Thought Experiment: Bitcoin falls to $1000. I think it would recover.

[Satofan44]

Price doesn't determine an absolute truth on Bitcoin.  Its been 1000 before, was recent enough I can remember it and I even remember the apathy at the hundreds.  The most morose subdued market I can remember was actually after getting to 1000 but then selling off, it might have been down 80% for some people not all. It took some time, alot of volume and new users, but I was an 'old' user in a minor way, many stayed and found usage ; that's how recovery occurs & the regular usage is superior to plain big numbers.

It would be completely incorrect to make a base comparison that the price does not determine the status of anything, especially things like assets. Furthermore, it would be completely incorrect to state that the same number can be used to describe the same meaning under entirely different contexts -- contexts matter a lot. If something has risen from $1 to $1000, then the context of that number is very positive. If something has fallen from $100 000 to $1000, then the context of that number is very negative and it has nothing to do with the previous situation. They are entirely different even if the number in both cases is $1000.

If we swap volatility for the word accuracy it might bring more sense to people to consider.  BTC is volatile we know this, it jumps around and the peaks are savage builds higher, hence alot of overly positive people or hype.
  The peaks arent accurate, volatility you like doesn't make it some solid beam of strength that will always be there.  By its nature the most rapid price changes in BTC especially are easily lost, its far more boring to consider but a sell can help to build strength, so long as we're building volume its a good process.

What is that supposed to mean and in what world does that make sense? Markets are not volatile, they are accurate?   For the other part, Bitcoin is "not building volume" -- it has enough volume, don't bring that shitcoin copium statements where any market activity is good because the shitcoin is so dead that any volume it gets is seen as positive.

[Swordsoffreedom]

When you see bitcoin attaining the level of $126,000 all-time high and still fall down to $1,000 then be rest assured that there is probability back later in the future, all we may needed to do is to hold and patiently wait till the season to rise will come, moreover in reality, we can expect that bitcoin should Fall to this stage, but when it happens with altcoin in such manner, then we should already know that there is fire on the mountain.

Do you know by what percentage Bitcoin would drop if it fell from $126k to $1k? That is a decline of more than 99% and that mean almost all of bitcoin's value has been wiped out. This usually only happens with shitcoin and when confidence in them has almost completely disappeared. If that really happens to Bitcoin, it would also mean that faith in Bitcoin has completely vanished

How can Bitcoin recover if people's faith in it has almost completely vanished? If that happens, it will be the end, and it will be time for us to look for alternative instead of continuing to patiently wait

[Awaklara]

When you see bitcoin attaining the level of $126,000 all-time high and still fall down to $1,000 then be rest assured that there is probability back later in the future, all we may needed to do is to hold and patiently wait till the season to rise will come, moreover in reality, we can expect that bitcoin should Fall to this stage, but when it happens with altcoin in such manner, then we should already know that there is fire on the mountain.

Do you know by what percentage Bitcoin would drop if it fell from $126k to $1k? That is a decline of more than 99% and that mean almost all of bitcoin's value has been wiped out. This usually only happens with shitcoin and when confidence in them has almost completely disappeared. If that really happens to Bitcoin, it would also mean that faith in Bitcoin has completely vanished

How can Bitcoin recover if people's faith in it has almost completely vanished? If that happens, it will be the end, and it will be time for us to look for alternative instead of continuing to patiently wait

You are correct, once users' trust in Bitcoin collapses, it will be difficult to rebuild the market. Although it still has value, the decline that has occurred has also changed the market situation as well as user confidence. If there are some people who still loudly say to be patient and wait for returns, what I see is actually an act of frustration to console themselves over the huge losses they have experienced.

[Unknown01]

Very interesting thoughts but contrary to the opinion of many here, I don’t believe at all that Bitcoin could stage a comeback or reach a new ATH after such a crash. At some point, it would hit a bottom and then perhaps rise a few times from there but 100k? Rather unlikely, as confidence would have been lost on many fronts. In particular, if Satoshi himself were to sell his coins, then Bitcoin would truly be dead, as that would mean that Satoshi himself was not convinced by Bitcoin.

