TL;DR
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Shares in San Francisco-based First Republic Bank plummeted yesterday morning after a rough quarterly report.
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More than $100 billion was written off accounts in March alone, raising concerns about a “Silicon Valley Bank 2.0” situation. As a result, Bitcoin jumped in price.
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Bitcoin is perfectly designed to protect against disastrous flaws in our modern monetary system. Think: hyperinflation and the banking system collapses.
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Making BTC similar to the baseball bat you keep under your bed. You’re glad it’s there – but you Real don’t want to have to use it.
Full story
Remember the whole ‘2012 = the end of the Mayan calendar = the end of the world’ debacle?
A number of people feared that because the Mayan calendar stopped tracking events in 2012, the world would end.
It was weird.
You got the sense that people who had accepted the theory would somehow like to be proven right… which would mean seeing the end of the world.
There is a parallel here with Bitcoin.
Much of what it is perfectly designed against is catastrophic flaws in our modern monetary system.
Think: hyperinflation and the banking system collapses.
The idea is that: if currencies hyperinflate to the point of becoming worthless, and banks go bankrupt en masse – people will buy Bitcoin to protect their wealth.
(Pushing the price up).
Are you starting to see the parallel with the Mayan calendar? To be right = something bad must happen.
Now it’s not a perfect analogy – because Bitcoin can absolute grow in value without ‘the bad’ happening.
That said, we are starting to see patterns in which Bitcoin is seen as a safe haven from flaws in the traditional financial system.
And unfortunately we have another example of that today.
Shares in San Francisco-based First Republic Bank plummeted yesterday morning after a rough quarterly report.
In fact, more than $100 billion was written off accounts in March alone, raising concerns about a “Silicon Valley Bank 2.0” situation.
As a result, Bitcoin jumped.
