The resilience of bitcoin

The genie is out of the bottle. Can’t put it back in now.

This is the thing with cryptocurrencies and the whole blockchain phenomenon. And dare I say it, even bitcoin. It is far too big now, far too resilient for any one entity/institution/nation to bring it down. Jamie Dimon disses bitcoin, it goes down to the low 3000s and comes back to 4000 again, China bans ICOs, shuts down exchanges, it is another trading opportunity, Allianz governor does something, same thing. Russia now joins the bandwagon.

Through it all, BTC has been resilient, coming back even stronger, from government and corporate actions, exchange hacks, scaling debates and other numerous hurdles and roadblocks that have faded away in the rearview mirror
In a clear sign of the existing centralized incumbencies being threatened, great business leaders and powerful governments and omnipresent institutions are trying to bring BTC to its knees, and even greater will fail. Progress is irreversible, as libertarian as it sounds. If China and Russia and Wall Street are united in opposing something, that something definitely is something.
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As someone quipped on twitter, Jamie Dimon opining on bitcoin is a bit like the Head of the Post Office talking trash about email!James Altucher article – Love this guy, breaks down the landscape and the bull case for BTC and ETH beautifully. We agree with him, 99% of current cryptos will fail, and that is a good thing. The ones that stay will back will be ridiculously resilient and relevant. We think BTC and ETH will be around for a while too.

Bitcoin could still fail, for economic: Miners are still way-too centralized at the end of the day with a majority of them based out of China, and yet another split looms, as well as for technical reasons (quantum computing advances). However, increasingly, smart money seems to be on BTC surviving. Case in point, even as Jamie Dimon was talking BTC down, some of his colleagues were buying up BTC exposure. There is also this great conspiracy theory about China spooking the markets so that it can buy the dip!

In the meanwhile, South Korea has taken up China’s Slack, with bittthumb overtaking bittrex in global trading volumes. One other thing we are watching closely in the Crypto markets is Ethereum and the proposed Metropolis upgrade, and the move to a POS paradigm. This has significant implication for miners. Additionally, if ETH tanks, there could be a nice run-up in ETC prices, as the traditionalist fork will continue to based upon POW and a run-up could then make ETC mining profitable again, leading to a short-term virtuous cycle there.
Also, YC now wants to start tokenizing investments. About time. It will be a great leveler, getting more and more non-accredited money (HNIs, mass affluence) into the funding ecosystem. Watch out VCs. Here comes the blockchain!