During the first big crisis like the one we are experiencing in these weeks – partly due to the spread of the Coronavirus – bitcoin collapsed along with traditional markets and with double-digit declines even worse than the latter, which is why the question arises as to whether BTC is still considered a safe haven.
In response to these and other doubts, The Cryptonomist is organizing a series of audio interviews with industry experts to comment on the markets.
The podcast in Italian can be found here:
The audio explains that the collapse of the past days has involved all the markets, and not even bitcoin has been spared, probably because a lot of people work with leverage and many financial products have BTC as underlying, thus a strong collapse in traditional financial markets has an impact on bitcoin and also on other cryptocurrencies.
So does Bitcoin still have reason to exist? Can Bitcoin help to overcome the crisis?
We are in the midst of the Coronavirus emergency and we are facing a major crisis for which states are issuing billions of dollars as financial aid. Contrary to what happened in the past, this money will not be used to buy shares and therefore create value in the market, but will be given to companies and to workers and will, therefore, circulate in the real economy.
In this scenario, according to Schlichting, BTC would become relevant for protecting one’s assets against the weak currency, i.e. fiat currencies.
Surely this is not something that will happen tomorrow, but this is a scenario that for the CEO of Poseidon Group cannot be discarded a priori. Bitcoin is not dead, on the contrary, this crisis could lead to greater adoption of the crypto also as a payment method.