Did the Silicon Valley Bank Crash Trigger a Bitcoin Adoption Surge?
Bitcoin came in to revolutionize the financial sector. With SVB's collapse, will Bitcoin adoption surge again?
Bitcoin is a word that sparks a range of different emotions for the public. For blockchain and Web3 enthusiasts, it sparks joy and excitement. For a trader or miner, it can spark anxiety or hope. Meanwhile, to investors it could open a new path to financial freedom, while on the other hand, to traditional bankers, it could spark fear and uncertainty. These are all excellent emotions to have been incited by Bitcoin. After all, Bitcoin made its debut right around the financial crisis of 2008.
You see, the reason for this timing is because of the mission that Bitcoin was on. Its creator, the anonymous Satoshi Nakamoto, built the Bitcoin network to give the masses the right to transparency and information when it comes to their finances. Before Bitcoin, one had to choose to trust a faceless bank and have faith that their assets would be held safely. However, banks had their own plans for funds, where they would loan it without notifying its owners.
For a while, this worked, until eventually banks overdosed on credit. A lot of funds went missing because there was no record of them being loaned. Even if there was, this record was hidden away from public eyes. Eventually, the public lost faith in the traditional banking system. Thus, Bitcoin stepped in with its promise of transparent transaction with the added bonus of immutability and anonymity. Now transaction records can never be manipulated and every asset is accounted for without spilling personal data. Bitcoin created a win-win situation for the masses by eliminating the middleman.
Of course, this did not seem to bode well for banks and other third-party financial services. But, they had time to recover as Bitcoin was still in its infancy. As banks scrambled to re-establish themselves and win back the support of their customers, Bitcoin was just getting started. It all began when the first Bitcoin Block was mined in 2009 by Satoshi Nakamoto. After mining 1.1 million Bitcoin, Satoshi disappeared. After this, we began to see more blocks joining the Bitcoin network.
It took a few more years until the value of Bitcoin rose to above $1. After Bitcoin's first halving in 2012, its value rose again. In the following years, the price of Bitcoin soared higher and higher until it hit $17,000 in 2017 and then $69,000 in 2021. During this time, Bitcoin brought in a lot of changes. In fact, it began a sort of financial revolution and brought hope to the masses, especially for those who never thought they could reach financial independence due to limitations faced in the banking sector.
For many, it is a challenge to own a bank account. In some parts of the world, only a fortunate few have the means, such as the right documentation, familial approval, age barriers, and starter funds to open a bank account. All these barriers are removed with blockchain technology. Now anyone with access to the internet and some funds can own cryptocurrencies such as Bitcoin.
After the popularity of Bitcoin, many other cryptocurrencies also made their debut, thereby further boosting mass crypto adoption. Their impact was so strong that banks, despite being threatened, scrambled to provide crypto-centered services to their clients. Yet, even after all this rapid growth, a huge chunk of the population remain skeptical. This is because of the lack of relevant resources available to the public.
Initially, cryptocurrencies, even Bitcoin, were used to scam the public. Authorities saw many crypto-related cases spring up as scammers took advantage of the early confusion and lack of awareness to trick many into giving up their savings. This is one of the biggest reasons behind the call for authorities to craft fair regulations for crypto services. A call that has sadly led to nations taxing crypto transactions and is actually hurting the industry instead of helping it.
You see, even now, Bitcoin is misunderstood, as not many have the knowledge or understanding of what Bitcoin is, what it does, and how one can use it. To comprehend the Bitcoin philosophy, many big players in the market, such as Binance, hold events and free educational courses to assist the masses in attaining financial freedom. The crypto revolution is rapidly gaining momentum. So much so that nations have begun to adopt Bitcoin as legal tender and are mining Bitcoin to use gains to fund national welfare plans. The true potential of Bitcoin is still being explored and will eventually come to light.
This is true now more than ever as economists anticipate another financial crisis heading our way. A prediction that is already coming into action with the collapse of traditional banks in the USA. The fall of the Silicon Valley Bank may just be the first incident to cause a ripple effect that could lead to a massive financial crash. Already, other traditional banks are being affected and crypto services are coming in to aid those affected. Following the crash, the price of Bitcoin jumped significantly. Much like during the pandemic where people put their faith in crypto over traditional investment options, this collapse may lead to another bull run for Bitcoin and other cryptocurrencies.
Can you feel the coming of significant change? If you've heard it from an economist or an astrologist, a huge shift seems to be coming our way. We've already seen how spaces like Twitter is trying its best to cope with surprises. Whose to say which sector will collapse next? Will it be housing or entertainment? It should be very exciting to see, because big changes often bring in big opportunities. Pop senses this shift and is prepared to empower creators and users alike.
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