user119072: Would that mean that the crypto exchanges run out of liquidity and it turns into a Ponzi scheme?

user13866: It probably means the price drops and eventually the exchange suspends trading of BTC.
Nit pick: BTC is cash. You can't convert cash into cash but you can exchange cash in one currency for cash in another currency.

user41313: In order for you to sell your BTC for fiat cash, another trader needs to be on the other end of that deal and be willing to buy your BTC in exchange for their fiat cash.
So as long as someone is willing to buy your Bitcoin for cash, it'll have a dollar value. Now, if everyone only wanted to sell Bitcoin, and nobody wanted to buy it, it would be worth $0.

119072: <p>Would that mean that the crypto exchanges run out of liquidity and it turns into a Ponzi scheme?</p>
 13866: <p>It probably means the price drops and eventually the exchange suspends trading of BTC.</p>
<p>Nit pick: BTC <em>is</em> cash. You can't convert cash into cash but you can exchange cash in one currency for cash in another currency.</p>
 41313: <p>In order for you to sell your BTC for fiat cash, another trader needs to be on the other end of that deal and be willing to buy your BTC in exchange for their fiat cash.</p>
<p>So as long as <em>someone</em> is willing to buy your Bitcoin for cash, it'll have a dollar value. Now, if <em>everyone</em> only wanted to sell Bitcoin, and nobody wanted to buy it, it would be worth $0.</p>
