I disagree that everyone would cash out.
There have been crashes of bitcoin before. None "to zero" but pretty substantial, and not everyone "cashes out" right away.
There have been crashes of bitcoin before. None "to zero" but pretty substantial, and not everyone "cashes out" right away.
But the previous crashes weren't caused by any real news of a significant weakness of Bitcoin, so if there was news like that, then the crash would be worse than we've seen.