The narrative of Bitcoin is challenging banks.
In reality, this is not the case, as many banks are beginning to learn to live with bitcoin.
Yet at this precise moment in history, the two parables of banks and bitcoin diverge, so much so that they seem opposite. This seems more like a random event than something to suggest that Bitcoin is actually waging a war against banks.
The main problem, for the banks, is that the current moment of economic difficulties is inevitably transferred to a financial system that has already experienced crisis. The banking sector in particular has been suffering for many years, and certainly not because of bitcoin.
For example, in Italy there are those who claim that, due to the adverse consequences of the Covid-19 emergency, there is a serious risk of a credit crisis.
Since the beginning of the pandemic, the value of Italian bank bonds has already lost an average of 30%, which adds to the heavy losses in the sector in recent years. If non-performing loans were to increase significantly as a result of the crisis, bank profitability could contract further, causing the value of bank bonds to lose more ground.
As an example, a credit crunch occurred during the 2008 subprime crisis. In fact, the state has issued public guarantees to partially cover impaired loans, which could limit damage.
But this cannot last indefinitely, and if the situation degenerates, the risk of credit crunch in the coming months or years becomes significant.
In the last 30 days, the FTSE Italia All Share Banks Index has lost almost 8%, while bitcoin has grown almost 23%.
This divergence, however, is random and fluid.
Banks Fight As Bitcoin Sets New Records
Bitcoin is not only setting new annual price records lately, but also new ones all-time records for the number of addresses that own BTC.
As pointed out On twitter the CTO of Glassnode, Rafael Schultze-Kraft, Yesterday there were three all-time highs for the number of bitcoin addresses with BTC worth at least $ 10, $ 100, and $ 1,000. Further, now there are more than 20,000 addresses with BTC worth $ 1 million or more.
In other words, at the moment bitcoin doesn't seem to be at a disadvantage from the Covid-19 emergency, while banks are, especially in countries like Italy where their profitability has been in trouble for a long time.