Every crisis is an opportunity for bitcoin’s rise: From Tonga accepting bitcoin donations to lira crash

Recently, an underwater volcano in Tonga, an island country in the South Pacific, erupted continuously and violently. Its energy is equivalent to 1,000 atomic bombs and tsunami waves, reaching the coasts of Japan, the United States, Australia and China. The volcanic eruption and the tsunami hit Tonga for a time, causing the whole territory of Tonga to lose contact, the national communication of Tonga was interrupted, and the king of Tonga was evacuated urgently.

At present, Tonga is still in disaster, and many countries have expressed their willingness to provide assistance to Tonga.

However, aid to Tonga may be delayed due to the pandemic.

A Tongan diplomat said the Tongan government may not allow foreign aid workers to board the island because of concerns about the introduction of the new coronavirus, and any aid sent to the country will also be subject to quarantine.

Curtis Tu’ihalangingie, a Tongan diplomat in Australia, said the Tongan government was negotiating rescue priorities.”Tonga is concerned that aid will spread the coronavirus to islands that don’t have it,” he said. “We don’t want another tsunami, a coronavirus tsunami.”

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Aside from groceries, Bitcoin could play an important role in Tonga’s economic aid.

Facing the sudden disaster, Tonga not only has to face the immediate disaster relief crisis, but more importantly, it has to face the severe pressure of post-disaster reconstruction. After the domestic life and economy collapsed, Tonga needs more economic assistance.

The complexity of the traditional financial system will greatly slow down the reconstruction of Tonga. Taking the existing currency system as an example, if other countries want to support Tonga, in addition to the direct support of personnel and materials, it will definitely involve different countries in the two countries. The docking between currency systems, according to the existing currency system, no matter what kind of intermediary currency is used for conversion and docking, it will cause huge consumption in terms of time and cost.

Issues such as donations between ordinary people in different countries will also require many obstacles, which will lead to the miscarriage of good deeds.

However, if the cryptocurrency represented by Bitcoin is launched, it will make things simpler and more straightforward. Only by establishing a response account in Tonga, individuals, institutions and governments around the world can easily and quickly realize donations, loans and assistance. And so on, and reduce costs to quickly help Tonga resume disaster assistance and post-disaster reconstruction.

In fact, the Tonga bitcoin rescue fund has now been launched.

According to Cointelegraph on January 17, last Friday, the Pacific island nation of Tonga experienced the shock wave of a large-scale volcanic eruption and a tsunami. In response, Twitter user onair_blair urged bitcoin proponent and former Tongan lawmaker Lord Fusitu’a to set up a wallet address that would allow people to donate bitcoin for relief funds in Tonga.

Subsequently, Lord Fusitu’a responded with a BTC wallet address and a link. The address has received a total of 0.10794983 BTC (~$4625.29) since yesterday.

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Bitcoin can be seamlessly connected around the world. As long as it has a network, it can easily complete functions such as payment and transfer. Compared with traditional currencies, it has the advantages of uniformity, speed, and low cost.

Ark Invest founder, CEO and chief investment officer – Catherine Wood said that Bitcoin is the first global private digital currency system.

Tonga aside, Bitcoin’s role in the crisis has grown stronger as its consensus has grown.

Every crisis seems to be the best opportunity for Bitcoin, especially in the case of national disasters and economic pressures, Bitcoin has become a new and important product to deal with the crisis.

There was a conflict between the United States and Iran in 2019. At that time, driven by risk aversion and speculative demand, Bitcoin rose rapidly from a trough of $6,500. Afterwards, although it fell and rose, it basically stood at 8,500, allowing the market After smelling the bull market, Bitcoin gradually opened the upward channel until the halving came to promote the birth of a super bull market.

However, the fundamental reason for the rapid development of Bitcoin lies in the opportunities brought by traditional financial performance. The economic crisis is the root of the real rise of Bitcoin.

