Will a currency crisis be the next catalyst for bitcoin?
What will be the next catalyst for bitcoin?
With a bitcoin ETF shelved for now, could something else perhaps serve as a catalyst for increasing bitcoin prices?
That something may be a currency crisis.
Check out what happened to the price of bitcoin during several other rocky periods for major currencies:
(Source: https://twitter.com/BKBrianKelly/status/1027960904892264448)
As you can see, bitcoin was seen as a store of value in times of turmoil.
Why does that matter now?
If you have not heard by now, President Donald Trump put a fresh round of tariffs on several Turkish exporters.
A move that has seen the local currency, the lira, fall by roughly 20% against the dollar in a very short term. Though keep in mind that the lira has been weakening for some time now.
(Source: https://twitter.com/schuldensuehner/status/999158596276510721)
At the same time volumes at local Turkish bitcoin exchanges surged.
Local exchanges have been reporting more than double the normal trading volume over this time period.
Things have gotten so bad that the President of Turkey released a statement asking for his people to remain calm amid currency drop, and urges people to change foreign money into local lira.
Come again?!
Yes the president of Turkey has asked for his people to sell their dollars, precious metals, and other foreign currencies for the local lira in order to help prop up the currency.
As you can imagine, any time the president has to ask for that kind of help for their currency, it's likely not in very good shape.
A store of value?
People are rightfully fleeing to bitcoin in order to preserve some of their wealth.
Again, bitcoin is showing its value as a global reserve currency/commodity.
A global store of value.
Will this and other fiat currency issues be the start of the next catalyst for bitcoin?
We shall see.
Stay informed my friends.
Image Source:
Follow me: @jrcornel
The sad makes me sick, I try hard to stay off it.
Not a bad strategy.
So, when are we going to get some good news? A currency crash might help BTC, but the downside could be worse for the global economy if Turkey shits the bed. Keep us posted my friend 🧐
Bitcoin has never existed during a global recession. Though, gold does pretty well during those times, so perhaps bitcoin holds up as well.
I feel like this may be a cause to increase bitcoin again , bitcoin always needs a reason
Posted using Partiko iOS
Well at least I think it's why BTC is holding pretty steady price while everything else is down double digits today.
Ya gotta park your money somewhere, when the collapse happens.
We all know there isn't enough gold to go around - it's all eaten up with paper contracts.
It has to go somewhere...crypto and real estate seems to be the only options if you aren't punting on commodities..
Good point. A flight from fiat is a gain for everything else. Bitcoin likely is one of those now.
That's what I'm betting on at least.
Looks like market is crashing xD
Congratulations @jrcornel! You have completed the following achievement on Steemit and have been rewarded with new badge(s) :
Click on the badge to view your Board of Honor.
If you no longer want to receive notifications, reply to this comment with the word
STOPCool. What do I do with these?
It makes sense as no centralized organization or government can manipulate bitcoin or decide to print more to offset the need of currency. It may be the best way to store value in the short term and with transaction costs being as low as they are, bitcoin and crypto may be cheaper to store value than moving into other fiat currencies or commodities.
Very good point. That has to be appealing to many countries without stable currencies.
Congratulations @jrcornel! You have completed the following achievement on Steemit and have been rewarded with new badge(s) :
Click on the badge to view your Board of Honor.
If you no longer want to receive notifications, reply to this comment with the word
STOPI feel like I have seen this badge before...
well that could act as a catalyst but would make economy more scarier than ever not a great analyst but just my thoughts
It’s obvious that people will try to find new store of value in case if their national currencies will start falling. Personally t I’m keeping part of my money in crypto. I’m not sure that this is the best strategy so far as Bitcoin has chances to fall. For example in case of bad news like refusing of ETF, as we can see now. However, crisis of traditional financial system will force more and more people to look for new money like cryptocurrency. I’m happy that I don’t have too much money so I can’t lose it, lol :D It’s just interesting to observe this price rollercoaster.