As the price of bitcoin rises and falls, some are left wondering what would happen if the coveted cryptocurrency crashed. According to a video from CoinTelegraph, a crash for bitcoin would have no impact on the world economy whatsoever.
With a market cap of $137 billion USD and 40 percent of all bitcoin being held by just 1,000 people, according to Bloomberg, the global impact would be minimal if anything. For comparison, the 2008 financial crash resulted in Americans losing $12.8 trillion USD.
That said, bitcoin’s crash would have some impact in the cryptocurrency realm. CoinTelegraph hypothesizes that the rest of the crypto realm — valued at roughly $150 billion USD — would stagnate, leaving only the strongest, real-world utility companies left in the space.
This may not be such a bad thing, though.
CoinTelegraph compares this possibility to the dotcom bubble of 1997 to 2001, in which the strongest companies, such as Amazon and eBay, emerged from the crash stronger than before.
CoinTelegraph concludes: “So, in short, if Bitcoin crashes, many individual investors will lose money; there would be blood, sweat and tears; Twitter would explode; YouTube would cry out in horror; 100 bitcoin whales would have a really bad day, but life would go on and, in the end, would it be a bad thing?”
- Chicago Blockchain Project to Hold First Voice of Blockchain Event - 31 July 2018
- How the .HIVE Gaming App is Buzzing Into the Cryptosphere - 25 July 2018
- What Would Happen if Bitcoin Crashed? Not Much - 23 July 2018