When the news of Silvergate’s 10k BTC delay broke, the price of Bitcoin dropped 5% in 20 minutes. Now, with the announcement of Silicon Valley Bank’s failure, investors are panicking even more. But instead of continuing to drop, Bitcoin has skyrocketed 15%. What is going on?
The answer lies in the 2008 global financial crisis. Back then, people had no way to hedge against the collapsing financial system. Today, Bitcoin is giving them that option. Bitcoin was literally created for this very purpose. Satoshi Nakamoto, Bitcoin’s anonymous creator, embedded a London newspaper headline into the first block to emphasize the significance of this event.
People may be worried that the bank failures will affect their ability to purchase Bitcoin in the future, but that’s not the case. Bitcoin works all the time, everywhere in the world. It can’t lend out, invest, gamble, dilute, debase, freeze, or seize your assets like a bank can. If you’re worried about losing access to your money or investments, Bitcoin is a safe bet.
In a nutshell, Bitcoin was created to protect people from the banks and governments that can’t be trusted with their wealth. Bank failures and money printing have proven that the system is broken, and Bitcoin provides a viable alternative. Bitcoin is the safe haven that people have been looking for, and now they have it.