The comment comes in the wake of recent catastrophic events that have led to an implosion of the ecosystem supporting cryptocurrencies. On the other hand, this "crypto winter," as it is commonly known, has been gradually getting worse amidst both institutional failure in the ecosystem and changes in the general conditions of the global financial system.
Musk's response was in response to a comment which recalled BTC's previous high of $69,000 and asked where the price of bitcoin might be in one year's time. Indeed, confidence in the industry as a whole along with the price of Bitcoin (BTC) has taken a significant nosedive.
As a result of the failure of Terra's so-called stablecoin, widespread uncertainty plagued the business sector after it sent shockwaves through the global financial system. Instantaneously, institutions and people all over the world were forced to acknowledge the possibility that algorithmic stablecoins could fail. Companies that had a high level of exposure to risk quickly went bankrupt along with the Terra infrastructure.
As a result, Voyager Digital, BlockFi, Celsius, and Babel Finance, along with other companies, experienced a decline. The value of bitcoin and other cryptocurrencies fell precipitously alongside the rapid decline in the value of publicly traded companies. When winter finally arrived, the market was confronted with a new challenge, and people started making predictions about when it would reach its lowest point.
An abrupt and nearly immediate closure brought an abrupt end to FTX, which was one of the most prominent cryptocurrency exchanges in the world. After declaring bankruptcy and then being the target of a cyberattack that resulted in the theft of more than $515 million worth of customer assets, the company, which had previously portrayed itself as a savior to the ecosystem by insisting that it would acquire other failing businesses in order to protect customers, was unable to protect its own customers from harm.
Even so, despite the deteriorating trust in the ecosystem's various institutions and custodial service providers, Bitcoin will succeed, as Elon Musk predicted. Consumers could, quite simply, learn to trust themselves more than they trust those whose decisions and actions have the potential to harm not only consumers but also the entire ecosystem.
