The only reason the price will go to 0 is if there ends up being more than 21 million coins meaning someone has cracked the underlying encryption which allows them to print bitcoins at will.

Bitcoins can be sent in very small amounts. I could send a message using bitcoin transactions.

E would be the lowest, at one satoshi, and Z would be twenty-six (based on this https://i.imgur.com/H5yqeKX.png). Spaces and punctuation could be accounted for too, but would cost extra to communicate. I could send a message in this way by a series of transactions in very small denominations. You would pay a few thousand satoshi to have a method of communication that is completely anonymous.

If the two communicating nodes had an agreed upon cipher they could encode messages in the values sent, and nobody watching would know what was being said, or who was saying it.

I would put money into Bitcoins just to be able to do that.

The question suffers from circular logic. In reality, the only way exchange rate would drop to 0 is if you suddenly couldn't do anything with Bitcoin.

Let's say instead of being zero instead say it was just a penny, or a fraction of a penny even, instead.

Bitcoin is a protocol for a payment network.  Even valued at a fraction of a penny, bitcoins can be used to send and receive value.

So even if the total dollar value of all ten+ million BTC that currently exist was only valued at about $100K USD (10,800,000 * $0.01 each), there still would be demand for bitcoins to be used for transferring value.

And because it works well for that, there will be more transactions that occur.

But since there are only 10.8 million BTC that exist, the only way to accommodate the greater dollar value of the money transfers (assuming a constant currency velocity) is for the exchange rate to be a higher value.  So the exchange rate rises to meet the level needed for transactions.  And then there is speculation that future demand for the coins for use in sending money will continue to rise.

And you end up to where we are today.

Take all and give the seller a bonus

I doubt bitcoin will ever go to 0. While bitcoins isn't backed by any official authority, they are backed by hard work and a dedicated community. So as long as we have people that still believe in Bitcoin, work hard to promote it and have some great businesses, the price will never drop that much (even thou that is probably the jinx and next week it will be back at $10 LMAO).

I was getting more at sweat equality in bitcoin how hard people are willing to work to keep it as a strong as it is. While your looking at it from a pure bitcoin being currency and what you get for it.

here is one hypothetical scenario:

1. Bitcoin price (for whatever reason) drops down to 0, that means there is absolutely no demand for Bitcoins, no one wants to pay even $0.00000001 for BTC 1.
2. The number of transactions on the network will reduce, eventually drop to 0
3. Few or no transactions will means there will be no blocks to mine
4. But also, the reward the miners receive for their work (BTC 25 currently) will be worth 0 and as there is no transactions and fees, the reward will be nullified
5. Many miners will stop their machines, only the ones that are mining for the sport of it and their electricity is free will keep mining empty blocks (is this possible?)
6. The difficulty will collapse dramatically, proportional to the hard-core miners hashing power left on the network
7. These few miners will earn(?) Bitcoins at a rate they never dreamed about, but of course these Bitcoins will be worth 0 at that moment
8. Everyone by default will become a hoarder.
9. All hoarders will wait for one of the two things to happen - someone suddenly decides he need Bitcoin and creates demand for Bitcoins or the end-goal of 21,000,000 million Bitcoins is reached and then the network suddenly stops to a halt, as there is no transactions, no fees, no reward, and no reason to waste electricity on.
10. Years later, someone invents a great application for the well forgotten Bitcoin, resurrects the projects, Bitcoin jumps to $zilion level, then everyone frantically starts searching through their grand parent's computers and USB drives for wallet.dat's with the hopes of becoming Bitcoin zilionaires, again...

This is not true.  It is perfectly valid to mine a block where the only transaction is the coinbase transaction that pays the miner their subsidy.  There are many blocks like this in the blockchain already


The reward will be greater than 0 as long as one person runs one miner for the next 136 years.


Yes it is possible.


Maybe someone will buy two pizzas for 10,000 BTC?  It has happened before.  The moment that happens, bitcoin instantly has a value again (price of 2 pizzas divided by 10,000).  This creates a starting point for competition which can drive the price back up.  (I'll sell 2 pizzas for 9,000 BTC!).

I'll sell 2 pizzas for only 8000 bitcoins!

-MarkM-