bitcoinmagazine.com 3 h Reading time: ~4 m
This is an opinion editorial by Robert Hall, a content creator and small business owner.
The events of the last few weeks have spooked investors and regional banks alike. More importantly, the people who go to work and make the economy run are starting to question whether their bank deposits are safe. Fears of more bank runs after the collapses of Silicon Valley Bank (SVB), Signature Bank, Silvergate Bank and Credit Suisse are rampant.
And these fears are not unfounded, if you ask me. For instance, when you turn on the TV and see that First Republic needs a $30 billion bailout to stay afloat, it doesn’t inspire confidence in the banking system. And more banking chaos could come. Legendary investor Michael Burry believes that two more banks could be in trouble in Comerica Bank and U.S Bancorp. Essentially, these banks are in the same position that SVB was in. The likelihood of more bank bailouts seems to be increasing by the day.
To top it all off, federal regulators are studying the possibility of insuring all bank deposits in the entire banking system. There are approximately $19 trillion in bank deposits in the banking system. Any talk of insuring the bank deposits of every bank in America is insane and outright dangerous. Talk about throwing more fuel on the fire. I think this would make people more worried about their money and spur more bank runs. The government and the Federal Reserve are playing with fire.
The Federal Reserve is reacting to situations instead of being clear headed and planning ahead. This will lead to overreaction and implementing policies that could do more harm than good. It’s crazy that the fate of the entire economy is in the hands of people like Janet Yellen, Jerome Powell and Joe Biden.
Do you sleep like a baby at night knowing these people are in charge of the economic fate of the planet? How we got to this place is well documented, and there is no reason to go into detail, but taking a step back makes you realize what a precarious situation we are in right now.
Thank God For Bitcoin
I want to be the first to say in chaotic times like this: “Thank God we have Bitcoin.” We have certainty that our money is our money. There is no third party that is going to f*ck with it and inflate its value away. There are no third parties that can stop you from accessing it. No one can stop you from spending it on what you want or sending it to whomever you choose.
For the first time in history, the power to transact is truly in the hands of the people. Bitcoin is the most innovative monetary technology ever created. This realization is starting to dawn on people as more people flock to the safety of Bitcoin during times of turbulence.
The bitcoin price has ripped higher on the news of these recent bank collapses. As of this writing, in the last 14 days alone, the price of bitcoin has shot up 28.8 percent. This is a massive move in a matter of two weeks. Is it safe to say that bitcoin is becoming a risk-off asset in the eyes of the average consumer? It is certainly trending that way.
Bitcoiners already know this to be true; we are simply waiting for everyone to play catch-up in real time. As of the writing of this article, the price is just north of $28,000, and in all likelihood, won’t stay there for long if news of more bank failures comes to pass.
As a Bitcoiner, it is nice for more people to realize what we have come to about Bitcoin and start to save their wealth in bitcoin. On the other hand, I didn’t want it to happen in such a way that it endangers the entire global economy.
Some believe bitcoin will reach $1 million in the next 90 days! What a time to be alive, right?
Events will happen the way they are supposed to happen; the best thing we can do as Bitcoiners is to continue to spread the word about Bitcoin to anyone who will listen and continue to stack sats accordingly.
“There are decades where nothing happens, and there are weeks where decades happen.”
Not that I like quoting dead communists, but I feel like this is appropriate for the times we are living in. 2023 could end up being a consequential year for Bitcoin and the globe. Buckle up. It’s going to be a wild ride.
This is a guest post by Robert Hall. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.