“The demise of Silicon Valley Bank is definitely good for bitcoin”

The failed banks Silvergate and Silicon Valley Bank (SVB) were intertwined with the crypto sector. A large part of the investments went through these banks. The collapses may also have major consequences for the crypto sector. But according to the CEO of hardware wallet manufacturer Trezor, Josef Tětek, these consequences are not necessarily bad. According to him Is it good that the banks have collapsed?

Good news for Bitcoin

According to Tětek, the reason for the chaos regarding the banks last week lies with the banks and not with the crypto sector. The banking crisis will only push bitcoin (BTC) forward more as a safe haven and risk-off asset. He also refers to the banking crisis of 2008. Not long after, Bitcoin was created by Satoshi Nakamoto in response to the crisis.

According to Tětek, the sharp rise in the price of bitcoin this week is therefore also a direct result of the collapse of the banks. According to him, the collapse of the banks is a clear reminder why we need bitcoin.

“The current downfall of certain banks is definitely good for bitcoin. But it is less good in terms of crypto custody options. But we think the best option is always self-custody.”

Banks are the problem

According to Tětek, there is a fundamental problem with the traditional banking system.

“Banks no longer keep our money, but they lend it out and buy volatile assets with it. Customers are in fact the bank’s creditors. It is understandable that people choose alternatives such as bitcoin.”

According to Tětek, the banking chaos of the past week is therefore essentially good news. Another rotten apple to be removed. But concerns were also expressed about the whole event. Crypto investor Scott Melker wonders who should finance the crypto industry after the collapse of the banks.

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