An ad truck featuring a male model synthesized with the face of Federal Reserve Chairman Jerome Powell holding a piece of paper that reads “Buy Bitcoin” appeared outside the headquarters of SVB Bank in the United States, providing a Did-It-Happen moment for Bitcoin maximalists and cryptocurrency enthusiasts.
Bitcoin surged 30% in a short time after the SVB crash, reinforcing the logic of the Bitcoin camp that it is an ‘alternative investment’ that emerged as a hedge while the banking crisis was not suppressed, and the stock price of banking stocks plummeted.
Bitcoin is a decentralized digital currency that can be sent from user to user on a peer-to-peer network without the need for intermediaries. It does not rely on trust and is immune to central bank and government failures. Anyone can pay with Bitcoin whenever and wherever they want, making it a popular option among cryptocurrency enthusiasts.
The cryptocurrency market is going through a ‘back to basics’ moment, according to Ryan Watkins, co-founder of Synchrash Capital. Bitcoin is leading the narrative that it will be an alternative to money, and Ordinals Protocol is re-emphasizing the block size problem. Ethereum is expected to show better performance ahead of the Shanghai upgrade.
Bitcoin is based on Proof of Work (PoW). Other proof-of-stake (PoS) coins, such as Ethereum, are exposed to securities risk. Securities and Exchange Commission Chairman Gary Gensler recently argued that proof-of-stake coins are securities. As an alternative investment, Bitcoin is free from securities attacks.
While some skeptics argue that Bitcoin is still useless and does not function as exchange, value measurement, or value preservation, they do acknowledge that cryptocurrency enthusiasts are better than central bankers. Rob Arnault, founder of Research Affiliate, said, “I am a Bitcoin skeptic. But I think crypto enthusiasts are still better than central bankers who are horribly incapable of offering any alternatives. Bit maxies are dreaming of a very passionate goal.”
A cryptocurrency activist who drove a Bitcoin ad truck to the SVB headquarters told Bloomberg, “Currently, a broken financial system is the best marketing for Bitcoin. The Fed is the best advertiser.” This highlights the sentiment among Bitcoin maximalists that the traditional financial system is broken and that Bitcoin provides an alternative solution.
The uncertainty in the financial market is yet to see the majority of retail or institutional investors entering the cryptocurrency market. However, the changed liquidity environment is good for risk assets, particularly for Bitcoin. Cryptocurrency analyst Noel Acheson said, “What drives the price of Bitcoin now is the changed liquidity environment. It is a good environment for risk assets, especially for Bitcoin.”
In conclusion, the ad truck outside the SVB Bank headquarters has given Bitcoin maximalists and cryptocurrency enthusiasts a Did-It-Happen moment. The surge in Bitcoin’s price after the SVB crash has reinforced the logic of the Bitcoin camp that it is an ‘alternative investment’ that can hedge against a banking crisis. While skeptics argue that Bitcoin is still useless, they do acknowledge that cryptocurrency enthusiasts are better than central bankers. The cryptocurrency market is going through a ‘back to basics’ moment, and Bitcoin is leading the narrative that it will be an alternative to money.
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This article was republished from azcoinnews.com
