Say Crypto goes to zero, what happens?

Lot of questions:

If Cypto goes to zero, what exactly would be the fallout? 

What about NFTs?

If the stock market drops 20%, what effect would that have on crypto?

I have a friend who says hes putting "30%" of his paycheck into BTC, made me think what would exactly happen for him if it goes to 0?

Comments (8)

  • Analyst 1 in IB - Gen
Dec 4, 2021 - 10:48pm

Ugh, people are still making these arguments? lmfao gives me deja vu back to those 2018 threads on crypto where countless "smart" and "qualified" guys embarrassed themselves on here. Get over it, dude. It's just another asset class. Stop overthinking things, I use to be like this and became happier just going with the current than try to feverishly out prove everyone else.

Dec 3, 2021 - 11:18am

ironman32

If Cypto goes to zero, what exactly would be the fallout? 

A lot of people would have to move back to their mom's basement....but not a huge deal considering that most crypto investors were already living there two years ago.

  • Associate 1 in PE - Other
Dec 4, 2021 - 1:09pm

If crypto goes to zero, people will lose 100% of their investment.  The exact same as if any other investment goes to zero.  Sounds like you're upset you missed out on >1000% gains YoY.  Sad!

Most Helpful
Dec 4, 2021 - 9:18pm

I think the pool of bitcoins is so concentrated with so few people that it won't go to zero since they'll just pump it among themselves, but the downside of super concentration is that unless you get major intellectual buy-in from the Fidelitys and Vanguards of the world, you're just basically ping-ponging it back and forth between a small group to maintain the illusion of a liquid and stable market. Like, what happens if somebody wants to dump $200MM worth of BTC? We saw that price action tanks it 20% instantly, even though the market cap is $1 trillion. So unless you have massive institutions driving price discovery, your coin's price ceiling will be capped out and one million retailers buying fractional coins aren't going to push BTC to 100K+. My 2 cents. 

  • Analyst 1 in IB - Gen
Dec 4, 2021 - 10:45pm

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