Bitcoin is in a Crypto Crisis, But Can Never Be Declared Dead as It is Borderless and Lawless
Even though bitcoin seems to be in crisis mode, there are those who take the position that it can never come to a final end because it is an electronic currency that will always exist. However, the fact that it exists does not mean that it is operational.
In any event, at this point, the cryptocurrency market has lost $700 billion recently and many are wondering how to go forward. There are those who see this as a bubble, and others who are pointing to it as bitcoin simply being under attack. The latter category points to central banks and their own efforts in the past of defending fiat currency during periods of selling pressure. Those who do not have enough resources to weather the storm, but those who do have the resources will come out victorious.
In this case, it may be that bitcoin’s best bet is to push the cryptocurrency community to come together to protect its investments. There is another instance in which this type of banding-together has occurred. In 2014, during bitcoin’s post-bubble stagnation and then a selling order, those supporting the cryptocurrency industry absorbed the sale and allowed the cryptocurrency to weather through.
But, today may be different. The market is markedly different, especially with centralized actors such as largescale mining operations and exchanges that have 500 addresses in millions of dollars-worth of bitcoin. These groups do not see the value of the cryptocurrency community and thus, do not have the push it takes to rally it together to support bitcoin.
There are some cryptocurrency entities that are trying in their own way, though. For instance, Tether, with its central-bank strength, may be able to handle heavy-selling of bitcoin. The platform is also supported by fiat currency and as a result, it may not be as vulnerable to the volatility in the cryptocurrency market. Some are seeing Tether’s approach as a capitalization on the cryptocurrency market. In June, a research paper was released, and it suggested that Tethers flood the market at the time bitcoin’s price falls, thus promoting a decline.