If Bitcoin crashes, the companies that have strong support from their communities
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Bitcoin has a market cap of 137 Billion. So, what if Bitcoin crashed, what impact would it have? For reference, the 2008 economic crisis resulted in Americans losing 12. 8 trillion dollars. At the same time, according to Bloomberg, 40% of all Bitcoins are held by approximately 1000 people. The other 60% is primarily made up of speculative individual investors since much of the international financial system in place has been staying away from Bitcoin. This means that Bitcoin crashing will have a minimal impact on the overall world economy. So, where will it have an impact? While the crash of Bitcoin would not have a hefty impact on the world economy, it would certainly be a wrecking ball for the crypto one. The vast majority of the crypto space relies on Bitcoin to see profits and even though many projects have their own technologies, most of them are not developed enough, or well-known enough, to survive on their own. This means that much of the remaining crypto-economy, approximately another 150 Billion, would dwindle until only the strongest companies with real-life utility would survive. This brings us to the question; would this be a bad thing? From 1997 to 2001 the world witnessed the meteoric rise and subsequent crash of thedotcom bubble. But instead, those companies that were strongest and those that brought the world into a new age survived. Companies like Amazon and eBay who pulled out of the crash stronger than ever. Now, the internet is a thriving marketplace that provides the backbone for many of the world’s biggest industries. So, in short, if Bitcoin crashes, many individual investors will lose money, there would be blood sweat and tears, Twitter would explode, Youtube would cry out in horror, 1000 Bitcoin whales would have a really bad day, but life would go on, and in the end, would it be a bad thing? No. Speculative investing is cat nip for scammers and get-rich-quick schemes. If Bitcoin crashes, the companies that have strong support from their communities and who are on track with what they want to accomplish will bring about a new and more stable era of cryptocurrency. It would hurt, but in the end, what doesn’t kill you, makes you stronger.

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