Bitcoin

Apparently everything that happens is good for bitcoin

Bitcoiners use Deutsche Bank troubles, and everything else, to proselytize for bitcoin.

Bitcoin

Apparently everything that happens is good for bitcoin

Bitcoiners use Deutsche Bank troubles, and everything else, to proselytize for bitcoin.
Bitcoin

Apparently everything that happens is good for bitcoin

Bitcoiners use Deutsche Bank troubles, and everything else, to proselytize for bitcoin.

There are two types of people in the bitcoin community: those who believe in a decentralized market free of middlemen and those who believe that this new thing will make them money. Both types have a strong incentive to tell you that bitcoin is awesome and you should own some because the price is going to go up and up forever.

That's why, whenever there is any financial news of any kind — which is sort of often — bitcoiners will do an interpretive dance to show how this event is a positive development for the currency, which is still an underdog on the world stage.

US government cracking down on bitcoin? Good for bitcoin, because it legitimizes the currency. Collapse of the digital currency exchange Mt. Gox, which cost people hundreds of millions of dollars? Good for bitcoin, because it cleared out the chaff. Brexit? Good for bitcoin. Mercury enters logical Air sign Libra? Good for bitcoin!

This expression of magical thinking has become such a trope that more self-aware bitcoin forum members now use the phrase "good for bitcoin" to poke fun at themselves.

"It's just something that happened to get said a lot in /r/bitcoin whenever something was posted that may have been either positive or incidental to bitcoin's development and perception," one Redditor explained.

Today brings another example of how, in Bitcoinworld, everything is good for bitcoin. Deutsche Bank, which has $2 trillion in assets, may have to pay some billions of that to the US government in a settlement. Some analysts have hinted there might be a run on the bank and possibly a bailout.

A speculative Coindesk article, "Would a Deutsche Bank Collapse Impact Bitcoin Prices?", was published on Friday. The takeaway? Deutsche Bank's instability is a danger for the world economy. The central banking system is corrupt and untrustworthy. Therefore, savvy investors should hedge their traditional market holdings by stocking up on digital currency. In other words: A Deutsche Bank collapse would be freakin' great for bitcoin.

It's true that bitcoin was launched partially in response to the 2008 financial crisis. It's also true that big banks have behaved irresponsibly in the past and will surely do so again.

However, all three analysts who told Coindesk that the Deutsche Bank situation will drive up the price of bitcoin are materially invested in the currency's success (one is a "blockchain products lead" at a firm, another is the "co-founder and CEO of leveraged bitcoin trading platform," and the third is "director of operations for leveraged bitcoin trading platform Whaleclub").

Bitcoin is still a small enough market that media coverage can regularly move the needle. It's also incredibly volatile, much more so than traditional markets. To say otherwise is akin to saying that because this November was colder than the last one, global warming isn't happening.

The Coindesk story also now appears moot, as the bank's stock has rebounded. No doubt someone will figure out why this is good news for emerging digital currencies.

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