One must consider why Bitcoin emerged in 2009. Also what have the central banks and the financial system been doing in the past 15 years or so.
Tag: Bitcoin
One Final Shakeout?
MIchael Saylor is the CEO of MicroStrategy, a company that is heavily invested in Bitcoin. Owning shares of MicroStrategy is one way of participating in the crypto market without buying ETFs or Bitcoin itself.
This is a presentation given by Michael Saylor on money and economic development, as well as the role of Bitcoin and blockchain technology, from a historic perspective.
The video title says the gold rush starts NOW, but there could be a final shakeout coming.
The ECB dropped rates by 0.25% this week and the Fed will lower rates this comng week. Depending on whether the rate decision is 0.25% or 0.50%, markets may provide a strong reaction.
How low? BTC could even go to the 45k level. We will see.
Will Bankruns Take Place?
The Federal Deposit Insurance Corporation (FDIC) has placed 63 lenders on its Problem Bank List. These institutions are at risk of insolvency.
The FDIC holds only 1.35% reserves, meaning there is a critical point where practically the entire banking system collapses. This applies to the European banking system as well.
If bank customers decide to bring their money into safety, a lot of the capital will find its way into precious metals and cryptos, with Bitcoin dominating the crypto market (around 55%).
There was a leaked video from an FDIC meeting where bankruns were discussed, but it has been removed from the internet. In the discussion FDIC officials confirmed that bankruns would of course take place.
Central banks and other financial institutions have the option to place all bank deposits on to a blockchain to handle liquidations and they are also working on an On-Demand-Liquidity tool, on the blockchain. Subscribers will receive more information on tis and other developments. Signups will be available in the coming week.
The Only Thing That Could Break Bitcoin: Quantum Computing
The cryptography used in Bitcoin is secure. For now. In the future, a quantum computer could take over the network and basically render it useless. Some researchers suggest fully functional quantum computers could be 15-20 years away, but due to advances in technology this could be sooner.
US, UK accelerate quantum computing programs after China breakthrough.
Coin Telegraph
Quantum resistant blockchains already exist One example is CellFrame. It could also be possible for the Bitcoin mining community to run a a quantum resistant protocol over the network in order to make it secure.
It is good to keep an eye on these developments even if the risks are long term.