Bitcoin and cryptocurrencies's prices have fallen more than 40 % from their recent peaks.
Bitcoin and cryptocurrencies are going through their first really tumultuous period since they came into existence and started actively trading in 2013.
Up till now, cryptocurrencies are behaving like a typical risky asset class, selling off on news on the war in Ukraine. Many investment analysts predict the current crisis could prove the end of Bitcoin and other cryptocurrencies. They cite the lack of cash flows backing cryptocurrencies and their nascent history. As if there are any cash flows in the form of dividends backing Amazon or Facebook's stocks.
Personally, I think Bitcoin and cryptocurrencies in general will suvrvive the current havoc and thrive in the future. The main reason is that Bitcoin and cryptocurrencies save people and corporations time, money and effort. The blockchain algorithm, which is essentially a hashing, decision tree algorithm, will make almost all production processes more efficient.
Why are gold and diamonds a good store of wealth? Because both gold and diamonds are virtually indestructible. A physicist who managed to dissolve gold got the Nobel Prize. But afterwards, the gold in question was quickly restored.
Bitcoin, similarly is virtually intractable by governments and indestructible, which makes it a good store of wealth and easily transferable in times of military conflict.
Crises, actually are when asset classes prove their worth, agility, flexibility and anti fragility.
In my opinion, Bitcoin and cryptocurrencies will live through the current chaos and emerge as a stronger investment alternative afterwards.
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