The global financial market is in shambles. Fears over the spread of the Coronavirus have hit the markets so hard that the effect has been felt in the crypto market as well. The stock market is collapsing, and even the oil market is feeling the heat. On Thursday 12th, March, Bitcoin took a nosedive, followed by the rest of the market.
As the crypto community grapples with the situation to understand the immediate consequences, some pessimistic people have opined that Bitcoin may not be as good a store of value as has been widely advertised over the last couple of years.
However, it’s people like Erik Voorhees who have a clear understanding of the crypto market that still holds a rather optimistic opinion. In a twitter post, Erik who is the CEO of the crypto exchange ShapeShift sought to dispel the notion that Bitcoin has failed as a store of value.
First off, it’s fair to note that the crypto market has been much more resilient than the stock market. While governments have rushed to plug their struggling economies by printing more money for Quantitative Easing programs, the crypto market is a totally free market that needs no entity to stabilize it.
To bring that to perspective, the US Federal Reserve has just announced a further 1 trillion-worth program to be pumped into the economy in a 5th Quantitative Easing program since the market went south.
It’s true that Thursday 12th, March, was a bad day for Bitcoin and the crypto market at large, but that doesn’t really spell the death of the top coin’s viability as a credible store of value.
According to Erik, Bitcoin is about to prove its strength in the coming months. Bitcoin’s anti-fragile nature has enabled it to recover quickly and easily whenever it gets down. That’s unlike the rest of the traditional market that takes years. For instance, the global market has taken almost a decade to recover from the 2008 economic recession.