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2026-02-04 04:43:09 UTC

learnaboutbit on Nostr: In the event of a credit collapse, I feel confident about Bitcoin. While Bitcoin’s ...

In the event of a credit collapse, I feel confident about Bitcoin. While Bitcoin’s price could fall as leverage gets wiped out, the inevitable outcome of a true credit crisis is bank failures. Banks are some of the most over-leveraged institutions in the financial system.

When banks fail, Bitcoin demand tends to rise because people look for an alternative way to store their wealth. Whether Bitcoin falls 50% or rises 50% in dollar terms, holding it in cold storage keeps your Bitcoin safe. Can’t say the same for your dollars sitting in the bank (because they are not there).

#bitcoin #credit #dollar #economy