The SVB failure will help BTC alot. | Bitcointalksearch.org

Alpha Marine

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Quote from: rat03gopoh on March 12, 2023, 09:41:32 PM

Bitcoin has never failed technically, although some consider that its fall in value is a sign of stalled sustainability. The fact is that they never realized that the reason for the decline was only due to external factors (most of which were due to the policies and conditions of centralized financial institutions), not an innate failure.

Your first statement sums up everything. Bitcoin on its own has never failed and as far as I can see, it never will. It's way better than fiat because it's a currency that when its value falls, there is every possibility that it will go back up, it could take weeks, months, or years but it will get back up. The value of $10,000 in 2010 is higher that the value of $10,000 today due to inflation. Whereas in the case of bitcoin, it's the other way around. 10btc today is higher than 10btc in 2013.
Even now that the market is not in a good place there is still hope and expectations that it will go back up sometime in the future and might even pass beat its ATH, I can't say the same about any fiat currency with the rate at which inflation is eating away at everything,

South Park

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Quote from: lixer on March 22, 2023, 12:04:34 PM

Quote from: posi on March 18, 2023, 03:45:38 AM

I agree with many recent bank failures that will bring more attention to bitcoin and will be an alternative for many people. But I'm not happy that these banks fail, and that doesn't benefit bitcoin either.

If the bank's bankruptcy does not stop but spreads, it is a dangerous sign for the world economy and will negatively impact the world. Once the economy is in trouble, bitcoin won't benefit too much. Banks are still the backbone of the world's financial system, and if it fails, they will cause so many problems that we can't even imagine.

Issues like this are not new anymore and I think many of the bank costumers have move in BTC long time ago. There are still some who are skeptical about BTC and have no idea on what it can do, this might be the time for them to find a new home for their money. Even if we are not using banks, what happened to them are still not good because they are causing problems to other people and like you I don't think it helps Bitcoin to rise in price.

I heard many crypto and blockchain businesses have now opened in Asian countries lately. That might be the real cause on why crypto such as Bitcoin as pumping nowadays. If banks collapse, I think Bitcoin won't be heavily affected because both of them are not related to each other so don't worry too much.

Supposing we were to face another banking crisis similar to what we saw during 2008 there is a decent chance that bitcoin will go down at the early stages, and this is because institutional investors have come to this market and if they were to lose their money due to the stock market crashing or another reason then most likely they will sell their bitcoin to cover their losses, pushing the price of bitcoin down as well, however once that initial stage of panic goes away I would expect for the price of bitcoin to grow at an outstanding pace.

lixer

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Quote from: posi on March 18, 2023, 03:45:38 AM

I agree with many recent bank failures that will bring more attention to bitcoin and will be an alternative for many people. But I'm not happy that these banks fail, and that doesn't benefit bitcoin either.

If the bank's bankruptcy does not stop but spreads, it is a dangerous sign for the world economy and will negatively impact the world. Once the economy is in trouble, bitcoin won't benefit too much. Banks are still the backbone of the world's financial system, and if it fails, they will cause so many problems that we can't even imagine.

Issues like this are not new anymore and I think many of the bank costumers have move in BTC long time ago. There are still some who are skeptical about BTC and have no idea on what it can do, this might be the time for them to find a new home for their money. Even if we are not using banks, what happened to them are still not good because they are causing problems to other people and like you I don't think it helps Bitcoin to rise in price.

I heard many crypto and blockchain businesses have now opened in Asian countries lately. That might be the real cause on why crypto such as Bitcoin as pumping nowadays. If banks collapse, I think Bitcoin won't be heavily affected because both of them are not related to each other so don't worry too much.

kro55

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Quote from: zaki12 on March 19, 2023, 12:33:10 PM

Quote from: rat03gopoh on March 12, 2023, 09:41:32 PM

Bitcoin has never failed technically, although some consider that its fall in value is a sign of stalled sustainability. The fact is that they never realized that the reason for the decline was only due to external factors (most of which were due to the policies and conditions of centralized financial institutions), not an innate failure.

It's good news that everyone has the opportunity to raise their sats every time people fear just because of the news of a big financial institution's failure.

I don't think anyone can ever push Bitcoin back below 20k again, so the crypto market is booming. SVB failure "This is a net negative for the crypto space" - but BTC price would say otherwise, right? In fact, considering that Nakamoto developed bitcoin in reaction to the 08 crisis, you could say the banks collapsing is positive for the crypto space!

