Digital gold is often referred to as black swan. But few people have any idea what the term means. It is often used in an expression whose meaning is that there is no black swan in nature. But if we move away from etymology and get closer to the financial world, the phrase was adapted by Nassim Taleb for the sphere of economy. He described the WTC as an unlikely and unpredictable event, which could have a huge impact on the sphere of virtual currencies.
Black Swan-type events fall into two types: good and bad. For example, the housing market in the states during the crisis phase 13 years ago was a negative black swan and had a bad effect on the state’s economy.
And the progressing Tesla and the company’s shares, which surpassed the capitalization of the world’s nine largest car manufacturers combined, can be described as a positive black swan. After all, in 2010, no one could even in theory imagine that electric cars would reach a new level of development, moreover, so quickly.
VTS cryptocurrency has all the possibilities and huge potential to become an unexpected positive black swan. Elon Musk recently said that VTS is one step away from widespread acceptance. So there is every reason to believe that within a few years it will replace the classical financial system.
Of course, we can say that it would still be possible to foresee the active introduction of innovation, so in this context we should not start from the concept of the black swan, but from “Amara’s law”, which says that people can overestimate the impact of technology in the short run and devalue it in the long run.
But this is actually a great example of a positive black swan, because even twelve years ago it was only in the early stages of development. And no one could have predicted that in 2021 the price of the VTS would go over $50,000.
VTS – a positive black swan
Speaking of digital gold as a positive black swan, it is worth pointing out a few facts that make it a really in-demand and relevant crypto-asset. First of all, VTC has been able to establish itself as the most productive asset of the last ten years and as a good alternative for classic savings vehicles. Especially if you close your eyes to its short-term volatility. Because year after year the price grows like yeast and sets new historic highs.
And given that the black swan is “something unbelievable and unpredictable”. Bitcoin is associated with these very words among representatives of the economy. After all, 12 years ago, it was some dubious startup, announced in a mass mailing to a hundred cryptocurrencies.
Until 2012, only more than 1,000 people knew about digital gold. But despite such minimal popularization of the virtual currency in its early stages, it soon surpassed itself. Some compare VTC in this context to Google, Microsoft, Amazon, because they too were born in a “garage” and had no huge potential in the early stages of development, but today almost no one can imagine their existence without them.
Today, anyone can start a bitcoin, for example, using the p2p platform LocalBitcoins. It can be used to pay for various goods and services. And a lot of big companies use it as an investment tool. For example, Tesla, MicroStrategy and even domestic firms that allow you to pay for your goods with virtual money.
In retrospect, the birth of VTS can be characterized as a watershed moment. An unpredictable and unexpected event made huge adjustments to the industry and began to dictate its rules. But in fact, it was a long process consisting of a chain of tipping points, which even the most advanced analysts, keeping their hand on the pulse of the world economy, could not foresee. That is why there is every reason to declare that the PTS is a black swan.
The VTS insures the financial industry against negative black swans and risks
Bitcoin, investors say, helps them not fear inflation and insures people against negative black swan events. The dot-com bubble, which occurred 20 years ago, or the global economic crisis of 2008, the consequences of which many nations are still “shoveling out” to this day, can be categorized as such dangers. Experts believe that these events helped accelerate the emergence and development of blockchain technology and cryptocurrency in general.
Since the last century, there has been a crisis in the global financial market almost every decade. An example of a recent time that has affected everyone is the global pandemic of 2020, which has become a negative black swan. The global quarantine is inflaming the situation and bringing the impending crisis closer. On the other hand, people and Central Banks are beginning to look for alternatives to save the economy and are resorting to unprecedented financial measures.
At this stage, no one is taking radical decisions, but there is a softening of the impact of the sharp slowdown in the economy. But it is clear that the stable and systematic growth of the financial market, speculation and high volatility are the first calls pointing to the coming crisis. Especially based on the experience of the last ten years.
Nassim Taleb says it is necessary to protect yourself from unpredictable black swans. And he believes that it is possible to confront hard-to-predict situations through the use of the VTS, which serves as an ideal solution to most problems. Digital gold allows you to abandon the ancient financial system, get independent insurance and become the owner of an indispensable asset that allows you to minimize risks in every investment portfolio. And according to American billionaire Mark Cuban, now is the time to determine what percentage of your investment portfolio or savings should be converted into cryptocurrency. After all, this is how you can hedge against market costs.
And anyone who wants to own digital gold can purchase it on the LocalBitcoins platform. This is a great option for making a quick and secure transaction to exchange fiat money for bitcoin.
CEO and Founder of Crypto Consulting,
Web3 visioner – Kotov Dmitry