Yesterday was a bad day for many, but especially those in the blockchain and cryptocurrency worlds. We’re a business rather than investor publication, so the focus here is on how to build a more resilient decentralized infrastructure.
But first off, let’s get the cryptocurrency bloodbath out of the way. At its low point yesterday, Bitcoin dropped 46% in a day compared to a 6% decline for gold (also at the low point) and the S&P’s loss of 9.5%.
Bitcoin has been pitched to hedge funds, high net worth individuals and retail users as an uncorrelated store of value. Both the correlation and value narratives were disproved yesterday. But to give a balanced perspective, there are signs that in the coming days and weeks, there could be a crisis of faith in the banking system. And that may attract newcomers to cryptocurrency even though it’s anything but a safe haven.
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