The bear market ironically proves that Bitcoin is the future of money ⋆ ZyCrypto
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Bitcoiner and founder of Global Macro Investor and Real Vision Group, Raoul Pal, reflects in a tweet the growth of the cryptocurrency market. The goal behind the creation of cryptocurrencies like Bitcoin was, as explained in the Bitcoin white paper, to launch a leading competitor against major currencies like the USD, as well as to challenge the existing traditional financial monetary system.
Bitcoin may just have passed a necessary stress test
This year, with Bitcoin reaching new levels, the market generally agrees that Bitcoin has matured as a leading asset class and is poised to disrupt the financial space. However, the recent market downturn, as unexpected as it may sound, is seen by some major players as proof that the market is as inconsistent and volatile as many people claim. In fact, the exact opposite is the case with Pal and his counterparts as they explain why the market may be well positioned for a global takeover.
Over the past two weeks, Bitcoin and many other digital currencies have fallen by over 40%. Bitcoin has lost its trillion dollar asset position. For Pal, Bitcoin may have just undergone a VAR shock test.
With the market collapse, an intense panic on the part of the cryptocurrency players came. While plenty of bearish news covered the tabloids, beneath the chaos lay a stable cryptocurrency market. Most of the market remained firm throughout the storm.
Cryptocurrencies Reaffirm Global Dominance As Market Corrects
Nor has the market relied on higher authorities like the federal government to keep the balance. Despite the near-term breakdown of exchanges and other cryptocurrency companies, a recovery followed shortly thereafter. Major exchange losses and network protocol failures were not recorded in the middle of the bloodbath.
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In conclusion, the market performance reflects the difference between the traditional market and the crypto market and the structural impact it has on the two industries. Usually the mainstream market struggles to cope with times like this, but the reverse, as explained above, is the case with Crypto.
Pal’s conclusive thoughts are important to keep in mind for the future:
“This is what I saw for the first time in crypto in 2012. A new anti-fragile financial system that does not break in times of stress, where asset ownership is clear and losses are not pooled with taxpayers. It’s been a big two weeks for crypto and for the future financial system. ”