C-19 Exposes the Myth of Bitcoin as a “Safe Haven”

Bitcoin: The myth of a safe haven exposed by the global pandemic.

The difference is, Dec will be sustainable in the face of a crisis in the way that Bitcoin was supposed to have been, but has (so far) proved not to be.

Much to the disappointment of true believers, Bitcoin — in fact, the whole cryptocurrency market — in the face of the current threat has cratered right along with the stock market.

As a result, the value of stablecoins is dependent on external factors that users cannot control, and in this regard they are very similar to a stock or a bond rather than a truly “decentralised” alternative.

Q. What is the point of a crypt or mainstream economic system that tanks in the face of crises? A. None

Or at least they did. Until the proverbial excrement hit the fan two weeks ago.

Though Bitcoin’s price has jumped since, the 40% dip of March 12 was enough to reveal the crypt’s instability in the face of the type of crises it was supposed to be stabilising HODLers against.

Unlike stablecoins (which are really only a reflection of legacy commodities and aggregate collateralisation of other crypts), Dec is pegged to the value of user data; user data being a “commodity” that is controlled by every user at the level of every user.

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