What's wrong with Bitcoin? Andreas Antonopoulos gave the answer two months ago

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.

bitcoin

Antonopoulos: Bitcoin investors "don't realize" possible collapse

"What I don't think most people realize is that at least initially, cryptocurrencies will plummet."

He says:

"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."

1

(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.

Antonopoulos concluded:

"Everything reflects that we only have a small lifeboat, but there are very, very many people in need."

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

How does the derivatives market fight on the platform of the 5-year-old exchange?

Derivatives trading has become a battleground for the military, and OKex, Huobi, Gate, Fcoin, which are well-known ex...

Blockchain

Research Report | Exchange Industry 2019 Q1 Report

In the first quarter of 2019, the digital clearing exchange industry changed dramatically. After a long bear market i...

Blockchain

Viewpoint | Exchange is the public chain platform

If 2019 is almost a stand-alone platform currency, let me think about " What is value capture? " and "...

Blockchain

The money was not earned, and the head was almost bald: interview with the boss of the startup exchange

Currently, one of the most profitable industries in the cryptocurrency sector is the exchange. According to The Block...

Blockchain

After carrying a huge debt and shutting down TradeBlock, the former crypto empire DCG is now struggling for survival with one arm.

As the liquidity crisis in encryption erupted, the market declined, and the previous blind expansion and investment h...

Blockchain

Market Weekly | The market is in a consolidation period, and the exchange has picked up

Weekly summary Last week, the average daily market value of global digital currency assets was 326.973 billion US dol...