Bitcoin News: Raoul Pal, Bitcoiner and founder of both Global Macro Investor and Real Vision Group, states in a tweet that the cryptocurrency market has grown tremendously. The purpose behind the creation of cryptocurrencies like Bitcoin was to create the best competitor against leading currencies like the USD while also challenging the existing traditional financial money system, as explained in the Bitcoin whitepaper.
Bitcoin may have just passed a necessary stress test
This year, with Bitcoin reaching new highs, the market generally agrees that Bitcoin has matured as a top asset class and is on its way to disrupting the financial space. However, as unexpected as it may seem, the recent market drop is seen by some prominent players as proof that the market is as inconsistent and unstable as many claim. In fact, it’s the opposite for Pal and her colleagues, who explain why the market might be well positioned for a global change.
Over the past two weeks, Bitcoin and many other digital currencies have fallen by over 40%. Bitcoin has lost its position as a trillion dollar asset. According to Pal, Bitcoin may have undergone an “EXISTENCE” shock test.
With the collapse of the market, Cryptocurrency players experienced intense panic. While a lot of bearish news was on the cover pages of the magazine, underneath the chaos was a stable Cryptocurrency market. Most of the market remained solid throughout the storm.
Cryptocurrencies confirm regaining global dominance as the market recovers
The market also did not rely on higher authorities such as the Feds to maintain balance. Despite the short interruption in exchanges and other cryptocurrency companies, there was a recovery again soon after. Large exchange losses and network protocol errors were not recorded during the bloodbath.
As a result, the performance of the market reflects the difference between the traditional market and the crypto market and its structural impact on both industries. Usually, the traditional market struggles to cope at times like this, but with Crypto as explained above, the situation shows the opposite.
It’s important to keep Pal’s thoughts in mind going forward:
“This is what I saw in crypto for the first time in 2012.
A new non-fragile financial system that is unbroken in times of stress, where ownership of assets is clear and losses are not shared with taxpayers. What happened today and in 2012 were two big weeks for crypto and the future financial system.”