Is the Coronavirus The Black Swan Event That Crushes Cryptocurrency?

2020-3-5 22:00

Cryptocurrency, like Bitcoin, is an extremely new technology and financial asset, that hasn’t truly yet become widely adopted or proven its use case. The disruptive new fintech has incredible potential that could revolutionize the future of finance, but only if a black swan event doesn’t come along and send it to an early grave. But that black swan event may be here in the form of the coronavirus. It’s already causing traditional markets to collapse, and the high-risk cryptocurrency asset class may be next to experience a panic-induced selloff of cataclysmic proportions. The Coronavirus Has All the Signs of a Black Swan Event Bitcoin and the technology powering cryptocurrency assets was born from the last major economic recession. Newspaper headlines referencing the bank bailouts during this time are even referenced in Bitcoin’s earliest blocks. Recession-proofing Bitcoin was among the creator’s key design attributes, and include a hard-coded, digital scarcity, and a regularly scheduled reduction in supply. Related Reading | Has the Coronavirus Put an End To the Bitcoin Safe Haven Narrative?  And although the cryptocurrency certainly is equipped to withstand the collapse of fiat currencies, and perhaps provide a flight of safety for capital to flow into, the asset class may simply be too young at this point to withstand a black swan event. A black swan event is a term popularized by finance professor and former Wall Street trader Nassim Nicholas Taleb, who authored a book on the 2008 recession. Black swan events are cataclysmic events that completely unpredictable and unpreventable, and grave consequences due to how the event takes the world by surprise. The coronavirus is potentially one of those black swan events. This is what they would call a Black Swan event. — Michael Arrington (@arrington) March 3, 2020 The coronavirus in just a few short months went from an unusual, yet severe respiratory ailment, to a widespread pandemic on the verge of collapsing the economy. Transportation, a key factor in the function of any economy, has been restricted, and production and many of the world’s largest manufacturing facilities have declined as a result of the virus spreading. The death toll is sending investors into a downward spiral of panic, which prompted the largest one-week decline in the stock market since the great recession. Can Cryptocurrency Survive Its First Recession? If the stock market is tanking, and investors are selling off their assets in a complete panic in an attempt to cash out while they still can and de-risk from further decline, what might a similar selloff do to cryptocurrencies like Bitcoin should the fears hit the crypto market in the same way? Compared to the stock market, cryptocurrencies are just a flash in the pan in terms of overall capital invested and liquidity. A massive, panic selloff in crypto markets would likely not have enough liquidity to accommodate every person seeking to cash out. Last three emergency rate cuts of 50 bps: 9/11LehmanToday Wake up.https://t.co/NTjyd0aQiR — Ryan Selkis (@twobitidiot) March 3, 2020 The selloff could crush prices completely, to the point of no return. Even key crypto market executives such as Matthew Hougan, the vice president of research and development at Bitwise warns that a black swan event is possible in the cryptocurrency space. Related Reading | Stock Market, Bitcoin, and Gold: Everything Is Collapsing Together Examples of the type of black swan events that could interfere with the longevity of cryptocurrency include overly aggressive regulation, exchanges going under, or massive breaches of underlying blockchain networks. But remember, black swan events are typically unpredictable, and among the scenarios crypto investors likely never saw coming, is a pandemic wiping out their life savings and putting their lives at risk.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Global Cryptocurrency (GCC) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.00575 (-100%)

cryptocurrency new black swan event finance future

cryptocurrency new → Результатов: 126


New Details About India Banning Cryptocurrency Emerge — Crypto Community Sees Mixed Messages

New details have emerged suggesting that the Indian government will go ahead with banning cryptocurrency, in contrast to what the crypto community believes. In her latest interview regarding cryptocurrency legislation, India’s finance minister said that there will be a window for experimentation for cryptocurrency, blockchain, and fintech.

2021-3-16 13:30


Bitcoin Explodes Above $44K After Tesla Buys BTC: What’s Next?

