Opinion | Analyst: The "perfect storm" has formed, and Bitcoin has become a key global asset

A growing number of Bitcoin analysts are sounding the alarm that the flagship cryptocurrency needs to prove its worth during the current financial crisis, asserting that now is the time for decentralized assets to prove their resilience amid growing global economic instability.

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Tone Vays, a long-time Bitcoin maximalist, sounded the alarm in a tweet last June when Bitcoin’s price quickly rallied above $13,000. Vays noted at the time that such rapid leaps in value often lead to significant corrections:

“Flashback: June 2019, when BTC hit $13,800 — “I thought a drop to $3,000 was impossible, but now I think it will” - @UglyOldGoat1 — “I can see an extended 6-9 month #Bitcoin bear market. Watch the video: https://www.youtube.com/watch?v=ygRZZj5HCnE”

The key takeaway from the video is Vays’ assertion at the time that Bitcoin should recover from any price drop within 6-9 months. Granted, now is the time for that recovery to begin, but the flagship cryptocurrency has yet to rebound. It’s worth noting that Vays remains very bullish on Bitcoin’s future, but seems reluctant to predict a major price surge anytime soon.

Peter Brandt, an analyst who has long promoted the bullish potential of Bitcoin, insists that a “perfect storm” has now formed to make Bitcoin a key global asset. He tweeted:

“This is the perfect storm for BTC. If Bitcoin can’t rebound from this, crypto is in big trouble.”

On March 26, Brandt was more blunt, responding to a question about Bitcoin’s potential by noting that the cryptocurrency has very little time to prove itself.

“I personally think BTC doesn’t even have much time to declare itself right or wrong.”

Bitcoin will prove itself through adoption, not speculation

While market analysts may argue about technical data that may not indicate a price recovery, the fact remains that development and adoption will ultimately determine Bitcoin's fate. The cryptocurrency is still under development and remains primarily a speculative asset. Until a large number of consumers use it for the purpose for which the digital currency was designed, its value will continue to be extremely volatile.

Of course, the same is true for altcoins. All blockchain projects are still far from finished, and investment in any blockchain project should be based primarily on research into its potential for mass use. Within this category, some projects are more promising than others.

The current economic problems around the world do offer great prospects for Bitcoin to demonstrate its value as a safe haven asset. It can also prove its value as an inflation-proof decentralized currency. Bitcoin has long survived past challenges, and its decentralized architecture remains intact. This fact will not change if it fails to appreciate in the next few weeks.