If Bitcoin hits the $1 million price target by Wood in 2030, the $100 investment would turn into $6,070. This represents a gain of 5,970% from now until 2030.
Bitcoin, it found, is likely to hit an average peak price of $87,875 in 2024, with some experts predicting it will climb as high as $200,000. On the flip side, the average lowest price Bitcoin could hit by the end of 2024, is seen as $35,734, the report said, with some predicting it will fall as low as $20,000.
| Year | Minimum Price | Average Price |
|---|---|---|
| 2031 | $1,103,061.68 | $1,133,978.59 |
| 2032 | $1,651,129.87 | $1,696,488.33 |
| 2033 | $2,404,164.56 | $2,488,989.08 |
| 2040 | $3,484,583.51 | $3,683,703.59 |
Bitcoin Undermines the Cycle of Trust
Its network is claimed to do away with intermediaries and, by extension, the elements of a government's system. Advocates believe that if cryptocurrency is adopted, a central bank would no longer be required. That is because crypto can be produced by anyone running a full node.
Sarathy concurs that there are risks involved with investing in these cryptocurrencies, including price volatility, cybersecurity concerns and a lack of regulations compared to traditional currency. Ultimately, it's up to each individual user how much risk they want to take.
Can the U.S. Make Bitcoin Illegal? In theory, it is possible. However, it is unlikely to happen as legislation would have to be passed, which is becoming increasingly difficult.
If Wood is correct and Bitcoin reaches $3.8 million, if you invested $1,000 in Bitcoin now, it would be worth $54,280 in 2030. This would result in a compounded annual growth rate (CAGR) of nearly 95%.
Does Amazon accept Bitcoin? No, Amazon does not accept Bitcoin directly. However, you can use Bitcoin and other cryptos to buy goods on Amazon via a crypto card or by using BTC to purchase an Amazon gift card.
Bitcoin's pseudonymous creator, Satoshi Nakamoto, set a hard cap of 21 million Bitcoins for mining. With each halving, the rate at which new bitcoins are created slows down, and the final bitcoin is expected to be mined around the year 2140.
Bitcoin is a risky investment with high volatility, and generally should be considered only if you have a high risk tolerance, are in a strong financial position already and can afford to lose some or all of your investment.
Can Bitcoin replace the US dollar?
Will Cryptocurrency Replace Fiat Money? It's unlikely that cryptocurrency, in its current form, will replace fiat currency in developed countries. However, it is possible in financially struggling nations.
Perhaps the most existential threat Bitcoin poses to banks is the potential to render traditional banking systems obsolete. As more individuals and businesses adopt Bitcoin and other cryptocurrencies for their financial transactions, the need for traditional banking services could diminish.
For the third year running, Changpeng Zhao, founder and former CEO of crypto exchange Binance, is crypto's wealthiest person. Despite pleading guilty to U.S. money laundering charges in November, CZ, as he's known, is now worth an estimated $33 billion, up from $10.5 billion last year.
However, some estimates can be made based on blockchain data and surveys of Bitcoin holders. According to data from Bitinfocharts, as of March 2023, there are approximately 827,000 addresses that hold 1 bitcoin or more, representing around 4.5% of all addresses on the Bitcoin network.
