If collective social trust collapses, would Bitcoin's value also dissipate?

This is a very interesting question, and the answer isn't a simple "yes" or "no." It really depends on the extent to which "social collective trust" collapses.

Let's imagine two scenarios of "collapse" to make it easier to understand.

Scenario 1: Financial Trust Collapse

This situation is more akin to the "trust crisis" we currently worry about. For example, people suddenly lose trust in a country's government, believing they will print money indiscriminately, causing their currency (like the US dollar or RMB) to become increasingly worthless. Or, people distrust banks, fearing they might collapse and their savings become inaccessible.

In this scenario, Bitcoin's value would not only not dissipate, but might even skyrocket.

Why? Because Bitcoin was designed precisely to address this kind of "distrust."

• It doesn't rely on governments or banks. Its operating rules are hardcoded and unchangeable. Its total supply is fixed, unlike central banks that can print as much as they want.
• It belongs to you. As long as you safeguard your private key (which is like your password), your Bitcoin is in your own hands; bank failures or national sanctions cannot take it away.

So, when people lose faith in the traditional financial system, they seek a "safe haven." Historically, this safe haven was gold; now, many believe Bitcoin is "digital gold." People will convert fiat currencies they distrust into Bitcoin, which they perceive as more reliable. When more people buy it, its value naturally increases.

Simply put, Bitcoin's value is precisely built upon the "distrust" of traditional centralized institutions (governments, banks).

Scenario 2: Complete Civilizational Collapse

This situation is far more severe, like a doomsday scenario depicted in movies. Social order completely breaks down, laws cease to exist, electricity and the internet are paralyzed, and people revert to a primitive state of survival, concerned with their next meal and personal safety.

In this scenario, Bitcoin's value would completely vanish.

The reason is simple:

• Bitcoin relies on infrastructure. It needs electricity and the internet to operate, transfer, and trade. If these are gone, Bitcoin becomes a string of inaccessible, useless code on your computer.
• Survival is the primary need. When your life is at stake, what you need most is a can of food, a bottle of clean water, or a weapon for self-defense, not a string of numbers. At that time, tangible goods would be most valuable. Who would trade a bag of rice for your Bitcoin? It's simply impossible.

To summarize my view:

Bitcoin is like a "lifeboat" on the large ship of the financial system. When the big ship (the traditional financial system) shows signs of leaking and potentially sinking (a financial trust crisis), many people will rush to get on this lifeboat, and its value becomes apparent.

But if the entire ocean (human civilization) evaporates, and there's nothing but a barren wasteland, what good is even the sturdiest lifeboat? You can't paddle it, and there's nowhere to go.

Therefore, Bitcoin's value can be independent of trust in a specific government or bank, but it must rely on the existence of a basic modern civilization with electricity, internet, and transaction needs. If even this foundation collapses, its value will dissipate along with it.