Antifragile Bitcoin Was Born To Thrive In An Economic Crisis

[Sachinist]

Bitcoin's fundamentals have not changed and they never will. Bitcoin is the most distinguished representation of money today. It is borderless, democratic, uncorrelated and antifragile by design. For the markets to reflect this, Bitcoin needs to refocus on its founding purpose.

Read more - https://bitcoinexchangeguide.com/antifragile-bitcoin-was-born-to-thrive-in-an-economic-crisis-so-whats-stopping-btc/

[hv_]

BSV runs on same fundamentals...  Segwit not

[pooya87]

BSV runs on same fundamentals...  Segwit not

either don't complain about SegWit or first remove every trace of it from BSV then start complaining about it. you can't have both and continue benefiting from most things that was introduced by SegWit and pretend you aren't using it.

[Darker45]

I have read time and again people saying Bitcoin is made for this. Honestly, I believed in it. I believed in the Bitcoin market being independent from the fiat market and the rest of the traditional markets. And then the virus quickly grew from a domestic outbreak into an epidemic and eventually into a pandemic. Right now, it has stirred the world's norms and subsequently created a new normal. It has created a crisis, not just a health crisis but also an economic crisis, social crisis, even religious crisis. And then the graphs are showing that Bitcoin is not really something totally independent from global events and crises. This crisis right now is a test for Bitcoin and somehow it has shown the fragility of Bitcoin; that Bitcoin, although said to be a currency that counters the tendencies of the old fiat currency in the face of an economic crisis, is itself moving with the mainstream flow.

[senin]

In general, yes. Bitcoin was created after the global economic crisis as an alternative means of payment, which is not subject to inflation like traditional money. However, the current situation is different from the onset of the economic crisis. Now an unforeseen situation has occurred with the spread of coronavirus and people needed money to protect against it. To do this, they began to sell Bitcoin and other cryptocurrencies and it fell in price. Everything is logical and it is not connected with the economic crisis. If after this comes the economic crisis, we will see how Bitcoin will behave.

[Darker45]

In general, yes. Bitcoin was created after the global economic crisis as an alternative means of payment, which is not subject to inflation like traditional money. However, the current situation is different from the onset of the economic crisis. Now an unforeseen situation has occurred with the spread of coronavirus and people needed money to protect against it. To do this, they began to sell Bitcoin and other cryptocurrencies and it fell in price. Everything is logical and it is not connected with the economic crisis. If after this comes the economic crisis, we will see how Bitcoin will behave.

I think what is happening right now is a crisis with many faces or aspects. The most obvious is the health aspect, of course, as this crisis is mainly due to the spread of COVID-19 but the next obvious aspect of this crisis is the economic aspect. Right now, COVID-19 is affecting the health as much as the economy of the world. Even at the earliest days when the presence of the virus is mainly focused in its epicenter in Wuhan, China, the global economy is already significantly affected. For me, it is not one crisis following another. It is vividly clear right now that economic and health crises are happening at the same time. You cannot contain and fight this virus without hurting or sacrificing the economy.

[20kevin20]

I think what is happening right now is a crisis with many faces or aspects. The most obvious is the health aspect, of course, as this crisis is mainly due to the spread of COVID-19 but the next obvious aspect of this crisis is the economic aspect. Right now, COVID-19 is affecting the health as much as the economy of the world. Even at the earliest days when the presence of the virus is mainly focused in its epicenter in Wuhan, China, the global economy is already significantly affected. For me, it is not one crisis following another. It is vividly clear right now that economic and health crises are happening at the same time. You cannot contain and fight this virus without hurting or sacrificing the economy.

You can, if you take The Netherland's path. However, I don't think that'll last very long until they'll need to sacrifice theirs.. but each country has their own interest and now we have two choices: sacrifice the economy and save lives or save the economy and sacrifice lives. Simple as that.

Very tough times are coming. What we've seen is just a little spark of what's to come.

I had read time and again people saying Bitcoin is made for this. If I honestly say..then, I believe in it. I believed in the Bitcoin market being independent from the fiat market and the rest of the traditional markets. And then the virus quickly grew from a domestic outbreak into an epidemic and eventually into a pandemic.Now, it has stirred the world's norms and subsequently created a new normal. It has created a crisis, not just a health crisis but also an economic crisis, social crisis, even religious crisis. And then the graphs are showing that Bitcoin is not really something totally independent from global events and crises. This crisis and destruction right now is a test for Bitcoin and somehow it has shown the fragility of Bitcoin; that Bitcoin, although said to be a currency that counters the tendencies of the old fiat currency in the face of an economic crisis, is itself moving with the mainstream flow.....

