4 (More) Reasons Why Bitcoin Can Be Destroyed!
By Martin Wozke / January 30, 2018
Can Bitcoin be destroyed? Before we go into the speculation, let’s start with the facts – Bitcoin has been declared dead more than 200 times. So what could Bitcoin ‘really’ eliminate?
“Bubble”, “Ethereum Code destroyed”
Despite the fact that the world’s first crypto currency has existed for almost 10 years, it is still fashionable to predict its demise. Even supposedly smart people are known to propagate what Sebastien Meunier, a financial consultant with 15 years of experience how Ethereum Code work in business innovation, calls “Bitcoin Dysregulation Syndrome”. Bitcoin’s death is constantly predicted, although these predictions have been proven wrong every day.
But if we assume that these individuals have a certain intelligence, the only explanation for the failed predictions and emotional arguments is that they never take the time to learn and understand how the system works.
Scenario 1: Too Many Forks
Probability (next 5 years): Low
Possible effects: Bitcoin becomes meaningless
Bitcoin can be forced multiple times if the community does not agree for technical reasons (or “because of money”).
The Bitcoin cash split that took place last summer was not so damaging to Bitcoin because the nodes and hash performance of the network decreased. Theoretically, however, further splits could be possible in the future, further fragmenting the network and reducing its performance.
Should this happen, Bitcoin would lose its dominance and slowly sink into insignificance. Again, it is in the interest of the community not to allow this to happen.
Scenario 2: Hack
Probability (next 5 years): Medium to high
Possible effects: Temporary crash
This scenario can occur with Bitcoin Code
In the first case, called a 51% attack, a malicious network actor might try Bitcoin Code to hack the protocol itself. This is theoretically possible, but the probability is very low. The 51 percent attackers would destroy their own source of profit. It would also require huge investments in mini equipment and energy.
More likely is a hack attack on an application built on the protocol.
For example, Mt. Gox was hacked in 2014. 70 percent of all Bitcoin transactions took place on this platform. Today, there are many more exchanges around the world. If one of them were hacked and a large amount of Bitcoin were stolen, the price could probably collapse. As we know Bitcoin, the digital currency would recover.
Just recently, NEM worth $400 million were stolen from the Coincheck exchange: The price of NEM fell by only 15 to 20 percent and recovered in one day.