Two days on from the events of Thursday March the 12th 2020 and I thought I would give my opinion on what happened.
If I am honest, the reaction of people within the crypto space on Twitter and Reddit has surprised me. I appear to be surprised that they are surprised that Bitcoin lost so much of its value in one day.
How can this be surprising?
Bitcoin lost years of adoption due to the actions of Blockstream who purposely sabotaged Bitcoin's ability to scale by limiting the big blocks in Bitcoin and being set on trying to convince people that Lightning would be the solution that allows Bitcoin to scale for the world....Yep, we're still waiting on that.
Store of Value Narrative
We can't just decide something is a store of value because a group of people declare it is, first we must prove ourselves to be a means of exchange which is where Bitcoin Cash is at this moment in time.
Core supporters are living in a separate reality where Bitcoin is the be all and end all presumably because they live in a Bitcoin echo chamber where any opinion to the contrary is censored.
Let's get real, Bitcoin (BTC) has failed and Bitcoin Cash is rescuing the original vision of Bitcoin. Each day we are one step closer to becoming a real global peer to peer electronic cash with adoption increasing all over the World.
The Current Market
The vast majority of people invested in Bitcoin, Bitcoin Cash and other crypto currencies are simply speculators. Speculators are good don't get me wrong however we need more people invested in BCH for the long run and have more people buy into the vision of Bitcoin Cash and accept that we must go through volatility to get to a point where we can start swallowing up the traditional finance industries.
We are probably better off today than we were last week even though the price doesn't reflect it, we took an absolute battering but we are still here. Hopefully the coins sold in a panic went from weak hands to strong hands and we are at least a little bit more resilient to a mass selloff in the future.
What Comes Next
Nobody can predict the market and what happens next however I would not be surprised if things get worse before they get better, not just in crypto.
It is very likely that when the peak of COVID 19 hits the economy will take another downturn as productivity in the US and Europe reduces.
The printing of infinite money can't continue and perhaps this is what finally bursts the bubble that has been expanding since 2008.
Let's not get too focused on short term price movements and remind ourselves we are still VERY early into this but as each day passes we grow as an ecosystem and we become better positioned to capitalise when a global downturn or recession occurs.
Stay safe and take care everyone!
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