Bitboy declares that crypto is not dead and will not be, no matter what happens
Contrary to the assumption that this could be the endgame of crypto after recent events in the space, top YouTuber Ben Armstrongalso known as Bitboy, declares that crypto is not dead and will not be, no matter what happens.
Crypto is not dead. No matter what happens with GBTC/Genesis/Silvergate, remember this:
When $BTC was barely relevant Mtgox was hacked. 90% of Bitcoin transactions took place there. Almost the entire market in one place… away… poof.
And we survived and thrived.
— Ben Armstrong (@Bitboy_Crypto) November 19, 2022
He cites the collapse of Mount Gox, one of the largest Bitcoin exchanges at the time, and says that the market survived and then thrived.
In February 2014, a massive 840,000 BTC hack crashed the Mount Gox exchange. Just a few months earlier, Bitcoin hit a new record high of nearly $1,100, with Mount Gox controlling about 90% of all transactions.
After the attack, Bitcoin experienced a subsequent drop in value of up to 85%, bottoming out in January 2015, almost a full year later.
For the first time, traders saw a major Bitcoin bear market, and it wasn’t until December 2017 that another all-time high was reached. Fast forward to 2022, and Bitcoin has lost 76% of its value in a year, well below its peak of $69,000 reached in November 2021.
FTX contamination spreads
In the past week, institutional lender Genesis Global Capital suspended customer redemptions, citing the sudden bankruptcy of cryptocurrency exchange FTX.
Greyscale Bitcoin Trust, the world’s largest Bitcoin fund, fell after the news, and the price of Bitcoin fell as a result.
Significant Bitcoin outflows were also observed on cryptocurrency exchange Gemini last week as industry-wide concerns about insolvency grew. Genesis remains in trouble as it needs a $1 billion liquidity injection by Monday.
FTX has filed for bankruptcy protection in the highest-profile crypto blowout to date, after massive withdrawals and rival exchange Binance abandoned its bailout deal.