As more and more negative headlines hit the news this week on Bitcoin, it is getting clearer that Bitcoin will be a hedge for the future markets.

"Bitcoin's correlation with equity prices has strengthened recently, but we think that this will be just temporary. We still think that bitcoin is essentially worthless, meaning that it is likely to fare much worse than other assets in the coming months," Capital Economics said.
Source: CNBC

While knowing that Bitcoin investors and HODLers are skeptical of negative news toward Bitcoin, we should still remain vigilant and well informed of the market. News are usually made to strongly agree or disagree with the mainstream audience, so as to create a sensation, as media agencies do for a living.

However what they fail to observe is how Bitcoin was poised at US$20000, after much market speculation? Shocked at the prices? And now glad that it is dropping.

I see Bitcoin as a hedge fund, meaning Bitcoin will remain generally unaffected by stock market trends and eventually become an important asset when there is a financial crisis, etc. We have investors in Bitcoin coming from wealthy and diverse backgrounds and because of the blockchain nature of Bitcoin, transaction fees and taxes were never an issue for early investors. These investors keep Bitcoin as their hedge funds, and as long as they keep holding to their hedge, Bitcoin prices cannot go lower than the baseline.

Although fingers crossed at the moment, small investors like us can only hold on to Bitcoin right now. Especially if you have bought Bitcoin above US$10000, my suggestion is to hold it. Bitcoin price alone cannot determine the value of Bitcoin itself. I am now exploring other finance parameters such as inflation, market value and market supply to better understand Bitcoin's future.

-tysler

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