Most people who are entering the Bitcoin market, making their first investments, ask themselves the following questions: What happens if Bitcoin crashes or loses its value? Can Bitcoin collapse?
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You may have heard that Bitcoin will collapse. Yes, this is true. The Bitcoin protocol was created in a very smart way that ensures the sustainability of the currency.
The last Bitcoin is expected to be finished in the year 2140, as determined by the Bitcoin protocol, which states that only 21 million Bitcoins can exist.
Bitcoin mining is a smart device that was created in conjunction with Blockchain to encourage the use of currency. That’s one of the main secrets of Bitcoin.
Is Bitcoin going to collapse or lose its value? No, it is really the inverse.
Over the years, Bitcoin is becoming scarcer, which makes the coin more valuable.
We can compare it to gold or some gems, for example, because it is rare in nature, its value increases every day due to scarcity.
The less there is of something, the more valuable it is, and when the last Bitcoin is mined, the value of the coin is estimated to increase absurdly.
The Bitcoin protocol also has a feature that strengthens Bitcoin and maintains its market value.
The protocol has a feature called “halving” that defines that every four years the amount of Bitcoins available in each block is halved.
Simply put, this makes every four years a boom in Bitcoin appreciation.
Read also: 14 Myths About Bitcoin: True or False?
The next halving will be in May 2020 when the bitcoin block is divided once again by 4.
Another feature of Bitcoin is that it only has eight decimals.
Another feature is that n Bitcoin has 8 decimals, that is, 0.00000001 bitcoins. The smaller fraction is known as Satoshi, after Bitcoin’s pseudo-creator Satoshi Nakamoto.
Now that you know that Bitcoin won’t end and won’t lose its value if you want to invest in Bitcoin you have to be aware that this is the best time to do so.
According to the experts’ predictions, not only is Bitcoin expected to return to its $20K peak, but it’s expected to surpass it and reach 50K, 100K or even more.
Of course, this is just forecasts and speculation and like any volatile investment it can have a lot of fluctuations but you should not stop researching and monitoring what can happen to Bitcoin in the future.