• Wed. Jun 22nd, 2022

Digital Currency Is Collapsing Again—Why? Joshua Henslee shares his thoughts

ByHazel R. Lang

Jun 18, 2022

On Monday, June 13, many players in the digital currency markets woke up to a shock – a second major crash. BSV developer Joshua Henslee posted a video sharing his thoughts on why this is happening and why he thinks we are entering a longer-term bear market.

Bears everywhere—Celsius freezes

Henslee begins by reminding us that he recently posted a video explaining why digital currency has stopped pumping. He lets us know that this video will reiterate some of the points he made in this one, but new events have unfolded, which makes him surer that we are in a bear market.

What events is he referring to? Primarily, lending platform Celsius froze trades and user withdrawals, leading to rumors that it may be insolvent. Henslee jokes that this reminds him of the temporary suspension of the USD for gold which turned out to be permanent.

In addition to events surrounding Celsius, Henslee is bearish because the entire macro landscape has changed, and he sees no reason to be bullish. Following the LUNA/UST implosion, sentiment had already taken a hit, and the watchful eyes of regulators were already wide open, but with pullbacks frozen in Celsius and Tether recently ceasing to print new stablecoins, the outlook is bleak.

According to Henslee, the macroeconomic situation does not inspire much hope either. With the Federal Reserve and other central banks raising interest rates to combat runaway inflation, it becomes more likely than not that digital token prices will continue to decline.

A house of cards built on quicksand

Henslee makes the critical observation that this industry is built on the idea that Satoshi Nakamoto was wrong when he said Bitcoin could scale to global dimensions. None of the other blockchains or coins needed to exist if Satoshi was right, and so if he was, which is proven on Bitcoin SV, the whole industry rests on faulty foundations.

In Henslee’s view, nothing ties any of the currently hot tokens to any real value, and therefore the bottom is unlimited. He thinks many VCs know this, hence the price drop of tokens like SOL as they head for the exits.

Henslee reminds viewers that he’s not happy about any of this. Although the industry is ridiculous, real people get hurt in big accidents. To him, it’s just the same old elites who rob the poor and cheat them out of their hard-earned money. He reminds us that Bitcoin was meant to liberate ordinary people and usher in a new, fairer system. Instead, it has become just another Ponzi scheme to scam unsophisticated investors.

In conclusion, Henslee tells us that, while difficult to witness, the ultimate collapse must occur. When it does, he thinks people will start asking hard questions like what is blockchain technology, and then the era of utility can begin.

Key Takeaways: Tough Times Ahead, But Bitcoin Will Survive and Thrive

Like many of his other videos, this one expresses Henslee’s central thesis that much of the “crypto” industry is a scam, that a huge annihilation will occur at some point, and that Bitcoin SV has a bright long-term future.

How can Bitcoin SV survive the cataclysmic events to come? The answer lies in utility. Unlike many other blockchains and the tokens associated with them, people are creating real and useful applications on Bitcoin SV. Although it is not the only blockchain with real development, it is the only one that evolves infinitely and is capable of small payments.

If Henslee is correct, digital currency speculators should be extra cautious in the weeks and months ahead. However, those working on apps that bring real value to the world shouldn’t worry and should take a long-term view.

Watch: BSV Global Blockchain Convention Presentation, Making Blockchain Easy for Real-World Use

New to Bitcoin? Discover CoinGeek bitcoin for beginners section, the ultimate resource guide to learn about bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.

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