Bitcoin exploded to a new record high on Monday after Tesla revealed that it had purchased around $1.5 billion worth of the cryptocurrency in January. The flagship cryptocurrency reached $44,900 ahead of the New York opening bell, pointing to extended gains as traders rejoiced the entry of the Wall Street’s fifth-largest firm into the cryptocurrency […]

2021-2-9 17:58


Фото:

Around The Block With Jeff and Dave – June 4, 2019 – Yahoo’s Cryptocurrency Exchange, JP Morgan and Alibaba, and the all new Ledger Nano X Reviewed. Join Us!

In this episode, we review what JP Morgan and Alibaba are working on, how large enterprises are using blockchain and what this means for ICO/IEO coins. Yahoo! has also gone live with a new cryptocurrency exchange – what does this mean for the broader adoption of coins? Finally, we take an in-depth look at theRead MoreRead More.

2019-6-4 20:40


New OneCoin DealShaker Platform is Deserted By Its Owner as Ponzi on the Verge Of Collapse?

The New Zealand Samoan community recently fell victim of a billion-dollar global cryptocurrency scheme that was labeled as a scam. OneCoin cryptocurrency investment project has responded to widespread allegations going on in and around the cryptocurrency world that the project is nothing but a pyramid scheme. The apex bank in Samoa, the central bank of […]

2019-5-24 19:55


Unfortunate Crypto Case of Scamming Senior Citizens for the Sake of BitConnect Investments

Older generations have been through a substantial rollercoaster with the financial industry in their lifetime. However, as the evolving world changes with the presence of cryptocurrency, the territory seems new and unfamiliar, leading scam artists to take advantage of these investors that are new to cryptocurrency. As The Block reports, this is exactly the case […]

2019-2-11 04:09


Фото:

New York State Creates Cryptocurrency Task Force

In a bid to formulate amenable policies to foster cryptocurrency adoption and protect consumers from bad actors, New York state has created a cryptoassets task force.   The group is made up of technologists, cryptocurrency holders, institutional and small investors, academics, and blockchain-linked businesses, according to a Facebook post on January 3, 2018, by Clyde Vanel, Assemblymember for the 33rd District.

2019-1-4 16:00


Фото:

Bitcoin and Bitcoin Cash Feud Reaches New Levels on TrustPilot

A war between Bitcoin loyalists and Bitcoin Cash enthusiasts has reached new levels as tension escalates on consumer review site Trustpilot. Bitcoin loyalists have ranked Bitcoin.com a low one star for being an “infamous fake” website, while those loyal to Bitcoin Cash noted that the website is “amazing” and that Roger Ver has done much […] Bitcoin and Bitcoin Cash Feud Reaches New Levels on TrustPilot was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

2018-8-8 18:59


Фото:

Bitcoin PR Company Announces Free One-Hour Consultation for Blockchain Start-ups

Bitcoin PR Buzz, the original Bitcoin PR agency based in Belize, has announced a no-strings-attached, free one-hour PR strategy consultation session for new clients. Blockchain companies that want to expand their reach and enhance their influence across the globe can take advantage of this free session and learn ways in which they can utilize the […] Bitcoin PR Company Announces Free One-Hour Consultation for Blockchain Start-ups was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

2018-8-8 18:19


Фото:

This Coinbase Update Will See Huge Benefits For US Customers

Can anyone stop the growth of Coinbase? This week alone, the company have made a number of announcements that are really putting the exchange on the map and making it one to watch for the future. Of course, Coinbase is one of the largest exchanges in the world, but it is often considered to be a plain sailing, safe platform, one that is safe to use, but could get boring going forward.

2018-8-8 17:00


Фото:

Coinbase Custody Looks Into Adding 40+ New Altcoins

Coinbase Custody revealed Friday that it would begin having a look at the addition of various existing and upcoming cryptocurrency assets to its system for storage only. The statement, which was delivered to the public and those internal at Coinbase at the same time to retain transparency, states that the company has started an exploratory procedure to determine whether or not to include more than 40 cryptocurrencies to its custodial service.

2018-8-8 15:00