Cryptocurrencies “will fall”. Could Bitcoin become worth zero?

Not even Dogecoin will survive if dollar inflation is resolved, warns the billionaire and leader of the department inspired by the ‘meme’ cryptocurrency.

Elon Musk’s Trump administration department inspired by the meme-based cryptocurrency Dogecoin has sparked a new debate in Washington.

The billionaire warned this Tuesday that the resolution of inflation in the US could lead to a drop in the price of cryptocurrencies such as Bitcoin and even Dogecoin.

“If dollar inflation is resolved, the price in dollars to buy cryptocurrency will fall“, Musk on of dollars to crypto,” added Elon Musk.

The Tesla CEO’s comments come at a time when there is increasing speculation that his support for Donald Trump’s potential pro-crypto administration could revolutionize the financial landscape. You Dogecoin and Bitcoin prices rose after Trump’s election, in part, fueled by the great influence of the billionaire, CEO of Tesla and owner of the former Twitter, now X.

With the US national debt exceeding 34 trillion dollars (about 33 trillion euros) in early 2024, inflation continues to be a pressing issue in the nation.

In the cryptocurrency market, XRP, Dogecoin and Solana are all at critical times, warns expert Peter Brandt at .

The days of growth are over, believes the traderwhich points to the possibility of a 50% drop for Bitcoin and devastating losses for memcoins like Dogecoin, which could devalue, it is believed, up to 90 or even 100%.

Could Bitcoin become worth zero?

Although Bitcoin has gained legitimacy, the value of Bitcoin — currently around — could one day reach zero, argues “strategist and former crypto-skeptic”, Bernardo Mota Veiga, on .

The value of an asset is defined by the willingness of buyers to pay for it. Bitcoin, initially seen as a possible replacement for digital money, never managed to fulfill this role, writes Veiga. Despite significant growth, cryptocurrency remains more of a speculative store of value than a currency widely used in digital transactions, he argues.

The risk of Bitcoin concentration in the hands of a few actors, such as governments and large investors, is high, he points out — a risk that, if occurring, could lead to global disinterest and, consequently, to total devaluation of cryptocurrency.