Elnora H. and William B. Quarton Professor of Business Administration and Economics, Coe College, Iowa
Bitcoin setback, 12/16/2022
I am worried about Binance’s financial health and its impact on Bitcoin. I sold the majority of my Bitcoin today. It is disappointing for sure. But when the winter is coming, we definitely need to safeguard our food supply. When recession is almost a certainty, some liquidity is needed. I don’t want to sell any of my stocks, but something has to give. There went my Bitcoin.
But it is only temporary. I don’t think Bitcoin will disappear. I actually agree with Brian Armstrong, Coinbase’s CEO. He said in an interview with Ben Thompson, “If you fast forward another 10 years, are more people going to be doing things virtually than physically? Probably. Is a larger percentage of the economy going to be happening virtually? Probably. So crypto is incredibly well positioned as the inherent currency of the Internet, the more transnational global currency of the Internet. And so it’s just very hard for me to imagine a world 10 years from now, where there’s more e-commerce, more people using the Internet, more virtual economy, and crypto is not much bigger right along with that.”
Stablecoins will have a future, but we don’t know which one. Bitcoin will still be there as a risky asset, because it is the largest and oldest. Etherium might be there, too. But I am not sure about other cryptos.
I will come back to own some more Bitcoins. I just don’t know when. Maybe I will have a huge discount next year.
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