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I have no real life experience of investment world.

I have read many books on investment but I don't understand how shares value could become zero and could lose all my money.

I know I'm not able to explain my question but hopefully you understand.

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  • To be honest, I wouldn't read books on investment at your level. I would instead just read a basic guide on how a stock market works. Like a basic bare bones guide will let you understand what guides a stock price, and from that you can understand under what circumstances a stock price may go very low. Mar 6, 2021 at 14:07
  • This question is difficult to answer because you're asking us to explain a fact that, to many of us, is very obvious. Why would it not be possible for bitcoins to become worthless? I'm sure you're aware that cigarette butts are worthless; what makes you think that bitcoins and shares of stock are different from cigarette butts? Mar 6, 2021 at 22:04

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Yes, a share or a cryptocurrency can become worthless.

The simplest example is when a company ceases trading. At that point any remaining assets will be sold off and used to pay outstanding debts. Any money left over will be returned to the shareholders as cash. In most cases there won't even be enough money to cover the outstanding debts, so shareholders get nothing.

With a cryptocurrency there isn't even a company with assets to sell. Many people buy cryptocurrency because they think the price is going to go up because of other people buying cryptocurrency. If everyone thinks that a particular currency is overvalued, then the price will reduce and there is nothing to stop it reducing to zero. A price of zero just means that no one wants to buy it from you, however cheaply you offer to sell it to them.

Unless you are very confident you understand the risks and what you can lose, you should always take professional advice before making any investment.

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    With cryptocurrency, there's also the risk that your particular government might decide to make it illegal.
    – jamesqf
    Mar 6, 2021 at 17:18

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