When the price of gold and silver bullion recently shot up, many leaders in the Bitcoin community expressed surprise that Bitcoin prices didn't go up too. In fact, Bitcoin crashed.
The last time the Straight of Hormuz was closed, the prices of gold and silver bullion doubled. Bitcoin didn't exist back in 1972 so nobody can say what will happen to Bitcoin prices if the same circumstances were repeated.
The USS Gerald R. Ford was christened on 9 November 2013 and incidentally, President Trump was elected for the first time on 9 November 2016.
News reports tell us that President Trump has asked the Ford to leave the Caribbean and travel to Iran. Don't be surprised if the USS Gerald R. Ford never reaches the gulf: it may show up next week in Cuba or Greenland instead.
When President Trump was elected back in 2016, I published a blog about two movies that anticipate the Trump administration. One of them concerns conflict in the Straight of Hormuz and there has never been a better time to watch it.
If Bitcoin prices do take a big fall so quickly after the last big drop then it may permanently tarnish the reputation of Bitcoin and other cryptocurrencies too. If new users become scared of buying Bitcoins then the existing users will find it harder to convert their coins back to cash when necessary.
Continue reading the inconvenient truth about cryptocurrency.
The author holds an MIT MicroMasters in Data, Economics and Development Policy. He does not hold any crypto "assets". Swiss financial regulator FINMA will neither confirm nor deny an investigation on this blog precipitated the resignation of their deputy CEO .