The US is ablaze with rioting, sparked by the death of George Floyd: could Bitcoin become a means to overthrow an oppressive monetary system that marginalises people of colour?
The shocking murder of George Floyd during an act of police brutality sparked a weekend of riots across the US. Incidents of looting and vandalism have followed suit by some.
For an economy already struggling with the effects of coronavirus, the looting could spell disaster for many small business owners across the country.
Bitcoin is in a state of flux at the moment. The post halving Bitcoin market has left the majority of investors guessing over the past three weeks. In the time since the halving, it has struggled to break through its upper resistance level of $10,000, dropping down to the $8,000s, before promptly returning to the mid-$9,000s.
Stock futures opened up significantly lower yesterday, as to be expected with the reports of widespread rioting and curfews across US cities. However, until the dust finally settles, it will be impossible to tell how much of an effect the riots have had on the stock market.
Bitcoin, on the other hand, should remain unaffected as there is no physical infrastructure to be targeted or destroyed. It is also well documented that Bitcoin is a great store of value that is secluded from traditional financial instruments, so it could attract a number of wary retail investors if the rioting continues or intensifies.
The riots are expressions of deeper societal grievances, triggered the tragic murder of George Floyd. Some have argued that the looting that has been seen is in part a protest against a systemically racist financial system, as well a protest on the bailouts worth billions of dollars given to corporations by the US Government.
Decentralised cryptocurrencies are a tool for change against such a system. Indeed, Bitcoin was created in direct opposition to the global monetary system following the 2008 global financial crisis.
It is important to remember that cryptocurrencies are much more than just an investment instrument able to generate impressive returns. They were created out of an ideology that placed itself in opposition to the status quo. As such, it is only fitting that they should help continue to further this ideology of giving people freedom from a monetary system that many across the world have lost faith in.