Bitcoin (BTC), the controversial digital currency, is finally getting the attention it deserves from the mainstream financial system. With Silicon Valley Bank’s collapse on Sunday marking the largest bank bust since the financial crisis of 2008, and with the closure of Signature Bank on Monday, the price of bitcoin has risen by nearly 20% in the past 24 hours.
Those who believe Bitcoin is a viable alternative to the established banking system will rejoice over its recent success. Bitcoiners who stuck it out through the so-called crypto winter are celebrating as the KBW Bank Index drops 10% in a single day and Wall Street titans call for another government bailout.
“Our economy will not function effectively without our community and regional banking system,” Bill Ackman, one such Wall Street titan, tweeted Monday. That’s why @FDICgov needs to guarantee all deposits in writing right now. Timing is crucial.
Who wants to feel some pain and suffering?
The recent price increase in bitcoin is no indication of its future value. With a 65% drop from its peak, the currency’s price has remained notoriously unpredictable. Monday’s bitcoin rally, however, is a welcome change for those who have been following the cryptocurrency despite the financial establishment’s persistent negative outlook.
On Monday, at least three prominent Bitcoin advocates publicly tweeted their satisfaction.
A Bitcoin exchange called River tweeted, “We are seeing a huge flow of new customers. More and more people are beginning to understand the significance of “sound money” with no counterparty risk.
We are seeing a huge flow of new customers.— River (@River) March 13, 2023
People are realizing the importance of sound money with no counterparty risk.#Bitcoin
Translation: “We told you so.”
The CEO of Swan Bitcoin, Cory Klippsten, told the world about the popularity of trading activity on the exchange: “HUGE volumes at Swan over the past 72 hours.”
HUGE volumes at Swan over the past 72 hours.— Cory Swan.com LET'S RUN #Bitcoin (@coryklippsten) March 13, 2023
If you have a business and you're wondering how to incorporate BTC to your treasury strategy, DM me.
Bitcoiners, please retweet this for visibility — people need to know a solution exists.
Jack Mallers, the creator of the bitcoin app Strike, couldn’t resist a little bragging either: “cant bankrun sats [sic]. record volumes at strike. stack em 24/7. stack em with as little as $0.01. stack em directly to your custody.”
cant bankrun sats— Strike (@Strike) March 10, 2023
record volumes at strike
stack em 24/7
stack em with as little as $0.01
stack em directly to your custody
this is why we #bitcoin
The irony, the irony. Traditional banks are having a hard time keeping their customers’ trust, which has made the decentralized system of bitcoin seem more appealing. The mysterious inventor of bitcoin, Satoshi Nakamoto, once said, “The root problem with conventional currency is all the trust that is required to make it work.” Well, it seems that the trustless nature of Bitcoin has its own appeal.
Of course, much work remains before bitcoin can be seen as a viable alternative to established financial institutions. At least for the time being, bitcoiners can shake their heads in disbelief as the banking system again looks to the government to save it.
After this, who can joke around?