Bitcoin Is Like a Phoenix That Grows Stronger After Each of Its Obituaries
Bitcoin will recover even stronger from the crisis the world is going through.
Everything in life goes very fast. You’re at the top one day, and the next day you may be on the ground surrounded only by your few real friends. Those who admired you the day before, which were just artificial fans, are the same ones who will criticize you unscrupulously the next day.
When you are on the ground, that is when you will realize who your real friends are. The ones who really believe in you.
With Bitcoin, I have a feeling it’s exactly the same thing.
On March 12, 2020, Bitcoin price lost more than 50% of its value from $8K to just under $4K. On some trading platforms, Bitcoin even saw its price drop to around $3.7K.
All opponents of Bitcoin, but even worse, the most recent HODLERS, saw this as proof that Bitcoin had failed in its role as a safe haven. On the social networks, a FUD sentiment has spread, pushing a large number of people to sell their Bitcoins at all costs in a totally illogical way.
Some of Bitcoin’s critics took the opportunity to once again announce the upcoming end of Bitcoin.
Without even trying to understand the global economic environment, and the world situation with the spread of the coronavirus, these people have lost a lot of money. Once again unfortunately.
The Bitcoiners, of which I am a member, have been saying all the time that Bitcoin is here to stay, and that it was created for the situation we are in now, but the non-Believers cannot understand this message.
The reason is simple: to be a true Bitcoiner, you have to reveal yourself in a very strong bear market like the one we experienced on March 12, 2020.
The True Bitcoiners Can Only Reveal Themselves in a Strong Bear Market
Now is when the true Bitcoiners will reveal themselves.
Some people think they are ready because they have bought Bitcoins that they have been keeping for more than 3 months. However, being a HODLER is not difficult when the general sentiment in the market is positive, or when the Bitcoin price is around $10K with no big variations.
The difficulty lies in keeping full confidence in Bitcoin when everyone panics, then deciding to sell when its price drops dramatically as it did on March 12, 2020.
So the hardest part is how to rest on Bitcoin’s fundamentals without letting your emotions get in the way of your logical reasoning.
When Bitcoin price reached $3.7K on March 12, 2020, many Bitcoiners appeared on social networks to say that Bitcoin’s situation hadn’t changed.
I was one of them, which led to a number of criticisms from non-believers who thought I was being paid by someone to write about Bitcoin.
Bitcoin Price Has Changed, but Its Fundamentals Have Not Changed
The economic crisis is taking hold, but Bitcoin’s fundamentals remain unchanged.
The reality is quite different.
No one pays me to share my ultra-positive opinion of Bitcoin. I have total confidence in Bitcoin because I consider Bitcoin to be our best alternative to a monetary and financial system that clearly shows its limitations.
Since the de facto introduction of this system by Richard Nixon in August 1971, the wealth gap between the very rich and the poor has never stopped widening.
What we own has never stopped being devalued.
In the current crisis we are going through, the decisions taken by the Federal Reserve and other central banks will only accentuate this trend.
Rather than helping the people who really need it, central bankers and politicians are simply trying to save the fiat system by giving more and more money to the banks that are among those primarily responsible for the situation we find ourselves in.
The coronavirus has been the catalyst for the difficult times we are going through, but the current ills in the system that are being exposed have been smouldering for many years now.
In this difficult context, more and more people are beginning to lose faith in the system. Every person who is disappointed in the current monetary and financial system is a potential future user of Bitcoin.
The years to come can only see the demand for Bitcoin increase. This is my inner conviction.
Today is March 20, 2020. For a little over 36 hours, Bitcoin has been back in the green again, as has the entire cryptocurrency market for that matter.
It’s quite simple, over the last two days, the Bitcoin price has increased by almost 35%:
This sharp increase in Bitcoin price comes at a time when Wall Street is struggling to respond positively to the Federal Reserve’s monetary stimulus.
As an example, the Dow Jones is finishing the week fairly neutral at around 20,500 points. Gold is up slightly today, but is still down around 2% since the beginning of the week.
Bitcoin’s current strong reaction does not in any way indicate that we have emerged from the liquidity crisis.
Nevertheless, it is proof once again, if proof were needed, that Bitcoin is not going to die simply because its price loses 50% in a few hours as it did on March 12, 2020.
The high volatility of the Bitcoin price is precisely a choice assumed by its creator. Because Bitcoin belongs to everyone, its network works all the time. It is up to its users to find its equilibrium price during the exchanges that take place.
Since its creation, Bitcoin has been announced as dead 380 times. Each time, Bitcoin has risen even stronger.
The situation that Bitcoin experienced on March 12, 2020 is no different. Many people doubted it again, but Bitcoin will recover stronger.
Bitcoiners who saw the drop in price as an exceptional opportunity to accumulate more Bitcoin will obviously be the first to benefit.
For your part, it’s not too late yet. Nevertheless, you should try to understand how Bitcoin works, and above all that the total paradigm shift it offers is your best chance to opt-out of the current system.
Once you understand this, you will join the ranks of those who totally believe in Bitcoin. Then you will understand that Bitcoin is like a phoenix that always rises from its ashes, and always comes back stronger.
This time again, Bitcoin will continue to prove it.