[d5000]

Perhaps, but average Joe trades on emotions and are easily manipulated. Therefore I do not give them as much credit as you do. I believe that in such a scenario we would see a complete collapse in belief, with mostly maxis remaining.

Let's continue that line of the thought experiment. Maxis remain, they continue developing the code, and eventually the price stabilizes. Some CEXes and DEXes and some merchants also remain.

Wouldn't that refute the idea that Bitcoin has failed? The moment Bitcoin's price starts to grow again, some would begin to doubt at least. And then it's the time of the opportunity seekers, who could push the price upwards more, and then eventually some will re-enter who previously thought that BItcoin had "failed".

Fair enough, but why would this be a good thing?   Bitcoin is for everyone, including that that we may not like.

For me it would be a neutral event. But for those who don't like Bitcoin to be "controlled by Wall Street", it would be a positive sign. That's just the "maxi" scenario described in the last paragraph.

But you are the one talking about the adoption of wall street here and making a case for their exit, therefore you are trying to imply that average Joe has not adopted it enough i.e. has failed.

That wasn't my intent My argument always has been that many average Joes are adopting it wrong, only riding the speculative waves, but they're learning slowly.

If you think that 5-10% of the "developed world" population (including ETFs and CEX holders) is "very few", for a difficult to understand technology like Bitcoin, we have to agree to disagree.

If that be so, why are they not doing it with cycles? Don't tell me $1000 is some psychological number because that argument I have always seen as bullshit. It is arbitrary and has not been proven in any objective way.

Some of them already are DCAing. And all the bottoms have seen also buyers. Each bottom had buyers slightly above the previous low (in % away from ATH). Thus the $1000 bottom (much lower than all other bottoms) could also have a fair amount of buyers.

And of course $1000 is arbitrary. In this thread I see it as an example for any value below 10,000 approximately. But the $1000 mark is also a strong psychological support. Like 60,000$ was some weeks ago. Some believers and maxis will try to help for that support to hold.

We were, but didn't I then interject that it can not be directly compared because the communities are extremely different. Those services are much more easily to adopt within the Monero community because it consists of people who are more familiar with them or have a more direct need of them. The same can't be said about Bitcoin, otherwise we would have such adoption too but we don't.

Are you sure? IMO the adoption is similar (almost "all" Monero Dexes also support Bitcoin), only that in the case of Monero the percentage of "informed" users who use that services is indeed higher.

You're correct that a loss of "all" CEXes would be devastating for the current Bitcoin landscape. But I think that won't happen. If we now have 1000+ CEXes, we would remain with at least 100+ in a mega crash to $1000.

But above all to counter FUD, it is important that as long as you have some DEX protocol and at least one other coin which can apply it, Bitcoin can still be traded, even if all CEXes are gone.

You are too focused on an idealistic position, because it is a protocol it can't die. That is useless in the practical real world, that is what I have been trying to tell you. If Bitcoin loses 99.9% of its users, Bitcoin has died. No amount of attachment, idealistic positions, semantic definitions of death and protocols change that. Can it recover? Absolutely, it does not become impossible. Is it still dead? It absolutely fucking is.

For me, if it's dead then it can't recover anymore. Death is a permanent state So as long as it can recover, it is not dead. Again, if that's your position that there are types of death which are recoverable then we have again to agree to disagree.

Of course if you mean "dead" in a sense like "not cool anymore", "unpopular", "niche" or "demodée" or similar, then I agree that the word could be applied But that's not what I'm talking about here in this thread.

And Bitcoin can die completely, of course. There are some altcoins like GeistGeld or Ellaism which are dead, nobody runs a client anymore. That kind of death is (at least close to) permanent.💀

[STT]

any market activity

Not any, I recognize some volume has been inflated and not especially significant in the past.  Its been a criticism often over many years but some volume is real and the greater the time the more likely the transactions also represent real people doing trade activity they require not purely to speculate or manipulate as is sometimes the case.
 
