TL;DR

• Shares in the San Francisco-based First Republic Bank plummeted yesterday morning after it delivered a rough quarterly report.

• Over $100B was withdrawn from accounts in March alone, raising concerns of a 'Silicon Valley Bank 2.0' type situation. As a result, Bitcoin jumped in price.

• Bitcoin is perfectly designed to protect against cataclysmic failings in our modern monetary system. Think: hyper inflation and banking collapses.

• Which make BTC similar to the baseball bat you keep under your bed. You're glad it's there - but you really don't want to have to use it.

Full Story

Remember the whole '2012 = the Mayan calendar ending = the world ending' debacle?

A bunch of folks feared that, because the Mayan calendar stopped tracking events in 2012, the world was going to end.

It was weird.

You got the feeling that people who'd bought into the theory, were somehow eager to be proven right...which would mean seeing the world end.

There's a parallel here with Bitcoin.

Much of what it's perfectly designed to protect against are cataclysmic failings in our modern monetary system.

Think: hyper inflation and banking collapses.

The idea being that: as currencies hyper inflate to the point of being worthless, and banks start to fail en masse - folks will buy Bitcoin to protect their wealth.

(Pushing the price way up).

Starting to see the parallel with the Mayan calendar? Being proven right = a bad thing having to happen.

Now, it's not a perfect analogy - because Bitcoin can absolutely grow in value without 'the bad thing' happening.

That said, we are starting to see patterns of Bitcoin being seen as a safe haven from failings in the traditional financial system.

And unfortunately, today we have another example of that.

Shares in the San Francisco-based First Republic Bank plummeted yesterday morning after it delivered a rough quarterly report.

Basically, over $100B was withdrawn from accounts in March alone, raising concerns of a 'Silicon Valley Bank 2.0' type situation.

As a result, Bitcoin jumped.

So what's the takeaway?

Right now, Bitcoin is like that baseball bat you keep under your bed. You're glad it's there - but you really don't want to have to use it.