My phone rang and I was shocked to see an old friend of mine on the other line. He is a classic anti-crypto guy. Whenever we gathered for a chat, he would always be quick to pour cold water over my crypto rhetorics. We chatted over the next few minutes on a topic that just a day ago, I would never have fathom it to be a reality. It was about buying his first Bitcoin.
The recent banking crisis has definitely unnerved him. First, Silvergate. OK, that’s fine, he reckoned. After all, Silvergate was catering to the crypto market, a market that he used to detest. Next, SVB. Hmm… ok the financial contagion seems to encroach into his comfort zone. Next comes Signature Bank, another crypto-focused bank. Three sizeable banks collapsed within a span of 2 weeks forcing the Fed to come to their rescue in order to maintain the intricate web of trust that financial institutions rely on.
But, when he heard how Credit Suisse is also in perils, it was the straw that broke the camel’s back. This is it. He is not waiting around for the next major bank to fall. The last financial crisis of 2008 started with two banks and they are not really huge. Having gained all the knowledge from our past chats regarding crypto, he mustered the courage to give me a call and wanted to diversify his liquid assets into cryptocurrencies. The ethos of “Be your own bank” reverberated through him and reconciled with his intellect. Putting aside all biases, this friend of mine has finally crossed the line to be in the crypto camp.
One bitcoin was his start. But, like all thing in life, all progress start with numero uno. It will not be his last.