  Markets can be inaccurate, its more often the case during rapid price changes.  A price even supressed and appearing unattractive such as now, when its been established in some range it does help to validate and recover some backing to BTC imo, presuming some of the people in BTC are real.
  We have enough failed currencies and countries to be fairly sure BTC is of genuine use, add in the continual gambling activity and much else possible some but not all of this volume helps stabilize BTC price action.

My take on recent action is we are not strong, I expected a higher price but its fallen back at the first fence and here we are once again sitting on the 50 day simple moving average but I appreciate the effort none the less.  We do have a daily higher high, humble progress but there it is.

[Ishicryptic]

When you see bitcoin attaining the level of $126,000 all-time high and still fall down to $1,000 then be rest assured that there is probability back later in the future, all we may needed to do is to hold and patiently wait till the season to rise will come, moreover in reality, we can expect that bitcoin should Fall to this stage, but when it happens with altcoin in such manner, then we should already know that there is fire on the mountain.

Do you know by what percentage Bitcoin would drop if it fell from $126k to $1k? That is a decline of more than 99% and that mean almost all of bitcoin's value has been wiped out. This usually only happens with shitcoin and when confidence in them has almost completely disappeared. If that really happens to Bitcoin, it would also mean that faith in Bitcoin has completely vanished

How can Bitcoin recover if people's faith in it has almost completely vanished? If that happens, it will be the end, and it will be time for us to look for alternative instead of continuing to patiently wait

I wonder what can plunge Bitcoin price to $1k it will mean a total lose of faith in the store of value, it can start if the whole whales suddenly decides to dump their stash on the market and weak hands will follow. But what can save Bitcoin to recovery is if profit oriented investors starts to buy up their dumped stash because a lot of investors are waiting for buy opportunities when Bitcoin will dip to a very low price, the believe that Bitcoin will always recover will make it to become bullish again after a long time. I don't look forward to such a time, I will almost say that it is impossible but then nothing is impossible,

[ultrloa]

I wonder what can plunge Bitcoin price to $1k it will mean a total lose of faith in the store of value, it can start if the whole whales suddenly decides to dump their stash on the market and weak hands will follow. But what can save Bitcoin to recovery is if profit oriented investors starts to buy up their dumped stash because a lot of investors are waiting for buy opportunities when Bitcoin will dip to a very low price, the believe that Bitcoin will always recover will make it to become bullish again after a long time. I don't look forward to such a time, I will almost say that it is impossible but then nothing is impossible,

Hard to point out which accurate condition can make those bad situation on which Bitcoin will drop at $1000.

But this is what I think the reason on why Bitcoin will drop as huge as that figure.

Macroeconimic shake out.
Global recession that might cause massive dump on Bitcoin.
Majority of people use Bitcoin lose their confidence to have it since they are afraid for massive hacking and also we can include the scamming situations.
If there's global or widespread bad on Bitcoin like all country decide to ban and eliminate its existence.

Although its quiet impossible for now that those situation will happen, also I always really think that Bitcoin will continue to be bullish and will not gonna drop as bad as the price shared by OP.

[BALIK]

Very interesting thoughts but contrary to the opinion of many here, I don’t believe at all that Bitcoin could stage a comeback or reach a new ATH after such a crash. At some point, it would hit a bottom and then perhaps rise a few times from there but 100k? Rather unlikely, as confidence would have been lost on many fronts. In particular, if Satoshi himself were to sell his coins, then Bitcoin would truly be dead, as that would mean that Satoshi himself was not convinced by Bitcoin.

Do you mean that if Satoshi sold his Bitcoin, the price would drop to $1k and it would die? And will people lose faith in it just because the person who created it has lost faith in Bitcoin?

