{"id":149432,"date":"2021-01-07T22:30:00","date_gmt":"2021-01-07T19:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/what-type-of-situation-if-any-could-crash-bitcoin-vc-firm-partner-speculates\/"},"modified":"2021-01-07T22:30:00","modified_gmt":"2021-01-07T19:30:00","slug":"what-type-of-situation-if-any-could-crash-bitcoin-vc-firm-partner-speculates","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/what-type-of-situation-if-any-could-crash-bitcoin-vc-firm-partner-speculates\/","title":{"rendered":"# What type of situation, if any, could crash Bitcoin? VC firm partner speculates"},"content":{"rendered":"<p>&#8220;<strong># What type of situation, if any, could crash Bitcoin? VC firm partner speculates  <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDEvYjMwOTk1ZjEtYjBjMi00ODUyLTg5ZmItYjMyOWZhY2NjYzkxLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>During the market downturn in March 2020, Bitcoin (BTC) fell over 50% in value across a two-day period. Traditional financial markets also dropped vastly in March. Although Bitcoin posted a standout recovery, going on to smash all-time price highs, one might wonder what, if any, condition could instigate a similar future drop for crypto\u2019s largest asset. Dermot O&#8217;Riordan, partner at venture capital outfit Eden Block, recently gave his thoughts on the matter.\u00a0<\/p>\n<p>\u201cIn the short-term Bitcoin\u2019s value prop as a non-sovereign censorship resistant hedge to the dollar is growing stronger by the day,\u201d O&#8217;Riordan told Cointelegraph. \u201cSaying that, Bitcoin\u2019s volatility isn\u2019t going away anytime soon, and I expect to see a lot of volatility for years to come from those in the money taking money from the table,\u201d he said, adding:<\/p>\n<blockquote><p>\u201cSomething often overlooked however is that every new price milestone unlocks a new larger class of institutional investor with a mandate to purchase the asset, which will dampen sell-side pressure.\u201d<\/p><\/blockquote>\n<p>Bitcoin has won over a number of mainstream financial giants, including MicroStrategy, MassMutual, Paul Tudor Jones and others. Such players sank significant cash into the digital store of value in 2020, with the buying trend heating up in the latter portion of the year.<\/p>\n<p>Although BTC\u2019s price continues to rise, recently breaching $40,000, the asset still has its liabilities. O&#8217;Riordan noted Bitcoin\u2019s top two longer-term risks. The first: \u201cHow its rough consensus governance mechanism handles questions around the security budget of the protocol if fees don\u2019t rise sufficiently to supplement ever reducing Bitcoin issuance,\u201d he explained. The second he labeled as \u201cthe risk of the institutionalisation of Bitcoin hindering the trustless base layer.\u201d<\/p>\n<p>Bitcoin has overcome substantial adversity over the past 12 years, however, each time eventually recovering and resulting in greater adoption.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/what-type-of-situation-if-any-could-crash-bitcoin-vc-firm-partner-speculates\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# What type of situation, if any, could crash Bitcoin? VC firm partner speculates &#8221; During the market downturn in March 2020, Bitcoin (BTC) fell over 50% in value across a two-day period. Traditional financial markets also dropped vastly in March. Although Bitcoin posted a standout recovery, going on to smash all-time price highs, one&#8230;<\/p>\n","protected":false},"author":1,"featured_media":149433,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/b30995f1-b0c2-4852-89fb-b329facccc91.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74355,71745],"class_list":["post-149432","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-adoption","tag-venture-capital"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/149432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=149432"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/149432\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/149433"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=149432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=149432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=149432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}