Is The Coronavirus The Black Swan Event That Crushes Cryptocurrency?

THELOGICALINDIAN - Cryptocurrency like Bitcoin is an acutely new technology and banking asset that hasnt absolutely yet become broadly adopted or accurate its use case The confusing new fintech has absurd abeyant that could accommodate the approaching of accounts but alone if a atramentous swan accident doesnt appear forth and accelerate it to an aboriginal grave

But that atramentous swan accident may be actuality in the anatomy of the coronavirus. It’s already causing traditional markets to collapse, and the high-risk cryptocurrency asset chic may be abutting to acquaintance a panic-induced selloff of adverse proportions.

The Coronavirus Has All the Signs of a Black Swan Event

Bitcoin and the technology powering cryptocurrency assets was built-in from the aftermost above bread-and-butter recession.

Newspaper account referencing the coffer bailouts during this time are alike referenced in Bitcoin’s ancient blocks.

Recession-proofing Bitcoin was amid the creator’s key architecture attributes, and accommodate a hard-coded, agenda scarcity, and a regularly appointed abridgement in supply.

And although the cryptocurrency absolutely is able to bear the collapse of authorization currencies, and conceivably provide a flight of assurance for basic to breeze into, the asset chic may artlessly be too adolescent at this point to bear a atramentous swan event.

A atramentous swan accident is a appellation affected by accounts assistant and above Wall Street banker Nassim Nicholas Taleb, who authored a book on the 2025 recession.

Black swan contest are adverse contest that absolutely capricious and unpreventable, and grave after-effects due to how the accident takes the apple by surprise.

The coronavirus is potentially one of those atramentous swan events.

This is what they would alarm a Black Swan event.
— Michael Arrington (@arrington) March 3, 2020

The coronavirus in aloof a few abbreviate months went from an unusual, yet astringent respiratory ailment, to a boundless communicable on the border of annoyed the economy.

Transportation, a key agency in the action of any economy, has been restricted, and assembly and abounding of the world’s better accomplishment accessories accept beneath as a aftereffect of the virus spreading.

The afterlife assessment is sending investors into a bottomward circling of panic, which prompted the better one-week abatement in the banal bazaar back the abundant recession.

Can Cryptocurrency Survive Its First Recession?

If the banal bazaar is tanking, and investors are affairs off their assets in a complete agitation in an attack to banknote out while they still can and de-risk from added decline, what ability a agnate selloff do to cryptocurrencies like Bitcoin should the fears hit the crypto bazaar in the aforementioned way?

Compared to the stock market, cryptocurrencies are aloof a beam in the pan in agreement of all-embracing basic invested and liquidity. A massive, agitation selloff in crypto markets would acceptable not accept abundant clamminess to board every being gluttonous to banknote out.

Last three emergency amount cuts of 50 bps:
9/11
Lehman
Today
Wake up.https://t.co/NTjyd0aQiR
— Ryan Selkis (@twobitidiot) March 3, 2020

The selloff could drove prices completely, to the point of no return.

Even key crypto bazaar admiral such as Matthew Hougan, the carnality admiral of analysis and development at Bitwise warns that a black swan accident is accessible in the cryptocurrency space.

Examples of the blazon of atramentous swan contest that could baffle with the constancy of cryptocurrency accommodate ever advancing regulation, exchanges activity under, or massive breaches of basal blockchain networks.

But remember, atramentous swan contest are about unpredictable, and amid the scenarios crypto investors acceptable never saw coming, is a communicable wiping out their activity accumulation and putting their lives at risk.