I do not know what others think, but I will not lose faith in Bitcoin just because Satoshi lost faith and sold all. Because Bitcoin's value stems from core philosophies such as decentralization, limited supply, and censorship resistance. It is not because the creator disappeared or he did not sell his bitcoin. Therefore, I have no reason to lose faith in Bitcoin just because of Satoshi, and I do not believe he can cause Bitcoin to drop to $1k.

However, whatever the reason, if Bitcoin were to unfortunately drop to $1k. I agree with you that Bitcoin is unlikely to recover, let alone reach new record high.

[Satofan44]

Perhaps, but average Joe trades on emotions and are easily manipulated. Therefore I do not give them as much credit as you do. I believe that in such a scenario we would see a complete collapse in belief, with mostly maxis remaining.

Let's continue that line of the thought experiment. Maxis remain, they continue developing the code, and eventually the price stabilizes. Some CEXes and DEXes and some merchants also remain.

Wouldn't that refute the idea that Bitcoin has failed? The moment Bitcoin's price starts to grow again, some would begin to doubt at least. And then it's the time of the opportunity seekers, who could push the price upwards more, and then eventually some will re-enter who previously thought that BItcoin had "failed".

Are shitcoins that are still no at $0.0 and have 5 users and occasional volume considered to be projects that have not failed? They most surely are, so why would it be different with Bitcoin -- because of subjective bias towards it? Even chains that have been effectively and explicitly (!) abandoned by their foundations or companies can retain a few users or nodes here and there, sometimes even make temporary revivals (for whatever reason). They are chains that have failed.

Fair enough, but why would this be a good thing?   Bitcoin is for everyone, including that that we may not like.

For me it would be a neutral event. But for those who don't like Bitcoin to be "controlled by Wall Street", it would be a positive sign. That's just the "maxi" scenario described in the last paragraph.

Then on this point we can agree, at least on something in this thread.  I also see it as completely neutral, and Bitcoin is definitely not controlled by Wall Street because what does that even mean? It is one of those vague statements that has no precise definition or explanation, so it can't be refuted in an objective way. It is just silly. Wall Street owning how much constitutes "control" to people? 10%, 20%, 30%, 40%, more? It is arbitrary like this and usually people are just taking up the position to which their own bias mostly aligns.

I am also neutral about this, of course assuming no extreme scenarios (e.g. Wall Street owning most of the coins, nodes, and other things). It is simply unavoidable. We live in the real world, not some utopian idealistic world. Anything that becomes very valuable and useful, Wall Street will get involved into it massively.

If you think that 5-10% of the "developed world" population (including ETFs and CEX holders) is "very few", for a difficult to understand technology like Bitcoin, we have to agree to disagree.

I don't think we are at those numbers maybe unless you are counting registered accounts not active users. 

You are too focused on an idealistic position, because it is a protocol it can't die. That is useless in the practical real world, that is what I have been trying to tell you. If Bitcoin loses 99.9% of its users, Bitcoin has died. No amount of attachment, idealistic positions, semantic definitions of death and protocols change that. Can it recover? Absolutely, it does not become impossible. Is it still dead? It absolutely fucking is.

For me, if it's dead then it can't recover anymore. Death is a permanent state So as long as it can recover, it is not dead. Again, if that's your position that there are types of death which are recoverable then we have again to agree to disagree.

Of course if you mean "dead" in a sense like "not cool anymore", "unpopular", "niche" or "demodée" or similar, then I agree that the word could be applied But that's not what I'm talking about here in this thread.

And Bitcoin can die completely, of course. There are some altcoins like GeistGeld or Ellaism which are dead, nobody runs a client anymore. That kind of death is (at least close to) permanent.💀

Finally, some details that explain where the disagreement comes from.  In internet culture of these circles, "dead" usually does not mean an irrecoverable state where it is objectively impossible to recover from anymore. Why? Because when would a protocol reach this state at all? Even if it has exploits, someone could patch it up and spin up the client and it has recovered so it will practically never reach a state where it is objectively impossible to recover from this "death". So yeah, death is more often used for a massive downside in users, price, etc. Therefore, also most shitcoins are actually not dead according to your definition even many or most from the earliest circles. They are dead according to mine though. 