Do not rush to confirm anything, bitcoin can spike, and can also drop suddenly. Although, I have the same thoughts as many people, a bank crash is a positive for bitcoin as people will think that banks are no longer safe and will look for alternatives. But what if a series of banks collapsed? No one knows what happened after that. That's the question I'm still wondering, is it good for bitcoin because when too many banks fail, it drains the economy? Once the economy is exhausted, no one benefits.

pooya87

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Quote from: jubalix on March 12, 2023, 05:34:23 PM

BTC as it is provably 100% backed.

Bitcoin isn't backed by anything though, at least not in the traditional meaning of the word.

In any case the banking system in US is failing, not just one bank. Specially as the FED keeps increasing the interest rate and that increases the defaults rate and enters the US economy into recession while the inflation is still high. To make matters worse they are printing trillions now which would not only increase US national debt but also ruins the already ruined economy even more.
The first to go down is going to be banks.

#bitcoinnotaffected

Quote from: Edwardard on March 13, 2023, 12:27:08 AM

CZ said he is converting most of his stables into BTC, ETH for safety in his most recent tweet.

CZ needs to worry more about being shut down by FBI like its predecessors instead of trying to buy a shitcoin like ether with part of his money.

adaseb

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FRC bank hasn’t failed at least yet. They are however the one most likely to get bought out however. The biggest one this week was Credit Suisse and we still have to see what effects this will cause on the markets.

Asia popped up but the real damage can happen when Europe opens and especially the New York session. There was like $17B of bonds which expired worth less and many are going to be holding the bag for that. Even the CDS issuers will be on the hook to cover the losses.

zaki12

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Quote from: rat03gopoh on March 12, 2023, 09:41:32 PM

Bitcoin has never failed technically, although some consider that its fall in value is a sign of stalled sustainability. The fact is that they never realized that the reason for the decline was only due to external factors (most of which were due to the policies and conditions of centralized financial institutions), not an innate failure.

It's good news that everyone has the opportunity to raise their sats every time people fear just because of the news of a big financial institution's failure.

I don't think anyone can ever push Bitcoin back below 20k again, so the crypto market is booming. SVB failure "This is a net negative for the crypto space" - but BTC price would say otherwise, right? In fact, considering that Nakamoto developed bitcoin in reaction to the 08 crisis, you could say the banks collapsing is positive for the crypto space!

bangjoe

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Quote from: jubalix on March 13, 2023, 12:56:14 AM

Quote

I don't necessarily think fiat can go to zero no matter how down the economy of that country is, unless the country is no longer in existence. If not, there will definitely be a value added to every fiat; its value will only reduce but it can't turn to zero.

By zero I mean that when you can't get you money back from the bank, it is for you zero.

Yes it is possible to lose your money in the bank when the bank collapses, What happened to SVB customers they got refunds covered by FIDC but with a limit of $250k per customer but I don't know what will happen to customers who have funds above $250k did they get their money back.
of course something like this or the destruction of fiat banking institutions will have a good impact and boost the price of bitcoin, because the benchmark here is the risk and trust of customers or investors in diverting the money they have, and because of that a few days ago bitcoin experienced quite a high increase.

ololajulo

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According to a publication from University of Southern California, up to 190 banks are at risk of impairment to insured depositors, with a potential loss of $300 billion. This is just a manifestation of previous bank failures, and I don't doubt it's a narrative for the beginning of the bull market.

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Quote from: livingfree on March 18, 2023, 02:31:35 AM

Quote from: ololajulo on March 18, 2023, 01:58:25 AM

One might need to keep reading about this financial crisis that happened in just a week. We can now count 5 banks;
1. Silvergate Bank
2. Silicon Valley bank
3. Signature bank
4. First republic bank
5. credit suisse
They are not small banks; they are in the top 30 tier banks in each country; VCs are just like any other depositor. The banks are poorly managed because of terrible interest rates, which result in enormous unbalanced losses.

And there's the FED next week giving some updates about interest rates. I guess all of these happenings will pile and stock up to each other contributing to the gain for bitcoin.

People who don't know like bitcoin will have to admit themselves that there's no other solution for these banking failures but only to hold their own assets through bitcoin.

Eventually, more haters will turn and be open to bitcoin because of these centralized banking biggest fails of history. And what's worrying is if it happened this time, it's possible that it may happen again in the future.

I agree with many recent bank failures that will bring more attention to bitcoin and will be an alternative for many people. But I'm not happy that these banks fail, and that doesn't benefit bitcoin either.

