Bitcoin has grown to unprecedented levels this year, and according to Konstantin Anissimov – the executive director of crypto exchange CEX.IO – the asset has become “too big to fail.”
Anissimov: Bitcoin Is Too Big To Fail
The asset was initially trading for just over $7,000 during the early weeks of 2020. Despite a bull run that took the currency into five-figure territory by the time February arrived, the coronavirus took a heavy toll on financial markets everywhere, causing stocks, gold and even bitcoin to stumble hard. The world’s number one digital asset fell by more than $6,000, dropping below the $4,000 mark for the first time in over a year.
However, at press time, the currency is trading for well over $19,000 per unit. To say that bitcoin has come back would be something of an understatement. The currency has turned itself completely around and is no longer a simple speculative asset. Rather, many traders and enthusiasts see bitcoin as a hedge tool of sorts – something that can potentially protect one’s wealth during times of economic strife and inflation.
In a recent interview, Anissimov explained:
Personally, I would struggle to see even multiple reasons combined together [for bitcoin prices to fall to zero.] I don’t believe the argument that it’s worth nothing holds anymore. [It] is too big to fail and it’s not financed by debt.
Anissimov is presently in charge of one of the world’s largest cryptocurrency exchanges. It has done well in Europe and other territories and is now focusing its attention on establishing more of a presence in the United States. The exchange’s services are available in all U.S. territories except for New York, Texas and Louisiana. These states suffer from regulatory scrutiny that has gotten in the way of additional crypto development.
As it stands, bitcoin has garnered far more media attention given how much spending and overprinting regions such as the United States, the United Kingdom and other places have witnessed in the past few months. This stems largely from the coronavirus pandemic that has spread throughout the world since March, and things aren’t looking pretty. The U.S., for example, already issued mass stimulus checks to most Americans about seven months ago, and talks are centering on a possible second stimulus. To put things simply, a lot of money has already been shelled out.
This has caused a potential downgrade in currencies such as the U.S. dollar, and many are turning to bitcoin to potentially keep their wealth secure during these harsh times.
Institutions Are Part of the Equation
Anissimov also points out that many institutional players are now paying more attention to bitcoin. He comments:
That hype is substantiated by some of the major players paying closer attention to bitcoin… It is a means of exchange of value. It is an ecosystem that works.