[dunfida]

Very interesting thoughts but contrary to the opinion of many here, I don’t believe at all that Bitcoin could stage a comeback or reach a new ATH after such a crash. At some point, it would hit a bottom and then perhaps rise a few times from there but 100k? Rather unlikely, as confidence would have been lost on many fronts. In particular, if Satoshi himself were to sell his coins, then Bitcoin would truly be dead, as that would mean that Satoshi himself was not convinced by Bitcoin.

Do you mean that if Satoshi sold his Bitcoin, the price would drop to $1k and it would die? And will people lose faith in it just because the person who created it has lost faith in Bitcoin?

I do not know what others think, but I will not lose faith in Bitcoin just because Satoshi lost faith and sold all. Because Bitcoin's value stems from core philosophies such as decentralization, limited supply, and censorship resistance. It is not because the creator disappeared or he did not sell his bitcoin. Therefore, I have no reason to lose faith in Bitcoin just because of Satoshi, and I do not believe he can cause Bitcoin to drop to $1k.

However, whatever the reason, if Bitcoin were to unfortunately drop to $1k. I agree with you that Bitcoin is unlikely to recover, let alone reach new record high.

We do have different take or perceptions or emotions when this do happen but majority would be losing up faith. Just like being mentioned that if  the creator itself sold all of his coins on his stash then it would basically means that he's not confident into his creation but well we do have all the full rights on when to sell our coins and selling out doesnt mean that we dont trust it but since we are talking about the creator itself then it would be giving out such impression and also with the negative impact if thats the case. It is totally different scenario comparing that owner selling all of his coins than into those typical investors. If ever the price drops to 1k back again then there's something wrong with Bitcoin. There might be those who will make up some buybacks and having still that solid belief towards it but majority have already lost its faith and trust and for sure tons of people who had bought on the peak had totally lost and dont want it anymore specially on considering on making up some buybacks.

[retreat]

I understand that worst-case scenarios may or may not happen, but even so, I don't think it would wipe out more than 95% of Bitcoin's value - that's almost unrealistic considering how many individuals have adopted Bitcoin. Unless it's a code failure that's no longer reliable, I think the chances of Bitcoin crashing that badly are extremely slim. And even if it did happen, people who believe in Bitcoin would hold on, preventing the Bitcoin from losing 95% of its value, though Bitcoin would still lose a significant portion of its value, and it would take time for Bitcoin to recover.

[Smartvirus]

Do you know by what percentage Bitcoin would drop if it fell from $126k to $1k? That is a decline of more than 99% and that mean almost all of bitcoin's value has been wiped out. This usually only happens with shitcoin and when confidence in them has almost completely disappeared. If that really happens to Bitcoin, it would also mean that faith in Bitcoin has completely vanished

Majority of investors in Bitcoin today does invest because of the idea that Bitcoin can never dump to 99% of its market value. Should this get be the case, without any doubt, the confidence level in using or investing in Bitcoin would drop by a multiple of the same number with lots of FUD that would be circulated to raise minds of both long term and prospective investors. It would mean no good for Bitcoin at all and skepticism wouldn’t allow Bitcoin to pull in any new investors until their is a considerable pump in Bitcoin price and valuation.

[d5000]

Are shitcoins that are still no at $0.0 and have 5 users and occasional volume considered to be projects that have not failed? They most surely are, so why would it be different with Bitcoin -- because of subjective bias towards it?

For the first question I agree, they very likely simply "failed". However the "very likely" isn't 100%, but something like 99.9%. For example there are some "shitcoins" which have probably less than 1000 users I still am observing because they have implemented some interesting concept. I'd not invest major amounts in them, but I'd continue to observe. They very likely have failed but still may recover if the stars align, but that alignment may not be very likely. (All those cases are quite old altcoins which aren't premined, so they are not dependant on a single entity which could simply run away. In the case of premined coins, the likelihood of a recovery is still much lower.)

