Top 3 Bitcoin FUD Points: The Death Spiral, BTC Price Going to Zero and Next-Gen Blockchains
There are several FUD topics spreading on mainstream media and other newspapers regarding Bitcoin and cryptocurrencies. For example, how many times did we hear that China banned Bitcoin or that mining activities are destroying the world? Although these statements have already been refuted, they keep targeting the crypto community.
One of the main issues that arose during the last months is the so-called death spiral. The term is related to Bitcoin prices falling and miners leaving the Bitcoin network and securing it. What happens is that prices go down and miners are not able to keep their operations running.
When this happens, the hash rate of the whole network drops. And indeed, from its all-time high in August, it fell 50%. However, compared to a year ago, the network has experienced a very important growth in the hash rate that is equivalent to 245%.
As the hash rate decreases, it might be easier to perform a 51% attack, which is not even close to happening. As the network hash rate drops, so does Bitcoin’s mining difficulty that adjusts automatically. This allows new miners entering the market and lowering the breakeven.
Another FUD that spreads in the market is related to the price of the most popular virtual currency is the comment related to its price. There are several individuals saying that Bitcoin is going to reach $0 in the future. Bitcoin has been falling during the whole year and it reached new lows a few weeks ago. However, this does not mean that Bitcoin will not be growing in the future.
Nevertheless, it might be possible for Bitcoin to keep falling and reach $1,000 or even lower but not to zero. At least not in the very near future.
Another thing that has spread among the community about Bitcoin is that Bitcoin has now been superseded by newer blockchains. There are many new projects that are working on different blockchains known as 3.0, calling Bitcoin an old technology that cannot be used anymore.
Bitcoin does not depend on how many sidechains it has, the number of smart contracts running or the value measured in transactions per second (TPS).
The FUD spreading on the internet and mainstream media has been experienced before by the community. During past bear markets, several experts and analysts called for Bitcoin’s end, but none of them was able to be correct about it.
Bitcoin remains as the largest digital asset in the market and it has a market capitalization of $67 billion.