In a new episode of In the Know, Wood says the Bitcoin and Ethereum networks are functioning as expected and are not in any way affected by the high-profile collapse of Silvergate Bank and Silicon Valley Bank.
“The Bitcoin blockchain and Ethereum, those two blockchains have not skipped a beat. There have been no transactions interrupted. The smart contracts, which are rules-based, when there’s a margin call – a stock goes down or something drops in value – there’s an automatic margin call. It just happens automatically in this over-collateralized system…
What has happened with the Bitcoin and Ethereum blockchains is they serve as proof of concept. They have not stopped. Transactions that were supposed to take place are taking place seamlessly and the health of the network is still very strong.”
Wood also says that what happened in the legacy markets last week, where people witnessed the meltdown of two publicly traded banks, bodes well for the future of crypto.
“Short-term signals, on-chain signals might have turned a bit negative because crypto is not immune from liquidity pressures generally in the traditional world, but this idea of decentralized and transparent, which we believe is going to support digital wallets, has just gotten more of a proof of concept, more centralized entities are going under.”
At time of writing, Bitcoin is trading for $22,391 while Ethereum is worth $1,600. Both crypto assets are up over 9% in the last 24 hours.
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