The answer to the second question for me is the same than for e.g. gold - tradition. Bitcoin is something most people have heard about, so any glimpse of hope could lead to a full recovery. Shitcoins aren't. They're only known to a small niche, and so the recovery is extremely unlikely to impossible outside of that niche.

I don't think we are at those numbers [5-10% in the developed world] maybe unless you are counting registered accounts not active users.  

That estimation parts from studies (sources: Triple A, Crypto.com) which show that:

1) the percentage of users who "at some time in history have owned at least one satoshi" (Bitcoin or some Bitcoin-based IOU or ETF) is about 10-15% in the developed world (close to 15% in the US and some Asian and South American ["borderline developed"] countries, but only about 10% in Europe),
2) in other studies (can search source if interested, was referenced in a recend thread) about 50% of past owners claimed to still own BTC.

My conclusion thus is 5-10% in the developed world, and probably 2-4% of the entire world population.

Because when would a protocol reach this state at all? Even if it has exploits, someone could patch it up and spin up the client and it has recovered so it will practically never reach a state where it is objectively impossible to recover from this "death".

For me, the word "cryptocurrency" doesn't only include the protocol, but also the blockchain (the state of owners and coins). Thus, I would accept a cryptocurrency to be "dead" in the following cases:

1) Nobody has run the client for several years, and the blockchain data disappeared. (we could call this state "Permadeath", because it's totally irrecoverable, at least if you don't count a fresh start of the chain a recovery, but then there is confusion between "cryptocurrency" and "protocol" for me)
2) There was a long period where it's unclear if someone run the client, and it's impossible to re-construct if the blocks created in that era weren't caused by some attack. For example, the chain could have been stalled for several months when the last miner abandoned it (let's say at block 100000), and someone who mined until few weeks before that "last block" (e.g. until block 90000) builds a chain from his own block database again ignoring the blocks between 90000 and 100000.  This case is maybe (extremely unlikely) recoverable but I would still accept it as "dead" because the clear link to the genesis block is broken and thus it is not a consistent blockchain anymore.
3) Even a protocol can die: we can assume that "the protocol is dead" if the protocol depends on some software features which are seen clearly as obsolete. I'd say a protocol dies if it isn't used for about 20 years.

So yes, a cryptocurrency can die. A protocol can die too. However, there's still a difference with most other assets: the cases of a "cryptocurrency death" imply a complete loss of users during some time. While a stock can die even if it's traded until the bankruptcy of the company.

[Webetcoins]

Do you mean that if Satoshi sold his Bitcoin, the price would drop to $1k and it would die? And will people lose faith in it just because the person who created it has lost faith in Bitcoin?

I do not know what others think, but I will not lose faith in Bitcoin just because Satoshi lost faith and sold all. Because Bitcoin's value stems from core philosophies such as decentralization, limited supply, and censorship resistance. It is not because the creator disappeared or he did not sell his bitcoin. Therefore, I have no reason to lose faith in Bitcoin just because of Satoshi, and I do not believe he can cause Bitcoin to drop to $1k.

However, whatever the reason, if Bitcoin were to unfortunately drop to $1k. I agree with you that Bitcoin is unlikely to recover, let alone reach new record high.

Surely if Satoshi came back suddenly and sold all of his bitcoins, then the price would crash and people will get out, not all, some like you and me will stay, but many would.

However, corporations wouldn't, they do not care about satoshi, they care about bottom line, and they will buy when it is going down, so it will eventually recover, would take years but it will recover.

This is why it doesn't matter what happens, I am willing to take a risk and buy whenever a crash happens.

[Obulis]

One can even go on to speculate the end of Bitcoin but with the same force of speculation it can't happen talkless of Bitcoin hitting all time lowest of $1k. $1k from what Bitcoin is now at $70k plus would not be any different from the beginning of Bitcoin, out of speculation people who missed and are still missing opportunities to accumulate Bitcoin would want it so that after they put in a certain amount then it goes back tens of thousands.

