• The banking crisis in the US and Europe has proved the points of many Bitcoin (BTC) and Ethereum believers.
• JPMorgan strategist Nikolaos Panigirtzoglou has commented that crypto supporters have been arguing for a long time that the crypto ecosystem is superior.
• The next bitcoin halving is expected to occur in 2024, which could cause an increase in its value.
Banking Crisis Proves Points of BTC Fans
The banking crisis in America and Europe – which appears to be drawing back somewhat at the time of writing – truly vindicated several BTC and Ethereum believers according to many analysts in the industry. At least three separate institutions in the U.S. shuttered their doors for good, while problems spread to several monetary houses in Europe like Credit Suisse, which was saved at the last minute when it was purchased for about $3 billion by UBS. People are now looking at BTC and other crypto holders as individuals with good heads on their shoulders.
JPMorgan Strategist’s Comments
JPMorgan strategist Nikolaos Panigirtzoglou commented in a recent note: For crypto supporters, the U.S. banking crisis exposed the weaknesses of the traditional financial system given banks’ maturity mismatch is susceptible to bank runs. Crypto supporters have been arguing for a long time that the crypto ecosystem is superior, not least because deposits are held in entities such as stable coins which as a digital form of money market funds are 100% backed with high-quality liquid assets and are thus less susceptible to runs. This sentiment is very different from the thoughts of JPMorgan head Jamie Dimon, who has referred to BTC and other forms of crypto as Ponzi schemes in past comments.
Next Halving Event
In 2024, bitcoin will experience its next halving event – happening every four years or so – where rewards delivered to miners will be cut by half; causing its value to become rarer and subsequently go up in price significantly over 12 months or so according JP Morgan’s Panigirtzoglou: This would mechanically double bitcoin’s production cost to around $40,000 creating a positive psychological effect because bitcoin’s production cost has historically acted as an effective lower bound.
Introductions Of NFTs
In addition, he also said that recently introduced Bitcoin-based non-fungible tokens (NFTs) could help asset do better as well due because metadata such as text [and] images can be inscribed on Bitcoin network itself without relying on smart contracts seen with other cryptocurrencies like Ethereum (ETH).
The banking crisis proved many points made by fans about cryptocurrency being more secure than traditional capital methods; however it still remains controversial due Jamie Dimon’s comment referring them Ponzi schemes . The upcoming halvening event should see prices rise but this can be supplemented further with introductions of NFTs .