Bitcoin's fall due to financial turmoil is obvious to an evangelist in the field-he had predicted it two months ago.
In the What Bitcoin Did podcast on January 3, Andreas Antonopoulos clearly saw the impact of a recession or similar event.
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Antonopoulos: Bitcoin investors "don't realize" possible collapse
"What I don't think most people realize is that at least initially, cryptocurrencies will plummet."
"The reason it will plummet is that many VCs, corporate investments, and personal private investments are based on cheap currencies, disposable income, and excess cash in the portfolio, etc., like other parts of the economy, will dry up. "
His words predicted the madness of the market this week. After some markets experienced the worst day since 1987, Bitcoin plunged 60% on some exchanges to a low of about $ 3,600.
While commentators were busy explaining the phenomenon, Antonopoulos seemed ready to deal with the situation.
"When people are afraid, when there is such a recession, they will withdraw their investment, and they will withdraw their investment in cryptocurrencies."
(Bitcoin Derivatives Trading Volume on March 12)
Economic Titanic Moment
He pointed out that in January alone, bitcoin would need approximately $ 18 million in purchases per day to maintain parity.
"From this perspective, I think if we go through a recession, the first-order effect is the collapse of the cryptocurrency, because all liquidity has dried up, which is a typical impact and symptom of a recession.
Since then, bitcoin has the opportunity to become a safe haven, but the relative difficulty of non-tech investors in acquiring and storing bitcoin may pose obstacles to its popularity and price stability.
"Everything reflects that we only have a small lifeboat, but there are very, very many people in need."