Post
Topic
Board Economics
Re: Biggest threats to the price of Bitcoin.
by
jaysabi
on 08/11/2020, 00:12:52 UTC
Hi,

As everybody keeps pointing out that Bitcoin is a risky investment, I'm trying to get a better understanding of the greatest risks to my coin.

I must admit that sun flares and quantum computers were not what I was expecting to find when I googled this but alas...

https://medium.com/coinmonks/the-5-biggest-threats-for-bitcoin-that-have-the-potential-to-destroy-it-9b3845ebcd1d

https://decrypt.co/29625/the-biggest-threats-to-bitcoin-in-2020

To be fair, I think these sources are talking about things that would all but wipe out Bitcoin rather than just reducing the price.

I was wondering what you guys think is the most likely instances that would cause the price of bitcoin would sink back below say the $5,000 or the $10,000 mark?




Quantum computers that could crack the cipher is a distant risk, as is a sun flare that would knock out the internet. They exist, but aren't likely at all. What's far more a threat is price volatility and the low utility of the coin. It's just not useful as a currency. The other side of this is that it is now reaching more of a consensus about being a store of value (despite the volatility). The biggest threat is that people just stop believing it will hold value in the future, which is the only reason it has value now.