“Bitcoin is a cheap thing, impossible to eradicate,” says The Economist

The prestigious newspaper ‘The Economist’ published an article comparing the resilience of cryptocurrencies to the tenacity of cockroaches. Both have remarkable figures, according to one of the most important economic newspapers in the world ‘survivability’despite efforts to eradicate them.

The unusual parallel between the financial world and the insect kingdom provides a vivid metaphor for the current state of cryptocurrencies, especially Bitcoin.

Initially, the article highlights the criminal uses of cryptocurrencies, such as money laundering, terrorist financing and kidnapping with ransom demands in Bitcoin.

Despite these applications, and even with the increased regulations and financial crises that have rocked the industry, Bitcoin has proven resilient, the article said.

“Bitcoin hit a two-year high in December this year, demonstrating its ability to bounce back in times of crisis.”

The technology underlying cryptocurrencies, blockchain, is cited by the paper as a fundamental reason for this resilience. The technology works independently of any central entity, which prevents its total collapse unless the value of the tokens falls to zero.

Moreover, despite market volatility, the decentralization and security that blockchain offers continues to attract interest, says The Economist.

Bitcoin can be a useful diversifier

The usefulness of cryptocurrencies goes beyond purely speculative investments. For example, in countries with authoritarian regimes, Bitcoin and stablecoins have been used to safeguard savings and conduct transactions, demonstrating their practical value.

Furthermore, the creation of non-fungible tokens (NFTs) by artists and museums highlights the diversification of the use of blockchain technology.

Although the cryptocurrency industry is in tough times, it continues to innovate. Developers are exploring new applications such as decentralized social networks and blockchain-based games. These developments hold the promise of wider use and adoption in the future.

The Economist article also highlights that unlike other speculative bubbles in history such as Tulip Mania or the Beanie Babies craze, Bitcoin has shown complex resilience.

“Bitcoin has shown a price pattern that suggests potential as a useful portfolio diversifier, due to its moderate correlation with other markets.”

Bitcoin is like cheap

Recent regulatory developments in the United States, such as the decision to allow the conversion of a large Bitcoin investment fund into an exchange-traded fund (ETF), indicate growing acceptance and regulation of Bitcoin as a legitimate asset.

According to The Economist, this could lead to greater institutional and individual interest in Bitcoin and other cryptocurrencies.

Finally, the article concludes with the idea that just as cockroaches play their role in the ecosystem, cryptocurrencies also have undeniable applications.

Portfolio diversification, protecting assets under oppressive regimes and resisting censorship and control are just some of its functions. And like cockroaches, Bitcoin has proven nearly impossible to eradicate as it continues to evolve and adapt in an ever-changing environment.

“Many feel an instinctive revulsion when they spot a cockroach. But despite their flaws, insects have uses: They convert decaying matter into nutrients and eat other pests, such as mosquitoes. Cryptocurrencies also have their uses, such as portfolio diversification and keeping money safe under despotic regimes. And, as has been shown, it is virtually impossible to kill.”

It is worth remembering that “The Economist” is considered one of the most important newspapers in the world for its influential approach to journalism.

Its reputation has been built throughout its history, dating back to 1843, and has established itself as a source of in-depth analysis and news on global events.

The influence of “The Economist” is also reflected in the impact it has on its readers, many of whom are business leaders, academics, politicians and other influential professionals.

Source: Live Coins