If the bank's bankruptcy does not stop but spreads, it is a dangerous sign for the world economy and will negatively impact the world. Once the economy is in trouble, bitcoin won't benefit too much. Banks are still the backbone of the world's financial system, and if it fails, they will cause so many problems that we can't even imagine.

royalfestus

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Quote from: livingfree on March 18, 2023, 02:31:35 AM

And there's the FED next week giving some updates about interest rates. I guess all of these happenings will pile and stock up to each other contributing to the gain for bitcoin.

People who don't know like bitcoin will have to admit themselves that there's no other solution for these banking failures but only to hold their own assets through bitcoin.

Eventually, more haters will turn and be open to bitcoin because of these centralized banking biggest fails of history. And what's worrying is if it happened this time, it's possible that it may happen again in the future.

According to some information from the last cycle, some VCs did not refund their loans. Despite not knowing many VCs that received loans, I understand how the three arrows lost massive amounts of money in the market, so we have many more cases like this.

livingfree

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Quote from: ololajulo on March 18, 2023, 01:58:25 AM

One might need to keep reading about this financial crisis that happened in just a week. We can now count 5 banks;
1. Silvergate Bank
2. Silicon Valley bank
3. Signature bank
4. First republic bank
5. credit suisse
They are not small banks; they are in the top 30 tier banks in each country; VCs are just like any other depositor. The banks are poorly managed because of terrible interest rates, which result in enormous unbalanced losses.

And there's the FED next week giving some updates about interest rates. I guess all of these happenings will pile and stock up to each other contributing to the gain for bitcoin.

People who don't know like bitcoin will have to admit themselves that there's no other solution for these banking failures but only to hold their own assets through bitcoin.

Eventually, more haters will turn and be open to bitcoin because of these centralized banking biggest fails of history. And what's worrying is if it happened this time, it's possible that it may happen again in the future.

ololajulo

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One might need to keep reading about this financial crisis that happened in just a week. We can now count 5 banks;
1. Silvergate Bank
2. Silicon Valley bank
3. Signature bank
4. First republic bank
5. credit suisse
They are not small banks; they are in the top 30 tier banks in each country; VCs are just like any other depositor. The banks are poorly managed because of terrible interest rates, which result in enormous unbalanced losses.

harapan

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Quote from: jubalix on March 12, 2023, 05:34:23 PM

Becuase people will realise you can't do a run on BTC as it is provably 100% backed. As more banks fail, if they do, the people in the queues and thier freinds and the media are going to realise you can always transfer your BTC.

Fiat does not look so "stable" vs btc when fiat can effectively go to zero overnight, becuase your bank failed.

SVB is a big well recognize and traditional bank, if that kind of system can fail, how do you think people who do not really have a lot of idea about crypto will think about BTC? This SVB drama would only make people in crypto realize that keeping their coins in centralized exchanges is the same things as keeping your money in an SVB account where somebody can mismanage it and make very wrong decisions which would make you lose your money. I don't think this saga favour the crypto industry, I think it only encourages people not to trust centralized exchanges.

Charles-Tim

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What I only realized is that people are full of ignorance and most of them will continue the wrong way which some may even prove to be right in their own way. Fiat has been existing before bitcoin and controlled by the government, people prefer what the government have say on, but not knowing what bitcoin can offer them. Some people knows what bitcoin can offer them but their business nature and the country they live and operating businesses are mostly friendly to fiat. Some people will even not get it right at all.

Quote from: jubalix on March 12, 2023, 05:34:23 PM

Fiat does not look so "stable" vs btc when fiat can effectively go to zero overnight, becuase your bank failed.

Fiat is volatile in a deceiving way like it is stable, it has always been on the down side and depreciating over time, which is very noticable in long term as those that saved fiat see their worth decreasing in the fiat.

jubalix

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Quote from: Dr.Bitcoin_Strange on March 12, 2023, 06:35:01 PM

Despite the issue with SVB, I cannot agree that Bitcoin is more stable than fiat because Bitcoin can have massive volatility in just a few days or hours; the changes could be +$500 or -$800. But fiat doesn't get easily chocked by volatility; what only happens is that inflation reduces the value of fiat currency.

Banks must not fail to make people realize they can transfer their money through Bitcoin; after all, people have a choice whether to use cryptocurrency transactions or not. I can agree that every digital USDC or USDT online is 100% backed by cash, but Bitcoin is not backed by any asset because it's decentralized and not controlled by any organization.

You are used to a narrow failiy limted USD experience. Plenty of fiat currencies fall the same percentaces. When the bank fails and you can get you USD back it 100% loss of funds (- the 250K, so anything over that).

All currencies are floating. They can go up alot or lose alot.

