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Black swans happen once a decade or so: dotcom bust, 9/11, GFC, now coronavirus. If the crypto can't deal with it, it's not much of an investment or a store of
by 9nGQluzmnq3M 7y ago
Black swans happen once a decade or so: dotcom bust, 9/11, GFC, now coronavirus. If the crypto can't deal with it, it's not much of an investment or a store of value.
- bitcoinbutter 7y agoWell the solution is to have some sort of emergency fund which activates in black swan events to rebalance the portfolio. It's just something to factor in. Adds some costs to operations but only fractions of a percent.
- deleted 7y ago[deleted]
- vinniejames 7y agoThere is an emergency fund, the governance allows the Maker token to be printed and sold to cover losses, diluting existing token holders
- darawk 7y agoThat's true, and it has dealt with it, is the point.
- Itsdijital 7y agoQuite the opposite actually. At least to me it means that institutions actually have been holding crypto reserves, which I'd say gives it a fair amount of legitimacy. Crypto didn't sell off in a vacuum this time, it sold off with the market at a time when it should be selling off. I know what you're thinking, but that's not the case. Right now, same as in 2008, institutions are liquidating "store of value" assets to open up more liquidity. That $1.5T in fed repo? Well the fed doesn't take BTC as collateral. And since they don't nobody else is right now. Same with gold. Cash and T-bills are king, so liquidate everything else. Really this shows that crypto is at least starting to be folded into the main financial world. It actually for once has some degree of beta. TL;DR: This is good for bitcoin.