What is the chance of a person wanting to buy into a new currency that does not have a base in the dollar? Well, the answer to this question is very slim, especially if the person understands what they are doing and is educated.
Basically, any digital asset has an intrinsic value based on how much it costs to purchase. In other words, you could buy with a dollar bill for fifty cents. You could even get fifty cents back if you sell the bill for one hundred dollars.
This is how the price of a digital asset works, but there is something that goes into that equation that is called supply and demand. The more supply of the asset, the less it will be available for the purchase and vice versa.
So, if the government stops printing the currency, then people will no longer have the ability to exchange their money for other currencies. There would be very limited supply of money. The prices of all assets would decrease, because all that money would no longer be available. This means that the prices of all commodities would go down.
However, if you were to use the funds that are left to buy up some of these commodities, you could create a huge increase in supply, which in turn will create a large increase in price and a short period of time, the price will go back up. This is how the global commodity market works. But, with digital assets, that process is completely different.
Because there is less supply of the asset, prices will rise because there is less supply. Therefore, when this happens you will need to pay more money to buy into the digital asset. That’s what it is like with a currency that doesn’t have a backing in the US dollar. It would be hard to find such an asset, as everyone would be looking for other countries’ digital assets to buy. But, if you want to try to buy in these digital assets, then the odds are very high that you will end up with something that doesn’t have a backing.
So, in theory, yes, can Bitcoin reaches zero. But, in reality, there is just too much supply, that it is very difficult to find anything that has a backing in a digital asset, because there are so many that can be found.
So, the answer to the question, can Bitcoin reach zero, would depend on the size and the price of the digital asset you want to buy. If you are trying to purchase enough digital assets to cover the price difference between the two currencies, then you should be able to find one.
However, because there is too much digital assets, then it may not be possible to buy enough at one time and therefore there will be a big correction. during the correction. This is what happens with gold.