The price of bitcoin, rising in the face of the ongoing banking crisis, appears to be correcting what Bitcoiners already knew.
This is an editorial opinion by Robert Hall, content creator and small business owner.
The events of the past few weeks have rattled investors and regional banks. More importantly, people who work and keep the economy running are starting to question whether their bank deposits are safe. Fears of more bank runs following the collapse of Silicon Valley Bank (SVB), Signature Bank, Silvergate Bank and Credit Suisse are rife.
And this fear is not unfounded, if you ask me. For example, when you turn on the TV and see that First Republic needs a $30 billion bailout to stay afloat, it does not inspire confidence in the banking system. And more banking chaos can come. Legendary investor Michael Burry believes that two other banks could be in trouble at Comerica Bank and US Bancorp. In essence, these banks are in the same position as SVB. The possibility of more bank bailouts is increasing every day.
Above all, the federal regulator is studying the possibility of insuring all bank deposits in the entire banking system. There are approximately $19 trillion in bank deposits in the banking system. Any talk of insuring the bank deposits of every bank in America is crazy and dangerous. Talk about throwing more fuel on the fire. I think this will make more people worry about money and spur more bank runs. The government and the Federal Reserve are playing with fire.
The Federal Reserve is reacting to the situation instead of being clear and planning ahead. This will lead to overreaction and implementing policies that may do more harm than good. It’s crazy that the fate of the economy is all in the hands of people like Janet Yellen, Jerome Powell and Joe Biden.
Do you sleep like a baby at night knowing these people are responsible for the economic fate of the planet? How we got to this place is well documented, and there is no reason to go into detail, but taking a step back makes you realize what a precarious situation we are in now.
Thank God For Bitcoin
I want to be the first to say in this chaotic time: “Thank God we have Bitcoin.” We have the certainty that our money us money. No third party will interfere and inflate the value. No third party can prevent you from accessing it. No one can stop you from spending what you want or sending it to whomever you choose.
For the first time in history, the power to transact is truly in the hands of the people. Bitcoin is the most innovative monetary technology ever created. This awareness is dawning on people as more and more people flock to the security of Bitcoin during the turmoil.
The price of bitcoin has ripped higher on the news of this recent bank collapse. As of this writing, in the last 14 days, the price of bitcoin has risen 28.8 percent. That’s a big step in two weeks. Is it safe to say that bitcoin is a risky asset in the eyes of the average consumer? It’s definitely trending that way.
Bitcoiners already know this to be true; we’re just waiting for everyone to play catch-up in real time. At the time of writing this article, it is worth just north of $28,000, and it is likely that it will not be long before there is news of another bank failure.
As a Bitcoiner, it would be great if more people know about Bitcoin and start saving their wealth in bitcoin. On the other hand, I don’t want it to happen in a way that endangers the entire global economy.
Some believe bitcoin will reach $1 million in the next 90 days! What a time to live, right?
Events will happen as expected; the best thing we can do as Bitcoiners is to continue to spread the word about Bitcoin to anyone who will listen and continue to accumulate sats accordingly.
“There are decades when nothing happens, and there are weeks when decades do happen.”
– Vladimir Lenin.
Not because I like quoting dead communists, but I think it’s appropriate for the times. 2023 could be an important year for Bitcoin and the world. Buckle up. It’s going to be a wild ride.
This is a guest post by Robert Hall. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.