The recent crash in prices of cryptocurrencies has not shaken the unflinching faith of the crypto-community elites. The one leading the line of optimism is Charles Hoskinson, the CEO of Cardano. The price downfall since the last week has hit the crypto markets hard, even gold which looked set to be the mainstay and a perfect safe haven to whether the falling stock storm came crashing down. The tumultuous events lately made FED chairman to release a statement to restore the faith of the investors in the strength of the economy.
Crypto usually comes out unscathed in scenarios like these, however that wasn’t the case this time around, and it failed to be the best hedge. Crypto runs solo, lacks association with the traditional markets, and this is what helps its cause even during the downfall of markets. However, in the last week, as conventional markets hit one of their most mammoth rock bottom in recent memory, crypto followed suit.
Charles Hoskinson unwavering belief is that crypto is still the top-notch hedge. He boasted that if Coronavirus escalates, crypto would be the only asset to come out on top as stocks would dwindle.
Dear markets, just an FYI, crypto is the best hedge in the world against a global pandemic. Should SARS-CoV-2 get big, the stock market is done and governments will collapse. Things that live in the digital world are resistant to this and will benefit from the social change
— Charles Hoskinson (@IOHK_Charles) February 28, 2020
His claims came just a few hours after FED Chairman Powell talked about the severity of the market loss. The stock market wiped out around $6 billion, and people perceive this situation as a borderline financial crisis.
The FED has slashed rates to inject some life into the economy, and Chairman Powell stated that they would do everything in their capacity to bring some stability in the marketplace, it won’t be surprising to see more rate reduction.
Since the Fed claims the U.S. economy is strong, why would it need to take action to support it? Their statement was clearly aimed at the stock market, which is not strong but in dire need of support. Before it takes decisive action to prop it up, the Fed is trying to talk it up.
— Peter Schiff (@PeterSchiff) February 28, 2020
Even though he is trying to comfort the country in this travesty, he added that the corona catastrophe is an economic predicament.
Traditional Market has Government to Fall Back on; Bitcoin Doesn’t
Even after Charles Hoskinson comforting comments, the crypto community is staring down a barrel of despair, by virtue of the fact that if the stock market stalls, the government would help them in their ailing situation. The same can’t be said for Bitcoin as its a bit of a loner given its decentralized nature.