For crypto die-hards, the idea that Bitcoin could ever crash is unthinkable. But what if for some reason the Bitcoin network were to crash? Max Gagliardi, co-founder of Ancova Energy, an American bitcoin mining and advisory company, gave us some insight on what would happen in the event such a situation becomes reality.
“If Bitcoin Crashes, Privacy Will Fall With It” highlighted Gagliardi in a lengthy Twitter thread posted Jan. 23. “The ability for individuals to send and receive value in P2P without government and banking system interference will be lost. Bitcoin (BTC) promises a future where anyone can have private access to their money.”
Max Gagliardi made these comments at a time when the crypto market in general, and Bitcoin in particular, is going through a tough time. Indeed, some investors and economists have criticized the asset and even called it a speculative bubble. BTC has lost 20% in two days since Jan. 19 to hit a six-month low of around $33,400 as market scare peaked. Since then, the market’s #1 cryptocurrency has rallied slightly, but it remains down 45% from its all-time high of $69,000 reached on November 10.
After citing Bitcoin’s founding principles, Gagliardi pointed out that Bitcoin’s failure would mean the victory of government oppression, censorship, and corruption. On the other hand, if the digital asset is victorious, freedom, transparency and truth will win.
“We live in a time of unprecedented censorship. Bitcoin is the most secure network in history so far. It is resilient, antifragile and permissionless. Also, anyone in the world can access it. There is nothing else of you. Bitcoin cannot be subject to censorship,” he asserted, before adding:
“The government can lose hundreds of billions every year, but they want us to report to them every time we spend more than $600. There is no accountable or transparent government in our system. Without Bitcoin, we lose our only counterweight to this system.”
“Unelected bureaucrats decide the value of your work and your time. Money is how we preserve the value of our time on this earth. No one should have the power to inflate the value of your time without your knowledge. The 21 million BTC offer solves this problem.
If Bitcoin Crashes, Capitalism, Truth, and Freedom Will Follow
Bitcoin is highly valued by the general public. However, governments vehemently loathe it due to its decentralized nature, which rejects centralization of power and enforces privacy. Thus, governments have repeatedly criticized this asset, advancing arguments such as its use by certain people in transactions they consider “illegal”, the volatility of its price as well as its carbon footprint.
Furthermore, leaders around the world have made targeted efforts to stifle Bitcoin’s growth by introducing strict legislations. China, for example, has deemed it more appropriate to completely ban cryptocurrencies on its territory. Moreover, it is also possible that malicious actors can hijack the network via what is known as a 51% attack and destroy the ecosystem.
However, in our rush for profit and gain, the philosophy of BTC as a tool for individual and societal freedom seems lost for many in the crypto-sphere. On this subject, Mr. Gagliardi pointed out that BTC “is too important to fail”. Indeed, the specialist described Bitcoin and its underlying technology (i.e. its blockchain), as tools of truth and freedom of expression. If the crypto fails, the other two will also fail. Thus, he clarified:
“Bitcoin is a code. Numbers and letters. A private key is all you need to be able to preserve, move, and transfer value. Never in human history have speech and language been so powerful. Freedom of expression is the most fundamental of human rights”.
Gagliardi, who is also the host of a podcast on Bitcoin energy and mining, argued that BTC should not be allowed to fail because it would cause capitalism as a concept and the energy transition to fail. “We need Bitcoin, which is the energy buyer of first and last resort”, to move into a “new energy future”.
“Bitcoin monetizes energy waste and encourages new, more efficient energy resources,” explained Max Gagliardi. “The Bitcoin network is the spirit of capitalism represented by a code [parce qu’il] won [sa] value organically since its launch”.
The asset is far too important to fail
If Bitcoin crashes, people will have nothing left, he said. “We don’t own anything of value. Goods and money are regulated and stored with guards. You don’t own them; you just have rights to those goods. With Bitcoin, the value of your work can be stored with just a few words. You are free to take it wherever you want”.
In closing, Gagliardi pointed out that BTC “is way too big. We can not [le] fail”. However, Max Gagliardi’s plea was not unanimous on Twitter. For example, Allen Drewe criticized the use of Bitcoin as a tool for criminal activities.
“Bitcoin does not contribute to truth and transparency. It’s more for money laundering and dark web stuff,” he shot back.
In response to this comment, Mr. Gagliardi pointed out: “The US dollar is the currency most used for crime, drugs and terrorism. What I mean by truth/transparency is the immutable nature of the network ledger. There is no possibility of cheating. Once the proof of work is complete, it becomes an objective record forever. No ambiguity”.
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