The FED’s announcement to cut interest rates by 50bps has sent the crypto community into a frenzy. For most Bitcoin enthusiasts, it has been a reminder of why the current financial system is broken and why Bitcoin is the ultimate answer.
With the world now facing a financial crisis, it has also been a reminder to where it all began. The 50bps interest cut was last made in 2008, during the last financial crisis.
Two days later and Satoshi Nakamoto published the “Bitcoin: A Peer-to-Peer Electronic Cash System.”
Is Time For Bitcoin To Prove Itself?
In the wake of the 2008 financial system, Bitcoin was created. In fact, as analyst Travis Kling has pointed out, the so-called Satoshi Nakamoto, published the Bitcoin paper just two days after the FED announced interest rates cuts.
Its birth, however, was a slow and painful one as one can imagine It took years to get it working and even more years to get adoption. In fact, this continues to date.
With now over a decade gone, BTC is worth billions and it has become a digital asset that offers utility and value to the world.
Despite the highs and lows, it has proven to be working. But the last 10 years have been a smooth run for BTC some might argue and the real test is about to start.
Over the last ten years, the world has not come face to face with a major financial disaster.
Because of this, Bitcoin which was created to amend the broken financial system remains untested.
This could change in 2020. The world is set for ahead on collision with a financial disaster. This has even seen the FED make the same interest cuts as in the last financial crisis. This despite not knowing the full impact of the coming crisis.
Nothing To Stop BTC
This is by far the best and greatest test for Bitcoin since it was created. Already it has not had the best start. A week ago when the stock market was falling and economic fears heightened, Bitcoin slumped, failing as a safe haven.
Throughout the year, many expect this to change. This year most reckon will be pivotal to Bitcoin’s story. Its the year it is made into a world success or broken and forgotten.