Nothing is independent from the global markets in our case. If global panic starts, it starts in all the markets too.. be it the most precious materials, Bitcoin or stocks. Bitcoin is moving approximately the same path gold and silver are too if you pay close attention to the charts. As I said days ago, this is the time for Bitcoin to decide which path to take: safe haven or no?

Things will get volatile as fuck. Get used to it. It's the new normality.

[NotATether]

Bitcoin is supposed to be safe in a time of economic turmoil. But I think the reason that it's being battered the way it's doing now is not a protocol-level problem or a design flaw, it's too much concentration of coins on exchanges. There's also mining power concentration in the hands of certain companies but that is not relevant to this problem. Using this https://coinmarketcap.com/rankings/exchanges/liquidity/ to sort all the exchanges by their liquidity as I can't get hard BTC holdings for each exchange, HitBTC can liquidate 12,607 BTC, Binance can do 10,352 BTC, Bitfinex can do 8,943 BTC.

The top 50 exchanges collectively liquidate nearly 124631.53 BTC. That is 5.9% of the total BTC supply. Actually, it's worse than that, since 4m BTC or 20% of the supply is lost or inaccessible which brings their control up to 7.3% of the accessible BTC supply.

This is inaccurate but the best I can come up with because the liquidity number may include assets held in altcoins. which are not relevant in this situation. I didn't think they only held 5.9% of the total supply anyway, as that isn't enough to control supply and demand.

It is not a protocol problem and attempting to use a fork like a certain shill in this thread is suggesting will also move those coins to exchanges. Lots of people are lazy and instead of setting up an SPV client which is the recommended way of using bitcoin they use an exchange or webwallet.

[hv_]

BSV runs on same fundamentals...  Segwit not

either don't complain about SegWit or first remove every trace of it from BSV then start complaining about it. you can't have both and continue benefiting from most things that was introduced by SegWit and pretend you aren't using it.

that was done - only non-consensus / tech things are left to be removed soon

Fundamentals are as original BitCoin was designed for  - esp long term economics and legal compliance

P2P electronic cash, where coins have a trace of signatures - honest and tracable - as good money must be

... aaand most ppl did not get what SPV really is about - cause you need only miners for doing it as Satoshi designed

[pooya87]

that was done - only non-consensus / tech things are left to be removed soon

no it is not removed since i can still see it as part of the source code!
in fact nothing important has ever been changed or removed in these altcoins. only trivial things that make absolutely no difference were changed, removed, re-enabled such as useless OP codes.

... aaand most ppl did not get what SPV really is about - cause you need only miners for doing it as Satoshi designed

you included. SPV is all about communication between nodes using merkle roots and basic cryptography and block headers. the only small part where miners come in is the trust SPV nodes put in PoW being hard to attack which is not the case with BSV.

[hv_]

that was done - only non-consensus / tech things are left to be removed soon

no it is not removed since i can still see it as part of the source code!
in fact nothing important has ever been changed or removed in these altcoins. only trivial things that make absolutely no difference were changed, removed, re-enabled such as useless OP codes.

... aaand most ppl did not get what SPV really is about - cause you need only miners for doing it as Satoshi designed

you included. SPV is all about communication between nodes using merkle roots and basic cryptography and block headers. the only small part where miners come in is the trust SPV nodes put in PoW being hard to attack which is not the case with BSV.

... usless 

[gentlemand]

Dimwit article. This is a crisis crisis, not an economic one.

It has a chance of doing its thing in the aftermath when the world is getting back on its feet. Only then will we see how deformed conventional finance has become and only then is when people will give Bitcoin a closer look. Until then it's going to be blown about in the breeze like most other things.

[HardFacts]

Bitcoin's fundamentals have not changed and they never will. Bitcoin is the most distinguished representation of money today. It is borderless, democratic, uncorrelated and antifragile by design. For the markets to reflect this, Bitcoin needs to refocus on its founding purpose.

