We have heard a thousand times that bitcoin is dead.
Still, here we are with bitcoin doing really well. Almost back at its all time high.
so, the other word comes out:
"Bitcoin is in a bubble!"
"It is ready to burst at any moment."
"You are going to lose everything!
"Bitcoin isn't backed by anything"
Is there any truth to these statements?
Bitcoin is in a bubble?
Bitcoin started off trying to be digital money.
What is it today?
Well, today, bitcoin seems to be the worlds greatest collateral. The thing that epitomizes a secure asset.
With bitcoin you know exactly who has what and where. And as such, bitcoin will suck up so much wealth from all the monetary markets.
It is not that the ETFs were approved, it is that people have decided to make it a tradeable entity inside the old system. This means as the price goes higher, the price will go higher. Fomo'ing harder than ever before.
We are barely at the beginning of the typical halving related bitcoin bull run, and we are already shooting for all time highs.
Govern-cements are getting into bitcoin.
And we barely started crypto adoption.
Bitcoin is not in a bubble - you might say it hasn't even started inflating yet.
You are going to lose everything
I hear this one so often in conversations with normal people.
The normal person still thinks this new fangled digital crypto currency is one of those things that is going to come and go like AOL. Most only see the price. They do not comprehend bitcoin's potential. They do not even conceive of how much change is coming to the financial system because of block-chain.
The normie sees a stock price plummeting and they assume that the corporation is going out of business. Stocks drop in price all the time, but the times the TV guy covers it is when it cratering, and going into bankruptcy. So, the normal person sees bitcoin drop from $69k to below $20k, and thinks, "it's dead"
All of us in the crypto space have seen these ups and downs repeat over and over. In fact, i for one, do not feel comfortable if the price stays stable too long. But here we are. At the bottom of another up cycle. (we think)
Well, there is only two ways from here
- Bitcoin adoption with a completely new monetary system for the world
- We live in mud huts and dream of creating electricity again.
Either way, bitcoin is a great investment. You really win, or money doesn't really matter anymore.
Bitcoin isn't backed by anything.
This is such an unusual accusation.
You have to be over 50 to have been alive when the dollar lost its last tenuous grasp with gold. So, why do people insist that a currency should be backed by something? Its like someone insisting that photographs shouldn't have color. Just weird from out current position.
We haven't had a fully backed currency in our lifetimes. We don't even know if there is gold in Fort Knox. And through all the previous "backed" currencies, it was found that the banksters cheated. Every single time. That backing only seemed to slow down the process of cheating, if anything.
Bitcoin is more powerfully backed then anything previously, if looked at in a slightly different light.
Bitcoin is backed by a bunch of computers all making sure that the block chain stays uncorrupted. No previous currency has had a built in authentication system.
Bitcoin is backed by math. It is not someone trusting someone, trusting someone (to not screw over the entire banking system) Instead, all the trusting has been removed from the system. Bitcoin has an in-built auditing system.
Today, we think of a shiny yellow metal as the "gold standard" for finance.
Tomorrow, we will think of bitcoin as the "bitcoin standard" for finance.
Gold just cannot compete with mathematically proven scarcity, and the largest computer network proving ownership.
So, what backs gold? (people in the future will ask earnestly.)
Now, we get to watch bitcoin grow, and the financial system of the world transform around it.