With the digital currency markets in turmoil, Bitcoin developer and thought leader Joshua Henslee shared his views on the state of the markets and the impact on Bitcoin SV.
Black swan events and fundamental value
Henslee begins by asking about situations such as these: is anyone in BSV worried more than they were before this recent dump? He challenges us to think about the bigger picture and assess fundamental value. Sure, there may be some situations in which you should sell what you’re holding short-term, but you should always wonder whether there’s a larger issue or whether it’s just a panic-driven selloff.
The heart of our analysis should always be “what driving this crash?” If it’s a decoupled crash, it could be a sign of a real problem, but if it’s going down because everything else is going down, then that’s not as much of a concern.
Henslee looks back to those who mined Bitcoin in the early days and profited greatly from it. They did work to earn value which they held onto through multiple cycles, and they’ve been handsomely rewarded for doing so. Earning BSV on apps like Haste Arcade could provide a similar opportunity today.
The Ponzi scheme is unraveling quickly
Henslee notes that the house of cards is coming down fast—something he and many others have long predicted.
With the implosion of FTX, one of the world’s largest digital currency exchanges, in what could be one of the biggest schemes ever seen in this industry, several other exchanges are resorting to providing ‘proof of reserves’ to stop withdrawal tsunamis.
Henslee sees this as a plot to delay the inevitable while exchanging higher-ups dump as much as they can. In the end, even Binance will go down, he believes, but he admits he may be wrong about that one.
What happens when it all blows up? That’s when fundamental value will be found, he says. It’s at this stage, after the speculation stage is dead, that true utility can shine.
Key takeaways from this video
- Henslee notes that the digital currency markets are in meltdown. However, BSVers should stop and ask if there’s a fundamental problem here or if the price dip is just due to a broader market panic.
- As in the early days of Bitcoin, there could be a chance to accumulate value at rock-bottom prices here. This could be an opportunity to earn BSV that, in years to come, could be worth a lot of money.
- Henslee believes that more exchanges will fail. The ‘proof of reserves’ gimmick is just a ploy to buy time and dump tokens.
- When the inevitable rinsing is over, true value will finally flourish, and the industry will take a turn for the better.
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