Is Bitcoin Dead 2022?
In 2022, many people are wondering if Bitcoin is actually dead…
BTC has been already declared dead multiple times with the latest obituary written by Euro Pacific Bank owner and Gold bug ; Peter Schiff who predicted “Bitcoin will not recover”. In the past year, Bitcoin has fluctuated between a high of $68,789 and a low of $17,708, supporting its extreme volatility and giving Bitcoin critics ample evidence to support their claim that Bitcoin is no longer viable and won’t survive 2022.
What is Bitcoin?
Bitcoin the first digital currency which operates free of any central control or the oversight of banks or governments. Instead it relies on peer-to-peer software, technology and cryptography. A public ledger records all bitcoin transactions and copies are held on servers around the world, this is known as the blockchain. Anyone with the right computing hardware can set up one of these servers, known as nodes. Consensus on who owns which BTC coins is reached cryptographically across these nodes rather than relying on a central source of trust like a bank.
Why Do People Think Bitcoin Is Dead?
Since 18 June 2022, People searching Google for “Bitcoin dead” have significantly increased. Google Trends keeps track of how many people searched for “Bitcoin dead” keywords over time and it gives them a score from 1 to 100 based on the number of searches. The number is now at an all-time high, compared to previous years.
This being said, long-term Bitcoin investors aren’t worried as they’ve been through 73% declines before in the last 10 years, but historically previous BTC declines didn’t involve anywhere near the total market cap lost during this bear market decline, nor did they involve massive leverage in the market.
What Does the Term ‘Bitcoin is Dead’ Actually Mean?
“Bitcoin dead” is a term used to describe the event when Bitcoin no longer has value. This phrase is derived from the common phrase “dead coin”. A “dead coin” refers to a cryptocurrency that has actually disappeared or is likely to disappear due to a variety of factors such as losing value, being hacked, being exposed as fraudulent, or traders’ and investors’ declining interest in the coin.
But this is not the first time the number of searches for “Bitcoin dead” has been high. This keyword’s popularity had increased once before this, although the number is lower than last year. You can see the data from Google Trends charts for the phrase “Bitcoin dead” worldwide and make your own assumptions.
What’s causing the increased Google searches for ‘Bitcoin is Dead’?
One of the reasons why many people are searching for the keyword “Bitcoin Dead” is that BTC prices are falling for a variety of reasons. But there were two major events that have played a significant role in the increasing number of searches for Bitcoin is Dead.
Google search results normally reflect the asset market’s peak anxiety after weeks of relentless crypto selling. A big change in tone of the Federal Reserve’s policy puts pressure on all risk assets. And along with the Terra Luna explosion and the related “contagion effect,” on some major crypto players, many people were wondering if BTC can survive and is probably why more and more people started searching for “Bitcoin dead” on Google.
Reasons Why Bitcoin is Not dead?
Here are some important points of why Bitcoin is not dead, and will continue to thrive in the future:
The Bitcoin hash rate
This rate refers to the total amount of computing power used by the Bitcoin network. It helps Bitcoin stakeholders in estimating the network’s level of decentralisation and security. According to the digital assets company Blockchain.com, the Bitcoin hash rate has been in a bullish trend and it reached an all-time high recently on June 12, 2022. This shows us that the amount of computing power dedicated to supporting the Bitcoin network is trending close to its all-time high and that the Bitcoin network has never been more secure then now.
The Bitcoin Supply
Bitcoin’s supply is strictly limited to only 21 million coins. The total supply of Bitcoin, however, is currently slightly more than 19 million, with the remaining two million yet to be mined. Around one million bitcoins mined by Bitcoin founder; Satoshi Nakamoto have never left their initial wallet and are assumed to be locked and lost forever.
The Bitcoin’s Lightning Network
This refers to a second layer protocol built on the Bitcoin network that allows Bitcoin transactions to take place outside of the blockchain. It speeds up BTC transactions and reduces transaction costs. The Lightning Network has solved Bitcoin’s scalability issue, and the world can now use the Lightning Network to execute millions of Bitcoin transactions per second and make micropayments at extremely low transaction fees.
Digital assets regulation
Governments all over the world are starting to soften their stance on digital assets and putting in place regulatory frameworks to capitalise on blockchain technology. While some governments, such as El Salvador and the Central African Republic, have pursued full-scale adoption, others are simply regulating cryptocurrency exchanges and taxing cryptocurrency gains. The most notable regulations to date are Australia’s two spot Bitcoin ETFs, Binance’s Dubai license, The Purpose spot Bitcoin ETF in Canada, and the European Union’s current legislative package to govern digital assets.
But Is Bitcoin dead?
Bitcoin is not dead, at least not for the current time being. In fact, the debate over whether the 2020-2021 crypto bull market has actually ended is still going on today. Even the many people who think Bitcoin is in a bear market do not believe it is really dead. Despite its high volatility and classification as a high-risk asset, Bitcoin still remains one of the greatest options for people who are interested in the crypto world. Bitcoin price must reach zero and until there’s nothing left to trade, to be considered truly dead.