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The 2008 financial crisis laid the groundwork for Bitcoin’s genesis and although at first its uptake was slow, what its supporters had just witnessed convinced them that bitcoin was the future.
Jumping forwards to the present day, the world is faced with a very different type of crisis. One that centres around public health, the collapse of international supply chains, and unbelievably, country wide quarantines.
Yet so far, the global response in the West has in many ways been very similar to 2008. Notably, governments printing new money to keep the economy afloat.
Many argue this is the exact response that Satoshi wanted bitcoin to prevent.
The world is facing an unprecedented emergency, and cryptocurrency is, for the first time, being influenced by major global events.
As discussed previously, how it responds will most likely dictate its future.
In my previous post, I mentioned bitcoin’s potential as a safe-haven asset. However, narratives regarding the future of the crypto space often change – and for good reason. The true purpose of cryptocurrency is still unclear.
Are we creating digital gold, web 3.0 or un-censorable cash? Maybe it’s decentralised finance or initial coin offerings.
Or maybe having a crystal-clear narrative is not important.
In just over a decade an entirely new ecosystem has been created, stemming from one whitepaper written 12 years ago. An ecosystem that millions of people are currently watching in anticipation of its reaction to an approaching global recession.
If there’s one thing to take from all this, it’s that cryptocurrency is now too large to ignore.
Written by Max Worontschak, resident crypto expert at Skrill.
Cryptocurrencies are complex products with high price volatility. They are unregulated, without consumer or financial protections. Only risk what you can afford to lose.
For more information, please go to the Skrill Cryptocurrency Risk Statement and the Skrill Cryptocurrency Terms of Use.
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