With a recession coming, Bitcoin SV is the smart investment
Experts are starting to speculate that a Wall Street crash, and with it a recession, is just around the corner. Naturally, as investors look for safe haven, many will turn to cryptocurrencies based on their prospects and distance from traditional institutions. One man in the industry suspects that when that day comes, Bitcoin will do fine, but Ethereum could die out.
Writing for Baron’s, Kyle Chapman from tech venture capital firm Cosimo Ventures looked at Bitcoin, Ethereum and Ripple as alternatives to traditional investments.
Regarding Bitcoin, he said:
Faced with a recession, Bitcoin may serve a market function similar to that of a safe-haven commodity, rather than an equity, due to its inherent scarcity and decentrality. Bitcoin, by design, is not intended to be used as a foundation on which developers could build a platform or enterprise. Because its supply is not controlled by any one person or entity, it’s more likely that Bitcoin will perform independently of broad market pressures (akin to how one would expect gold to react)—potentially even appreciating in value should demand for alternative forms of dependable value storage arise.
On the other hand, he expects Ethereum will struggle. Because the token requires companies to build products on top of it, if investment dries up for that development, Ethereum will dwindle. It can’t act as money, as Bitcoin can, and will have little utility. Furthermore, as its structured similarly to traditional markets, it’s fate is closely aligned with that of Wall Street.
To wrap up, he suspects that Ripple could also maintain its stability, but notes that its fate is much more reliant on issuance, good management, and adoption, than Bitcoin is.
Chapman concludes on a very important point that bodes well for Bitcoin, and specifically Bitcoin SV (BSV). He said, “Recessions clean out the companies that rely solely on investor speculation and market interest to be successful… If people think a product is worthwhile even when money is tight, it’s certainly indicative of its long-term value.”
That’s where BSV comes out ahead. BSV has been built to be the world’s new money, not a speculative investment. It is built to scale to the needs of the world (as has been proven with its recent sustained 128MB scaling test) and provide a stable protocol for development so that enterprises can build on it with confidence.
Bitcoin Core (BTC) proved in late 2017 that its developers, who hijacked the Bitcoin protocol for their own desires, didn’t have the acumen to plan for a future of higher transaction volumes, and as a result, were crushed by a slow network with high transaction fees. As a public relations spin, they have decided their altcoin is a speculative store of value rather than anything of use. That won’t cut it when hard times come again.
BSV has proven its ready. It’s ready to build on now, and it’s ready for whatever may come in the future.
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as SegWitCoin BTC coins. Altcoins, which value privacy, anonymity, and distance from government intervention, are referenced as dark coins.
Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.