TL;DR
- Bitcoin’s Resilience: NSA whistleblower Edward Snowden reaffirmed his support for Bitcoin (BTC) after a technical glitch on the New York Stock Exchange (NYSE) caused Berkshire Hathaway shares to plummet by 99%.
- Decentralization vs. Traditional Systems: Bitcoin operates as a decentralized currency, contrasting sharply with traditional stock exchanges. The recent NYSE malfunction highlights the systemic risks inherent in centralized platforms.
- Bitcoin’s Track Record: Remarkably reliable, Bitcoin has maintained an uptime of 99.989% since its inception. Despite early incidents, such as the 2010 “value overflow” bug and a 2013 blockchain fork, Bitcoin’s developers swiftly addressed these issues, reinforcing its reliability.
On Monday, NSA whistleblower Edward Snowden reaffirmed his support for Bitcoin (BTC) amidst a significant market disruption. The NYSE experienced a technical glitch that caused Berkshire Hathaway shares to nosedive by 99%, sparking renewed debate over the stability of traditional financial systems compared to decentralized alternatives.
Bitcoin Fixes This
The NYSE encountered a technical issue that led to erratic price movements in several stocks, prompting a halt in trading. The NYSE resumed operations two hours later, reporting that all systems were back online.
Berkshire Hathaway and Barrick Gold saw their shares erroneously plummet by about 99% among the impacted stocks. Berkshire Hathaway’s shares, usually trading above $622,000, fell sharply to $185 before the error was rectified.
The NYSE ascribed the chaos to “technical difficulties” with the limit-up/limit-down protocols, which are safeguards against extreme price volatility during trading. These protocols were implemented following the 2010 flash crash, where algorithmic trading caused a rapid loss of a trillion dollars in market value.
The NYSE’s parent company, Intercontinental Exchange, found no evidence of cyber intrusion. In light of these events, Edward Snowden commented on X, stating succinctly, “Bitcoin fixes this.” His brief remark emphasizes his conviction in the superiority of decentralized financial systems over centralized exchanges.
bitcoin fixes this https://t.co/1iS96wdbMT
— Edward Snowden (@Snowden) June 3, 2024
Bitcoin operates as a decentralized currency on a peer-to-peer network, devoid of central oversight. This structure starkly contrasts with traditional stock exchanges, which are susceptible to systemic risks, exemplified by the recent NYSE malfunction.
Bitcoin’s design prioritizes transparency, immutability, and security, aiming to minimize the likelihood of catastrophic failures due to technical mishaps or centralized mismanagement. Snowden’s backing of Bitcoin in this scenario underscores the cryptocurrency’s robustness against the frailties that can afflict conventional financial systems.
By asserting that “Bitcoin fixes this,” Snowden suggests that Bitcoin’s decentralized nature could avert similar market disruptions, offering a steadfast alternative to customary trading platforms.
Bitcoin’s Track Record
Remarkably, Bitcoin has maintained an uptime of 99.989% since its inception, reflecting the resilience of its blockchain technology.
Bitcoin has only encountered two notable issues: the 2010 “value overflow incident,” where a glitch generated billions of BTC, and a 2013 blockchain fork due to incompatible software updates. Both were quickly resolved by Bitcoin’s developers, bolstering the cryptocurrency’s reliability. Currently, BTC is valued at $68,951.
Snowden’s endorsement of Bitcoin amid the NYSE’s technical troubles highlights the potential of decentralized finance to provide a more secure and stable financial landscape.
