Deutsche Bank vs. Bitcoin
The banking establishment, where it felt safe, feels threatened. Not unfairly. It is at risk of disappearing like dinosaurs in the new map of the financial landscape, due to blockchain applications.
New high in Bitcoin since yesterday! The conditions we need to qualify for the "bullish" period are ideally met. Above right in the 4-hour chart, we show the new top with the green arrow. In recent hours Bitcoin has traded close to $ 9,400.
With psychology up, we don't want much to cheer about. We found it amusing that Peter Schiff accused Bitcoin because his wallet did not recognize his password. We laughed when he had to admit that he was entering the wrong code a little later. The most hilarious thing, though, was that it revealed on its own that it had Bitcoin in its possession, even though it is considered one of its most famous critics!
But yesterday's news is even more fun: Deutsche Bank (DB) urges us not to buy Bitcoin because it has high volatility !!! They even have a diagram proving their research. Mercy, guys! Someone else would say it, it's good, but you?
In the diagram below we compare DB with Bitcoin. The blue line is the flagship German bank and red, the leader of cryptocurrencies.
Is there a man in the world who can be trusted by the blue market, losing 95% of its peak? This rate of decline has never been Bitcoin, even in its worst moments. We see such diagrams in the crypto market only from startups that have closed or are just one step away from locking.
Yes, Bitcoin is volatile. It is normal as it is a common feature of early stage technologies. The excitement alternates with the denial of excessive expectations. However, its price route can offer steep ups and downs, but the key direction is one. And it's upward. Undoubtedly.
DB people in their research insist that Bitcoin has no intrinsic value. Beyond that other colleagues disagree with them, such as JP Morgan. And they were saying it themselves, until they made a spectacular comeback, discovering intrinsic value in Bitcoin!
Whatever the case, it only sounds like a joke to accuse others of having no value. We're talking about a bank that has less and less revenue each year, which is shrinking profits, which the debt-to-equity ratio would frighten even the most daring speculators.
At least they had the foresight not to refer to suspicious transactions. Not too long ago, at a meeting of shareholders, an angry small shareholder spoke up saying there was no banking scandal in the world that would not have involved the bank!
Dinosaurs once dominated the Earth. They seemed invincible. And where a meteor came from nowhere and disappeared. Other species dominated, with the ability to adapt to the demands of an ever-changing environment.
Bitcoin appeared as a comet, which at some point became visible on the planet of the financial system. The intelligent beings that inhabited it were treated like dinosaurs. At some point they looked up and began to wonder what this glowing object in the sky was. Some were worried because they saw it grow. Others were happy because they passed it for sunset. Most, however, were concerned about finding food. They had no time to waste!
The banking establishment, where it felt unaffected, and even stronger than the 2008 financial crisis ("too big to fall" - too big to fail), feels threatened.
Not unfairly. It is at risk of disappearing like dinosaurs in the new map of the financial landscape, due to blockchain applications.
Banking people have gone through the five stages of mourning over crypto. At first, they ignored it (denial). Then they treated it as an annoying scam (anger). Then they started spending endless billions to learn what it is and how to deal with it (negotiation). Shortly afterwards, they realized that they couldn't stop it (depression) and that the era of "too big to fail" was beginning to fade away rapidly. They have now reached the final stage, that of acceptance. Commercial banks have realized that traditional banking will not stay the same forever.
As a rule, those who resist change are those who benefit from the current structure. They have no reason to disturb her. If you ask someone who is favored by the banking establishment what he thinks of crypro, it is like asking someone in the king's courtyard what he thinks of democracy.
Still, even though they are well-versed in their perks, they have realized that it would not make sense to discuss whether or not Bitcoin will catch on. All they have to decide is whether to accept it as a spectator or to actively participate and transform to escape it.
Banks' effort is not much different from that of newspapers, when they blamed the Internet in its first steps. Others were justified, because they saw what was to come, others ignorant, because they did not understand. We saw what they finally did. As well as what benefit they had that they were informed and entered the site early.
