What will happen if bitcoin prices crash?
According to Dutch historian Nicolaas Posthumus, only casual traders participated in bidding up prices for tulips for greed and profits. In the end, it was these people who were affected when prices collapsed. Similarly, a crash in bitcoin prices will trigger a sell-off and affect a very small number of people.
What will happen to cryptocurrencies if they crash?
The current rise in prices for most cryptocurrencies is mostly the result of a domino effect from bitcoin’s surge. It is quite likely that a bitcoin price crash will result in a correction in their prices as well. It is also certain that the vast majority of cryptocurrencies that populate the current listings will disappear.
Do you owe taxes on Bitcoin?
A bipartisan bill was presented to Congress in September in an effort to create a tax exemption for cryptotransactions under $600. Whether you’ve used bitcoin as an investment or as a currency, you owe taxes on it.
What happens if bitcoin's value goes down to zero?
If the value of bitcoin goes down to zero, your "investment" is worth zero. end of. If Bitcoin's value against the dollar dropped to $0 after you purchased Bitcoin, you would only lose the total amount you initially used to buy the Bitcoin ($500 in your example). Right, but you're not considering other scenarios.
