What Would Make Bitcoin Fall to Zero? 4 Things That Give It Value

Bitcoin was the first digital currency that aimed to eliminate the need for central financial authorities, such as banks or governments. It’s been on a wild ride since it was originally created in 2009 and has been called many things since then: the future of money, a scam and a bubble waiting to pop. And even though bitcoin has survived multiple crashes and skeptics have been praying for its downfall for almost two decades, bitcoin is still standing.

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But could it eventually go to zero?

Here’s what would have to happen for bitcoin’s value to disappear completely and what’s currently holding it up.

What Could Make Bitcoin Worthless?

For bitcoin’s value to drop all the way down to zero — from its over $80,000 as of March 11 — it would need to lose its fundamental value drivers. Here are some scenarios that could send it into oblivion.

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Government Bans and Regulations

Bitcoin has faced quite a few regulatory crackdowns in countries like China, where mining and transactions were banned. For example, in 2021, bitcoin’s price dropped by almost 30% after a Chinese government crackdown on banks’ use of cryptocurrencies.

So, if for some reason, major economies like the U.S. or the EU implement a ban on bitcoin to make it illegal to use, trade or hold, demand would plummet.

A Global Energy Crisis

Bitcoin mining consumes an enormous amount of electricity. According to Crypto.com, one bitcoin transaction consumes 851.77 kWh of energy on average, which is the equivalent of around one month of electricity for the average U.S. household.

If energy costs skyrocket or governments impose severe restrictions on mining due to environmental concerns, bitcoin’s network security could weaken. A drop in mining power could then make the network more vulnerable to attacks, which would scare investors away.

Complete Loss of Public Trust

If people stop believing in bitcoin, whether that’s due to a major scandal or market manipulation, it could start to lose value. Because, unlike stocks, bitcoin itself doesn’t generate cash flow or have intrinsic value beyond what people believe it’s worth. This means that if investor confidence disappears, so will its value.

Why Does Bitcoin Even Have Value in the First Place?

Despite the risks, bitcoin is still worth over $1.6 trillion in total as of March 2025. Here’s why people continue to believe in it.

Decentralization and Security

Bitcoin’s value can be attributed to trust in its decentralized network, where each and every transaction is transparent, secure and verified by a distributed global consensus. This decentralized model eliminates the need for intermediaries, which helps lower the risk of fraud and manipulation.

And unlike traditional currencies controlled by governments and banks, no entity can manipulate bitcoin’s supply or transactions, which is what makes it such an attractive alternative to fiat money.

Scarcity 

Another factor that contributes to bitcoin’s value is its limited quantity. Bitcoin’s supply is capped at 21 million coins, which means it can’t be printed endlessly like traditional currencies.

Plus, bitcoin has halving events that occur every four years, where the reward for bitcoin mining is cut in half. This activates a deflationary mechanism to slow the supply growth of bitcoin over time.

Institutional Adoption

Big companies, hedge funds and governments are buying bitcoin. Institutions like BlackRock and Fidelity have introduced bitcoin ETFs, which makes it even easier for investors to gain exposure. This kind of mainstream adoption gives bitcoin credibility and strengthens its value over time. 

Use as a Store of Value

Many see bitcoin as “digital gold” because it allows people to store wealth outside of traditional banking systems. In countries with unstable currencies, like Venezuela or Argentina, bitcoin helps them preserve money against hyperinflation.

Could Bitcoin Really Drop to Zero?

There’s no crystal ball to predict what bitcoin will and will not do. Even though bitcoin could crash pretty hard — as it has multiple times in the past — its combination of scarcity, security and adoption is what currently keeps it afloat. As long as people believe in bitcoin and continue to use it, it’ll hold value.

That said, remember that bitcoin is still a speculative asset that’s risky to invest in, and its value is solely based on market sentiment. So, if that sentiment completely disappears one day, then bitcoin could, in theory, go to zero.

But for now, it seems that bitcoin won’t be going anywhere.

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This article originally appeared on GOBankingRates.com: What Would Make Bitcoin Fall to Zero? 4 Things That Give It Value

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