U.S. regulators have stepped in to back deposits at troubled banks Silicon Valley Bank and Signature Bank, reigniting the debate over 'too big to fail.' But fear not, as bitcoin has proven to be the ultimate hedge against financial crises in CeFi space. At the time of writing, bitcoin has risen 23% to $24,300 from its recent low in the wake of the Silicon Valley Bank crisis. I was also one of those who rushed to bitcoin in these few days. In fact, this is not the first time bitcoin has served as the savior in the financial market.

2013 Cyprus Crisis

In March of 2013, the government of Cyprus announced a plan to impose a tax on bank deposits in order to raise funds for the international bailout for troubled banking sectors suffering from the aftermath of financial crisis. The government of Cyprus announced a plan to impose a tax on bank deposits in order to raise funds for a bailout. The proposal was met with widespread opposition and protests, as many people feared that their savings would be at risk. This further led to a surge in demand for bitcoin in European countries.

Bitcoin price soared from around $40 in mid-March to over $260 in April, representing an increase of over 500%.

2015 China Stock Market Crash

Fast forward to 2015, and we saw another financial crisis unfold in China, this time in the form of a stock market crash. The Chinese stock market had been on a bull run for years. However, concerns about overvaluation, slowing economic growth, and regulatory changes led to a sudden sell-off in June and July. The proposal of introducing "circuit breaker" further exacerbated the market's decline as investors rushed to sell off their stocks before the circuit breaker was triggered, causing the market to lose nearly a third of its value.

Once again, investors flocked to Bitcoin as a safe haven asset. Bitcoin was trading at around $280 before the crash, but by the end of the year, its value had increased to over $430.

2020 COVID-19 Pandemic

Then it was the COVID-19, which we should still have fresh memory of. The pandemic created an economic crisis around the world, with many countries experiencing lockdowns and businesses shutting down. This led to an increase in government spending and central banks printing money to stimulate the economy. This led to capital flooding into other asset classes such as bitcoin. Bitcoin had risen from around $8,000 in March 2020 to $69,000 in Nov 2021.

Embracing Bitcoin Standard

"Anything That Can Go Wrong, Will Go Wrong.". Financial crises are almost inevitable in centralized economic system. The big question is, are we just going to sit back and let the banks continue their cycle of greed and moral hazard, or will we take action and seek alternatives? Since 2017, I have believed that bitcoin is a viable alternative. What's your choice?

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