Read more - https://bitcoinexchangeguide.com/antifragile-bitcoin-was-born-to-thrive-in-an-economic-crisis-so-whats-stopping-btc/

WRONG, WRONG, WRONG   It would take longer than I have to show you how badly flawed your assumptions are....

REALITY:   BitCoins performance in its first Economic Crisis has been very bad.



 

[HardFacts]

Dimwit article. This is a crisis crisis, not an economic one.

It has a chance of doing its thing in the aftermath when the world is getting back on its feet. Only then will we see how deformed conventional finance has become and only then is when people will give Bitcoin a closer look. Until then it's going to be blown about in the breeze like most other things.

WRONG WRONG WRONG

This is BOTH a real crisis and an economic one.

REALITY:   REAL coins are not being " blown about " as you say, they are impossible to get, and if you are lucky enough to find them, you have to pay more than ever for them.  But you can still sell your BitCoins for just over 1/2 price 

Hard Facts

[DarkDays]

Wouldn't say it is completely uncorrelated....

Did you not see Bitcoin crash by almost 50% after the traditional economy took a tumble? That speaks volumes to what might happen to Bitcoin during a wartime or truly global panic.

Sure, it might technically survive, but I think it's too early to say that Bitcoin would thrive during times of economic crisis, after all, it still has its value pegged to the USD, not the other way around.

Until BTC has its own independent value, it isn't ready for this sort of test.

[johnyj]

I have read time and again people saying Bitcoin is made for this. Honestly, I believed in it. I believed in the Bitcoin market being independent from the fiat market and the rest of the traditional markets. And then the virus quickly grew from a domestic outbreak into an epidemic and eventually into a pandemic. Right now, it has stirred the world's norms and subsequently created a new normal. It has created a crisis, not just a health crisis but also an economic crisis, social crisis, even religious crisis. And then the graphs are showing that Bitcoin is not really something totally independent from global events and crises. This crisis right now is a test for Bitcoin and somehow it has shown the fragility of Bitcoin; that Bitcoin, although said to be a currency that counters the tendencies of the old fiat currency in the face of an economic crisis, is itself moving with the mainstream flow.

What can we learn from this? Why in a crisis, almost everything is dumped in exchange for the crappy fiat money that most of the people jokes about here?

There can be 2 possible reasons:

1. The liquidity of cryptocurrency market is very low, thus a little heavier sell pressure would trigger a big crash

2. Most of the traders in market are speculator, they are in it just for making fiat money, and they are always prepared to cash out to fiat money at slightest sign of danger


Anyway, it seems the religion (or the trust) on fiat money is much stronger than we had expected, although you have so many stories about hyperinflation in Germany and Zimbabwe, people still regard USD as the ultimate store of value, regardless how much helicopter money FED gives

It is time to research where does this religion on USD coming from and how to establish a stronger religion on cryptocurrency. I think it all boils down to the fact that USD is used as a standard unit to count value, this is unconsiously ironed into everybody's mind since they were born, but the effect is much stronger than Bible: As long as people unconsiously use USD to measure value, its value automatically maintained regardless of the crisis or QE

[hatshepsut93]

Bitcoin has a lot of cool properties, but none of them makes it a hedge against global economy. Limited supply alone is not enough to make it one, you need faith of the population, and currently almost everyone who isn't a bitcoiner views it as a risky asset at best and a ponzi/bubble at worst. You can only start telling that Bitcoin is a safe haven when it actually shows that it is one during a major crisis. Maybe it will happen in the future, but right now there's no such correlation.

[Fog Fence]

Bitcoin was developed as an answer to 2008 financial crisis. So many people concluded that it was made for time like this. If it's true, tell my why did Bitcoin loose its value some weeks ago?

[fiulpro]

I won't use the word non fragile , since it is also dependent on the economic situation of the whole system ,I would say it is less affected as compared to previously imagined .
People are able to use the payment system here at the comfort of their own house and the good thing is it is not hindering the overseas transfer.

In many countries where the government is collapsing and the economic situation is worsening , Bitcoins is the only thing that is helping people pay for day to day activities .

I do think one should look forward to improving the lightning network so that the instant payments are made more accessible.

[omone1]

Yes, bitcoin was created to thrive independent of the traditional economy but when humans are threatened, it affects everything. What I believe will cause bitcoin to really strive in a troubled economy like we have now is when human existence is not been threatened. See even movement and traveling are been restricted, this is unprecedented.