Is Bitcoin now “too big to fail”?
Last Updated on 9 August 2020 by CryptoTips.eu
During the last worldwide economic crisis, you remember 2008 and Lehman Brothers I assume, the term “too big to fail” became a household name. It pointed to what would happen if governments in Europe and North America allowed major investment banks such as JP Morgan, Goldman Sachs and Bank of America to go bankrupt.
According to the CEOs, who were all receiving tax money back then, their companies were simply too important to go bankrupt, and if they did, the entire Western economy would tip over into the abyss.
The governments gave in and sent the banks the requested money. The taxpayers who financed it all lost their jobs themselves and the bankers stopped paying out bonuses for a year or two. The world was saved.
The term became synonymous with everything wrong about Wall Street and became the title of a bestselling book as well as a movie about the credit crunch.
Dollar and Bitcoin
This time the term has been reused by prominent crypto trader Scott Melker, known by his Twitter moniker The Wolf of All Streets. He was recently featured on these pages when Zeus Capital, an investment fund, contacted him to write negative stories about Chainlink. Scott refused.
Bitcoin is too big to fail.
— The Wolf Of All Streets (@scottmelker) August 7, 2020
It has proven its resilience and grit. Governments can try to slow the inevitable, but it cannot be stopped, banned or eliminated.
Just as we recently noted ourselves, Scott pointed out the clear correlation between the decline of the US dollar and the rise of Bitcoin.
It is becoming increasingly clear that if the dollar were to escape its ten-year trend channel and plunge even lower against gold, the Euro and Bitcoin, it would be all hands on deck. In addition to Melker’s claim that Bitcoin is now “too big to fail”, he pointed out the dollar’s downward trend channel earlier this week.
$DXY
— The Wolf Of All Streets (@scottmelker) August 3, 2020
This is arguably the most pivotal moment we have seen for the United States Dollar since it bottomed in 2008.
This channel has been intact for over 10 years. If it breaks down, hide yo' kids and buy a metric ton of #bitcoin. pic.twitter.com/eKSanHWHSu
Melker said:
This is arguably the most pivotal moment we have seen for the United States Dollar since it bottomed in 2008. This channel has been intact for over 10 years. If it breaks down, hide yo’ kids and buy a metric ton of Bitcoin.
