{"id":128796,"date":"2020-03-25T13:00:24","date_gmt":"2020-03-25T13:00:24","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=128796"},"modified":"2020-04-25T09:29:48","modified_gmt":"2020-04-25T08:29:48","slug":"venture-capitalist-2020s-coronavirus-crisis-will-only-prove-value-of-bitcoin-and-crypto","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/venture-capitalist-2020s-coronavirus-crisis-will-only-prove-value-of-bitcoin-and-crypto\/","title":{"rendered":"Venture capitalist: 2020’s coronavirus crisis will only prove the value of Bitcoin and crypto"},"content":{"rendered":"

No market or facet of the economy has been spared<\/a> amid the coronavirus crisis, crypto included.<\/p>\n

Case in point: since the $10,500 high seen in mid-February, the price of Bitcoin has cratered<\/a> by 36 percent, posting similar losses to markets like American equities and commodities (namely oil).<\/p>\n

What's worrying is that a V-shaped economic recovery that optimists were hoping for is believed to be unlikely to happen<\/a>: consumer spending, especially spending on discretionary items, is likely to be much lower, even on the recovery, while it seems that the world has seen its worst unemployment shock<\/a> since the Great Depression of the 1930s. Put shortly: the economy could soon be the weakest it has been in decades.<\/p>\n

But, that's where crypto begins to deviate from the rest of the economy:\u00a0according to a number of prominent investors and analysts, the fundamentals and intrinsic value of cryptocurrencies are only being strengthened by this crisis, despite the waning prices of Bitcoin<\/a>, Ethereum, and other digital currencies.<\/p>\n

\"A<\/a>
Related: A prominent trader makes the case for $8.5k Bitcoin before making new lows<\/a><\/figcaption><\/figure>\n

This ongoing crisis could help crypto dramatically, says top investor<\/h2>\n

In a recent Twitter thread, Placeholder Ventures partner Chris Burniske, the analyst who coined the term “crypto-assets,” recently remarked<\/a> that this crisis “will pass, and crypto's fundamentals will have strengthened through it.”<\/p>\n

Burniske highlighted how “new technologies rise as old systems break, and often it takes a crisis to reveal the flaws of the old system in full.”<\/p>\n

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10\/ Most importantly, I hope everyone is staying as well as possible. While the future weeks are full of uncertainty, I know that eventually, this virus will pass, and #crypto<\/a>'s fundamentals will have strengthened through it.<\/p>\n

— Chris Burniske (@cburniske) March 21, 2020<\/a><\/p><\/blockquote>\n