Cryptocurrencies made a lot of people a lot of money this year. During the pandemic, the gold and fiat crashed as usual, and there were signs that they would keep depreciating for a while. On the other hand, in league with Bitcoin, the crypto market gained an average of 300-500 percent in value. This type of resilience has not gone unnoticed in the market. Raoul Paul, founder of the Real Vision and Global Macro, has the same thoughts about Bitcoin.
In a recent tweet, the billionaire investor draws the attention of his followers towards the main purpose of Bitcoin creation. As mentioned in the original Bitcoin whitepaper published by Satoshi Nakamoto, it is clear that Bitcoin has the main purpose of providing a better alternative for traditional currencies and trading commodities. As per Paul’s findings, Bitcoin is experiencing the VaR Shock.
Bitcoin Current Position Indicates that It is Ready for the Eventual Global Takeover
A snapshot of Bitcoin price readings would show a consistent downtrend during the last weeks. However, as a Bitcoiner and crypto enthusiast Paul thinks that Bitcoin has ripened up to burst and disperse its seedlings far and wide in the trade market forest and become the most dominant species. While the rest of the market thinks that after losing 40% of its price tag, the Bitcoin bull run has run its full course, Paul believes that it is nothing more than a VaR Shock.
VaR, or Value at Risk, is an index used to weigh the amount of financial risk present in a given asset or stock. He believes that Bitcoin has not just lost its place in the trade market as a trillion-dollar asset class but rather proved its resilience under immense pressure. While other assets like fiat and gold have crashed significantly, Bitcoin has shown higher stability in comparison.
The most important factor to be noted about cryptocurrencies is that they are not relying on the laws and regulation changes that are proposed by central authorities like banks and the government. A small blackout was witnessed, but there were no reported cases of crypto exchanges going out of business or big blockchain projects folding their operations.
In more than one case, in the time of crisis, the prevalent monetary system has crashed down and resulted in the loss of billions of dollars. However, DeFi, fintech, and blockchain projects are far from over and seem to be only getting warmed up with lots of new possibilities and use cases. With a little amount of turbulence, the market has managed to get out of a runt and get back on its feet.