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Bitcoin has triggered mixed feelings amongst its investors. And, bitcoin has done it all to all; however, the different feelings to different people happened depending upon who were invested when and which part of the dip. There have been many things – early investors, buying the early dip, buying the best dip, buying the worse dip – and to some the dips were never real dips, they were the dips during the trending times of the ATH.
As Shibetoshi Nakamoto recently pointed to a few things implying investor attitudes: ““I have lost money – so much! – but I’m gonna make more bets to break even” – you may be Degen.
“I have lost money and that sucks but I am not worried” – you are ok
“I have lost money and am losing sleep and taking it out on other people” you may be over invested.
And, the prophesies of Dollar Cost Averaging continue. Bitcoin influencers point to inflation, store of value, fungibility, and a range of stuff. And, there are enough counter theories doing the rounds.
It is never good to listen to one side of the story before you invest your money. It helps to know both the sides of the story.
Lark Davis shared: Inflation is expected to have hit 7.1% in December, will be confirmed on Wednesday. Yeah, I guess the runaway inflation means it is time to sell off your inflation hedge. LOL Bitcoin.
Mixed and Random Community Response to Lark Davis opinion:
As an investment, would you choose fiat currency? Right now? Absolutely! As long as FIAT, crypto and the stock market were the only choices for investments. Many will not agree with me, but the $600,000,000 – we’ve seen will leave the crypto realm since our ATH does, and one thing numbers don’t do… is a lie.
The FED already announced that they will take aggressive measures to take inflation down and that’s why BTC price is trending downwards. Don’t try to fool people into buying right now, when it’s obvious that the macro environment is not favourable. Be honest with your followers.
If you think about it – this shouldn’t matter. We invest to make our financial freedom come true. And, no matter if the dollar increases or decreases, you are still better off with returns off staking/lending crypto than what the bank gives you for “staking”.
If you lend stable coins and gain interest by doing it, it doesn’t matter. But if you plan on staking crypto that can lose half its value in the near future, then the macro trends matter a lot. It’s important to determine, which investments are in favour and rotate accordingly.
No matter what though, still better than holding your money in a bank. That’s the underline.
FIAT hasn’t lost as much value as Bitcoin has in a day (-2.1%), in a week (-13.7%), in a month (-15.63%), or even in 3 months (-26.05%). However, Bitcoin does take the victory over FIAT in the past year (+15.06%). I have got a feeling they’re about 2 give a bunch of that back though.
That’s just CPI, and a particularly bullshit CPI at that. 1980’s-style CPI has it closer to 16%. Wait until the monetary (real) inflation numbers for 2021 come out. I haven’t seen any yet but I’m guessing 22-24%.
When is that scheduled for? Whenever someone tallies just how much new money The Fed has printed in 2021 & divides it by the previous supply * 100. The math isn’t hard, but getting accurate numbers for the variables can be.
This is precisely what I don’t understand about the correlation between Bitcoin and the broader markets. There is no stronger argument to buy Bitcoin than what is happening with US dollars right now.
The crypto community still doesn’t understand that Bitcoin is not a hedge against inflation but just a store of value that is very volatile.
How can it be a store of value, if the value is very volatile? Makes 0 sense.
I can’t predict what will happen a day later, and I’d like to know how you can predict what will happen in a few months. An inflation hedge is just a false narrative bitcoin is a risk-on speculative asset and the volatility reflects that.
Inflation is affecting fiat all over the world, some worse than others. But Bitcoin remains the best way to protect one’s wealth from being constantly depleted due to inflation. Fiat doesn’t appreciate but Bitcoin does. The choice of where to put your wealth is yours.
This is what I did not understand. People were saying if inflation hits hard, then people will sell off their crypto first. But why would you do that? It is like selling off your gold, to counter inflation.