The background of Bitcoin’s birth in 2008 was the economic crisis. The financial crisis triggered by the bankruptcy of Lehman Brothers swept the world. Against the background of the unlimited quantitative easing policy, the credit of the currency system represented by the US dollar collapsed.

The emergence of Bitcoin, the realization of the ideal of a super-sovereign global currency by technical means, thereby combating hyperinflation, has since opened the legendary and tortuous story of Bitcoin.

In the past two years, under the overall blow of the new crown epidemic, the financial crisis has spread again. This is a huge test that Bitcoin will face since its birth, and it has also become a huge opportunity for the development of Bitcoin.

Bitcoin not only created an unprecedented bull market climax, but its price soared to a high of $69,000, nearly 3.5 times higher than the previous bull market’s high of $19,800, renewing the Bitcoin market myth.

At the same time, the blockchain technology represented by the technical upgrade of Ethereum 2.0 and Polkadot cross-chain is progressing day by day, giving birth to the emergence of application innovations such as Defi, thus laying the basic model of decentralized finance, coupled with NFT With the emergence of innovative applications, the blockchain ecosystem is further expanding.

As the market goes up, the encryption ecology is becoming more and more perfect, the consensus of Bitcoin is getting stronger and stronger, and the scale of users is also expanding, rewriting the pattern of the cryptocurrency market.

Against the background of this economic crisis, Bitcoin has achieved historic development:

It has firmly established the attributes of safe-haven assets and has become digital gold; developed and innovated the financial model and established a new decentralized financial system; completed the mainstreaming out of the circle, and has become accepted and favored by traditional markets including institutions and financial markets. product, and multiple related products were successfully launched at the same time; promoting the development of new network trends based on the Metaverse…

Despite all kinds of siege and blockade, Bitcoin still survived tenaciously under the test of countless deaths, and has developed into a more complete decentralized financial system integrating encrypted tokens, Defi, and NFT.

So far, Bitcoin still maintains a high-speed development trend.

On the one hand, the pressure of the economic crisis has not been lifted, and the inflationary pressure is increasing day by day. On the other hand, the new crown epidemic is still facing a major crisis. Whether it is the mutation of the virus or the expansion of the spread, it shows that the situation is not optimistic.

According to the previous prediction of Tesla founder Musk: “(The economic crisis) may be in the spring or summer of 2022, but no later than 2023.”

If the prediction is true, then Bitcoin is still in the golden stage of development, this bull market may continue, and the price of Bitcoin may continue to hit record highs.

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Most recently, the collapse of the Turkish lira is the highest proof.

According to a related report from the cryptocurrency exchange KuCoin, with the collapse of the lira, Turkish crypto investors have become interested in assets such as encrypted stablecoins, and most investors are choosing Bitcoin BTC and USDT to fight inflation. Currently, more than 5 million people in Turkey have accounts on cryptocurrency exchanges.

Born in the crisis, and in the development of the crisis, Bitcoin has proved its value in fighting the traditional financial crisis with facts, and it has also made it clearer that Satoshi Nakamoto created Bitcoin.

Now, Bitcoin has become an important target for institutional and retail investors, not only on the balance sheet of more companies, but also considered by pension funds.

Former Federal Reserve audit manager and bitcoin consultant Charlene Fadirepo said in an interview that bitcoin is definitely a tool for social justice. Fadirepo called 2021 a “breakout year” for bitcoin, noting that major banks already have high-net-worth clients investing in bitcoin, and that large corporations have started accumulating bitcoin and holding it as an asset. At least seven major banks, including Citigroup, JPMorgan, and Morgan Stanley, are heavily invested in Bitcoin.

Bitcoin has played an increasingly important role in wages, commodity payments, donations, etc. Bitcoin has also evolved from niche geek users to mainstream, and is infiltrating more and more groups.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/every-crisis-is-an-opportunity-for-bitcoins-rise-from-tonga-accepting-bitcoin-donations-to-lira-crash/
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