Bitcoin is facing total collapse as prices retreat and investment pull back affect the market. As fear of a Bitcoin failure grows, uncertainty is setting off a series of events that is progressively dismantling the Bitcoin infrastructure. As panic sets in, capitulation becomes a near certainty and the future of Bitcoin comes into question. However, what most people don’t realize is why this is all happening and what may come after.
The first event causing the shutdown of Bitcoin is the loss of trading volume. The protracted bear market is driving investors to sell their positions and temporarily exit the market waiting for the market to turn. Retail investors have stopped buying and the massive sell off is the first step towards a market crash. The result is the lack of volume is steadily driving prices to zero.
The drop in transactions is causing the costs of mining to rise. Production costs are quickly overtaking profits forcing many miners to abandon mining as a business. Miners are critical to the health and security of crypto currencies. Therefore, the fail of mining will disrupt the use of crypto in any business capacity. However, Bitcoin will not destabilize unless the big mining companies and pools abandon it. If sales falter for Bitmain, Cannaan, and others manufacturers, they will be forced into bankruptcy. Without mining equipment, the downfall of Bitcoin will be inevitable
ICO / Start Up Fail
Regulation and low prices are affecting the crypto ecosystem in an irreversible way. SEC enforcement and the devaluation of crypto has expedited the economic downturn of all currencies. Some ICOs are closing shop due to regulation and depleted funds. ICOs offer diversity and innovation; without them the system will suffer an anemic shortage of functionality and expansion.
Investment Dries Up
The news that over 80% of ICOs haven’t produced a product is leading investors to pull the plug on further investments. Recent articles indicate that investors have pulled out of at least half a dozen projects last month. It started with Goldman Sachs stopping their plans to open a crypto trading desk and ending with the Basis stablecoin cancellation.
Bitcoin will disappear if it fails to capture public interest
The final requirement for a complete Bitcoin breakdown is the ‘failure to launch’; The failure for it gain any mainstream adoption. This will virtually relegate Bitcoin to a use-specific, cult programming following.
There are special interest groups composed of “Whales”, accredited investors, banks, and other financial institutions who seek to suppress prices and revert Bitcoin’s values its initial state. The goal is to persuade retail investors to sell their positions so that these crypto cartels can enter the market at bottom prices. Once the market is reset, they will be in a position to re-sell crypto once again from a position of advantage. The market will be transformed, regulated, and controlled.
Given the state of the market, it’s not hard to imagine that crypto currencies might come to an end in the near future. Crypto losses are nearing 90% from their all time highs and mainstream adoptiom is still a distant prospect. Analysts predict the stall in trading volume might push Bitcoin’s price below the next psychological resistance line of of $3,000.
Nonetheless, there are ways crypto can survive. Bitcoin can go dormant for years and resurge. It can go back to being a small time sytem like it was in 2010 – 2013. Miners can shutdown mining rigs and restart when market recovers. For now, Bitcoin is inching ever close to its demise where it can be repurposed to serve the centralized financial establishment.