Economist from Yale Explains Death of BTC Possibility
Since the beginning of 2017, when bitcoin was priced under $1000 USD on the market per coin to the end of the year when it reached its all-time high of almost $20000 on the market, the leading cryptocurrency has drawn the focus of investors, public figures and even professional football players. Founded on the building block that is blockchain technology, essentially a decentralized network connected through several computers utilizing advanced algorithms and has currently plummeted back to $6430 as of the 9th of August.
Despite fluctuations in price for the better or worse, as a cryptocurrency and an asset of value, bitcoin may drop to a level of no value whatsoever, explained as a 0.4% chance of bitcoin “dying” as a cryptocurrency by two economics experts from Yale, Professor Aleh Tsyvinski and Yukun Liu, a PhD candidate as reported in their research. Additionally, Ripple faces a 0.6% of dying and ETH presents a 0.3% chance.
Through analyzing data on the bitcoin extending back seven years to 2011, including the creation of Ether and Ripple tokens, both experts were able to determine the likely chance that any of the three major cryptos would see a decline in value to zero in just one day. In terms of fiat currencies and their chances of being rendered useless, the Euro displays 0.009%, the AUD at 0.003% and the Canadian Dollar at 0.005%.
As Aleh explains, the probability does seem extremely minor, although they display a much bigger possibility than fiat currencies becoming worthless on in value. Despite this, cryptocurrency enthusiasts continue interacting and diving deeper into crypto investment and development. The Winklevoss brothers had invested $11M in BTC five years ago have repeatedly insisted that bitcoin will replace gold in terms of value at some point. According to Cameron, one of the brothers, bitcoin will see a value in the trillions.
He adds that both brothers believe that bitcoin is a disruptive element to gold and additionally state that it functions better than gold in terms of monetary characteristics. He goes on to say that cryptocurrencies are better than gold in every aspect, from portability to durability.