On Monday, June 13, many in the digital currency markets woke up to a shock—a second major crash. BSV developer Joshua Henslee released a video sharing his thoughts on why it’s happening and why he thinks we’re entering a longer-term bear market.
Bears everywhere—Celsius freezes up
Henslee begins by reminding us that he recently released a video explaining why digital currency is done pumping. He lets us know that this video will reiterate some of the points he made in that one but that new events have unfolded, which makes him more sure we’re in a bear market.
What events is he referring to? Primarily, the lending platform Celsius freezing user swaps and withdrawals, leading to rumors that it may be insolvent. Henslee jokes that it reminds him of the temporary suspension of the USD for gold which turned out to be permanent.
On top of the events surrounding Celsius, Henslee is bearish because the entire macro landscape has changed, and he can’t see any cause for optimism. In the wake of the LUNA/UST implosion, sentiment had already taken a hit, and the watchful eyes of regulators were already wide open, but with Celsius freezing withdrawals and Tether ceasing to print new stablecoins recently, the outlook is bleak.
According to Henslee, the macroeconomic picture doesn’t inspire much hope, either. With the Federal Reserve and other central banks raising interest rates to fight runaway inflation, it becomes more likely than not that prices of digital tokens will continue to get lower.
A house of cards built on shifting sands
Henslee makes the critical observation that this industry is built on the notion that Satoshi Nakamoto was wrong when he said Bitcoin could scale to global dimensions. None of the other blockchains or coins needed to exist if Satoshi was correct, and so if he was, which is being proven on Bitcoin SV, the entire industry rests on faulty foundations.
In Henslee’s view, there’s nothing tying any of the currently hot tokens to any real value, and so the bottom is limitless. He believes that many VCs know this, hence the price of tokens like SOL are plummeting as they head for the exits.
Henslee reminds viewers that he takes no joy in any of this. While the industry is ridiculous, real people get hurt when big crashes happen. To him, it’s just more of the same old elites robbing the poor and swindling them out of their hard-earned money. He reminds us that Bitcoin was supposed to liberate the everyday people and usher in a new, fairer system. Instead, it became just another Ponzi scheme to fleece unsophisticated investors.
Wrapping up, Henslee tells us that, while it’s difficult to witness, the ultimate meltdown must happen. When it does, he believes that people will begin asking tough questions like what blockchain technology is all about, and then the era of utility can begin.
Key takeaways: Hard times ahead, but Bitcoin will survive and thrive
Like many of his other videos, this one expresses Henslee’s central thesis that much of the ‘crypto’ industry is a scam, that a huge wipeout will occur at some point, and that Bitcoin SV has a bright long-term future.
How can Bitcoin SV survive the cataclysmic events ahead? The answer lies in utility. Unlike many other blockchains and the tokens associated with them, people are building real, useful applications on Bitcoin SV. While it’s not the only blockchain with real development occurring, it’s the only one that scales infinitely and is capable of tiny payments.
If Henslee is right, digital currency speculators should be extremely careful in the coming weeks and months. However, those working on applications that bring real value to the world shouldn’t worry and should take a long-term view.
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