$1000/20000 is only 5%.

When BTC in the demoninator then it will be "stable" all other currecies will be seen to fluctate against BTC

jubalix

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Quote

I don't necessarily think fiat can go to zero no matter how down the economy of that country is, unless the country is no longer in existence. If not, there will definitely be a value added to every fiat; its value will only reduce but it can't turn to zero.

By zero I mean that when you can't get you money back from the bank, it is for you zero.

adaseb

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The issue here is that banks don’t keep the same amount of their deposits as their liabilities. Basically if they keep $1 of deposits for $100 worth of loans, what do they expect would happen when all of a sudden a small amount of people were to withdraw. Obviously the money wouldn’t be there.

I think their error was they should of scaled out of those MBS which lost valued earlier when they knew the fed would raise rates and they wouldn’t be in this mess to begin with. Or get some MBS with shorter maturities instead of 10 year ones.

Edwardard

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Quote from: jubalix on March 12, 2023, 05:34:23 PM

Becuase people will realise you can't do a run on BTC as it is provably 100% backed. As more banks fail, if they do, the people in the queues and thier freinds and the media are going to realise you can always transfer your BTC.

Fiat does not look so "stable" vs btc when fiat can effectively go to zero overnight, becuase your bank failed.

You're absolutely right. Also the failure of SVB and collapse of few companies would force ppl to convert their assets into BTC. The USDC collapse was also shocking along with SVB (although short lived) and CZ said he is converting most of his stables into BTC, ETH for safety in his most recent tweet.
Lets see if the current situation could trigger a bull run. The panic dump is most likely over imo.

Quote from: rat03gopoh on March 12, 2023, 09:41:32 PM

It's good news that everyone has the opportunity to raise their sats every time people fear just because of the news of a big financial institution's failure.

Non-believers will never learn actually. They sold during mtgox collapse, during binance regulation fud, during ftx hack, now during svb collapse. Its gonna be the same story everytime again and again. Only few real ppl who got heavy faith (like us), gonna make it.

rat03gopoh

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Bitcoin has never failed technically, although some consider that its fall in value is a sign of stalled sustainability. The fact is that they never realized that the reason for the decline was only due to external factors (most of which were due to the policies and conditions of centralized financial institutions), not an innate failure.

It's good news that everyone has the opportunity to raise their sats every time people fear just because of the news of a big financial institution's failure.

Hispo

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Some people may realize it, but I do not expect them to be many.
People are too accustomed to trust, after all, to the point they cannot trust themselves anymore with their own money. Nonetheless, the more citizens realize the centralized system has big points of failure, the better and more will see the advantages of Bitcoin and altcoins.

I would also like to point out how ironic it is that those who called Bitcoin a scam and a ponzi back in the day would have rather to have their saving in Silicon Valley Bank than buying satoshis. Tongue

STT

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They wont realize, they will be scared blindly and finance will take a hit. The apprehension generally hurts all speculative assets which includes BTC. Long term perhaps you have a point there but its a slow turn for people to get the difference from one asset to another. At present people dont see us as safe.

Dr.Bitcoin_Strange

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Despite the issue with SVB, I cannot agree that Bitcoin is more stable than fiat because Bitcoin can have massive volatility in just a few days or hours; the changes could be +$500 or -$800. But fiat doesn't get easily chocked by volatility; what only happens is that inflation reduces the value of fiat currency.

Banks must not fail to make people realize they can transfer their money through Bitcoin; after all, people have a choice whether to use cryptocurrency transactions or not. I can agree that every digital USDC or USDT online is 100% backed by cash, but Bitcoin is not backed by any asset because it's decentralized and not controlled by any organization.

Nwada001

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This will only make people realize they should not put trust in any centralized system but should be in charge of their own assets' security. To some point, this incident will put fear in all financial system customers, and most will run to crypto, which is why most will turn their house safe to the bank.

Quote from: jubalix on March 12, 2023, 05:34:23 PM

Fiat does not look so "stable" vs btc when fiat can effectively go to zero overnight, becuase your bank failed.

I don't necessarily think fiat can go to zero no matter how down the economy of that country is, unless the country is no longer in existence. If not, there will definitely be a value added to every fiat; its value will only reduce but it can't turn to zero.

jubalix

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Becuase people will realise you can't do a run on BTC as it is provably 100% backed. As more banks fail, if they do, the people in the queues and thier freinds and the media are going to realise you can always transfer your BTC.

Fiat does not look so "stable" vs btc when fiat can effectively go to zero overnight, becuase your bank failed.

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