US banks overdrawn – There american banking crisis shook up the economy and left many wondering if traditional financial systems are really reliable. For Michael NovogratzCEO of Galaxy Digitalthis crisis was a “ adrenaline rush » For cryptocurrencies, reminding everyone of the fragility of existing financial systems and emphasizing the importance and growing relevance of Bitcoin.
The American banking crisis, a springboard for Bitcoin and cryptocurrencies
Silicon Valley BankFirst Bank, but also the Deutsche Bank or even Credit Suisse: our banking system is in turmoil, and the central banks, notably that of the United States, are in battle order to save the ship before it sinks.
For the CEO, traditional financial systems have shown their fragility. This fragility highlights the growing importance of alternative financial solutions such as crypto. Solution that the African continent was able to adopt fairly quickly. In other words, according to Novogratz: Bitcoin was created for this moment.
“Crypto was created in many ways for this point (…) Satoshi Nakamoto, in 2009, was worried about the collapse of the legacy financial system… Bitcoin is really the first decentralized exchange of value or money, which has then really gave birth to this whole industry. »
Novogratz CEO of Galaxy Digital – Source: The Block
>> Want to trade Bitcoin and cryptocurrencies without leaving your shirt? AscendEX has a nice surprise in store for you (commercial link) <<
Did Satoshi Nakamoto anticipate the banking crisis?
Spoiler: we won’t answer this question. However, one of the main reasons why Satoshi Nakamoto created Bitcoin was to provide an alternative to a failing banking system. In 2008, when he published his famous white paper ” Bitcoin: A Peer-to-Peer Electronic Cash System the global economy was undergoing a major financial crisis. Banks faced bankruptcies and governments were forced to bail them out with taxpayers’ money.
In this context, Satoshi Nakamoto clearly indicated in his white paper that the Bitcoin was designed to :
- Solve the problem of trust between the parties during financial exchanges;
- enable a decentralized system;
- verify the authenticity of each transaction;
- eliminate the need for a third party;
- withstand inflation.
Unlike traditional currencies, which can be printed in unlimited quantities by governments – moreover, 25 billion dollars have recently made it possible to save the american banking system – Bitcoin has a limited supply, with a maximum of 21 million coins that can be created. This limitation ensures that the value of Bitcoin will not be diluted by uncontrolled inflation.
So certainly, we will not be able to say with certainty – like Novogratz – that Satoshi Nakamoto anticipated the banking crisishowever he prepared us for it by providing us with a revolutionary tool.
Regulation: the pebble in Bitcoin’s shoe
And yet, the different events of the year 2022 harmed the ecosystem. Galaxy Digital paid the price by declaring a net loss of $1 billion in the middle of the crypto winter. But Novogratz remains optimistic about the future of Bitcoin, cryptocurrencies and his company.
He admits, however, that the current regulatory regime in the United States is very strict and poses major challenges for the crypto industry. I’SEC investigation into Coinbase and the pursuit of Binance by the Commodity Futures Trading Commission (CFTC) are recent examples. Europe is no exception either with the MiCA regulation.
Many are those who despite the DRY cold of this crypto winter remain optimistic about the future of the queen of cryptocurrencies. As the cold season sets in and the remonstrances of regulation rain down on our ecosystem, some even continue to buy. This is the case of MicroStrategy which gave another 6,455 BTC the day before yesterday in his crypto piggy bank.
The dominoes are starting to fall one by one, allowing Bitcoin to gain a little more traction every day. Want to collect free satoshis? Go register on AscendEX. To trade cryptocurrencies without breaking the bank, take advantage of a 10% reduction on trading fees (commercial link, see conditions on site).