Looking at the all time high at $120k plus and with the force of speculation, Bitcoin will hit above it's present all time high to something higher it can even be up to $150k plus.

[Lida93]

One can even go on to speculate the end of Bitcoin but with the same force of speculation it can't happen talkless of Bitcoin hitting all time lowest of $1k. $1k from what Bitcoin is now at $70k plus would not be any different from the beginning of Bitcoin, out of speculation people who missed and are still missing opportunities to accumulate Bitcoin would want it so that after they put in a certain amount then it goes back tens of thousands.

It's bullshit talk for anyone to wish or speculate bitcoin price to go down to $1k ATL from where it is now. It's just going to be another good opportunity for bitcoin haters to strongly start again their rubbish BS talks about how bitcoin it's gonna be dead. It's just an opportunity to give solidity their BS therefore creating intense panic.

If anyone finds it difficult to invest in bitcoin at the current price where there's strong assurance for price rising soon, will same people wanna buy when it's falls to $1k. Where's the logic in this?

[HustleZ]

I this scenario is just a fairytale and has no connection to reality, as a fall to $1k is just straight up impossible in the near future. This can occur sometime in the future when Bitcoin becomes irrelevant but right now it's just isn't possible. People are anticipating at least $30k and it's the rock bottom and they see it as an opportunity for buying more so i think a fall till $50k or atleast $40k is possible and at those level there will be buying at such a scale by people irrespective of how bad the circumstances are that it will return back to a good price, the people believe in BTC now and it seems impossible for it to reach $1k keeping in mind the buying that will take place at dumps.

[Satofan44]

For me, the word "cryptocurrency" doesn't only include the protocol, but also the blockchain (the state of owners and coins). Thus, I would accept a cryptocurrency to be "dead" in the following cases:

1) Nobody has run the client for several years, and the blockchain data disappeared. (we could call this state "Permadeath", because it's totally irrecoverable, at least if you don't count a fresh start of the chain a recovery, but then there is confusion between "cryptocurrency" and "protocol" for me)

So yes, a cryptocurrency can die. A protocol can die too. However, there's still a difference with most other assets: the cases of a "cryptocurrency death" imply a complete loss of users during some time. While a stock can die even if it's traded until the bankruptcy of the company.

The problem with this is that you can not objectively prove that this has happened. How can you prove that the blockchain data has disappeared? How many years is several years? What happens if after 10 years I restart the client with the blockchain data? Right, the definition of this kind of death is also arbitrary because it is not permanent either. We can make statements about in which case we would consider it permanently dead, but they are not of much use if we can't prove that such a thing has happened. Therefore, I consider my idea of "death" or in your wording "failure" to be better reflective of what can and does happen with these things.

3) Even a protocol can die: we can assume that "the protocol is dead" if the protocol depends on some software features which are seen clearly as obsolete. I'd say a protocol dies if it isn't used for about 20 years.

Again, arbitrary cut off point decided by you. That is not much different than someone considering a decline in price by 99% to be death either.  

I this scenario is just a fairytale and has no connection to reality, as a fall to $1k is just straight up impossible in the near future. This can occur sometime in the future when Bitcoin becomes irrelevant but right now it's just isn't possible.

Don't write generic nonsense like this here, you completely missed the point of the thread. Nobody is talking about the near future or now, and whether it can be done now or not according to you is irrelevant. Things happen all the time that we think can't or won't happen. Learn how hypothetical scenarios work, rise above your IQ limitations.
It may sound a bit rude to you say it explicitly like this @d5000, but perhaps you were not aware of this. A huge % of humans are unable to consider hypothetical scenarios at all, as in they do not have the cognitive capacity to do so regardless of what the hypothetical is. It has been well established in academic. Crazy world, isn't it? This is why many of these threads do not get responses, and if they do most of them are pretty shitty.