Bitcoin drop has been too painful. Monetary policies are tightening. Prices are plunging. Users despite the deep decline in prices have been talking about the 1 BTC = 1 BTC. The 1 BTC = 1 BTC is the statement meant to improve the spirit of Bitcoin holders, thus helping them to hold their spirits high – to keep their hopes high.
Economic shocks from across the world have strained BTC price. Despite tough times, BTC has been one of the best performing assets over the past 10 years. In a bear market, people are not confident about the value going up and in the bull market the tiniest news pushes the price rocketing up.
BTC has been propagated by influencers to work as a hedge against inflation and equities; however, in the current economic scenario, it has not become a reality. Bitcoin has been subject to fluctuations in response to economic news and continues to reign as a risk-sensitive asset.
The cryptocurrency industry was nothing a decade ago. The OGs who invested in the cryptocurrency space way before are continuing to be believers. They have survived worse storms. Most of the OGS continue to believe and they are the guys who contributed to making Bitcoin so successful.
Micheal Saylor expressed, “Over the past year currencies have collapsed against the dollar: CAD -8%, CNY -9%, AUD -11%, ZAR -17%, KRW -18%, EUR -18%, PLN -21%, GBP -22%, JPY -23%, TRY -52% Over the past four years the dollar has collapsed -67% against Bitcoin.”
Discussing the price of BTC going down, the widespread opinion is that short-term holders are sending the price of BTC going down. Some analysts opine that Bitcoin follows the fate of gold.
The narratives and the sentiments around Bitcoin have been changing over years. The reality is that in the previous bear market, everyone was expecting a new bull run; however, in the current scenario many of them have stopping hoping for a bull run. This is indeed a dramatic change. Previously, no matter what the price trends are, the majority market expected the price to bounce back.
Those who have been long in the market know the difference between bear, bull, and bubble. Further there is a confusion about derivatives. The fact is that derivatives are not Bitcoin.
“If you can’t take possession of Bitcoin into your wallet, you don’t own Bitcoin. Only 21 million Bitcoin can reside in wallets, therefore there are only 21 million Bitcoin, no matter what.”
Believers state that a Fool and his Bitcoin are easily parted, meaning to say that persistence is important in a bear market or a crypto-winter situation.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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