A Long Time In Finance The Strange Non Death of Crypto
Dec 15, 2023
Matthew Pines, a cybersecurity expert and fellow at the Bitcoin Policy Institute, dives into the surprising resilience of cryptocurrency despite its tumultuous history. He discusses the cyclical nature of Bitcoin, likening its alleged demise to Mark Twain's quip about his own. The conversation covers China's impact on the crypto landscape, Bitcoin's adaptability, and the balance between anonymity and regulatory pressures. Pines also speculates on Bitcoin's potential as a global reserve asset and the implications of institutional investment on its future.
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Crypto's Resilience Revealed
- Despite major scandals, crypto has demonstrated resilience and a recent rally in value.
- Market capitalization has roughly doubled to $1.64 trillion, showing continued investor interest.
Bitcoin's Cyclical Price Nature
- Bitcoin's price cycles are driven by endogenous risks being de-risked, like regulatory and reputational risk.
- Its four-year halving cycle creates characteristic booms, busts, and price accumulations.
Bitcoin's Dual Use Case
- Bitcoin enables global permissionless payments not controlled by any third party.
- It is used by both illicit actors and dissidents in oppressive regimes, illustrating its double-edged nature.