Bitcoin is YOUR Project
Bear markets are tough. Bitcoin has grown exponentially in value over the last decade but has declined around 80% from its peak value this year alone. Pointing to external factors to identify why the price is dropping is the natural reaction, but this project relies 100% on you in order to increase in value. Bitcoin is quite possibly the most decentralized yet economically coordinated human endeavor ever seen. It’s cleverly designed so that the most profitable thing you can do is to HODL it long-term and help it grow.
There are some very clear steps you can take to increase the overall value of Bitcoin. Bitcoin is the very first resource with an utterly inelastic supply due to its issuance schedule and proof of work mining, so the only variable that can be manipulated to increase the value of the network is demand, and demand is surprisingly easy to increase with just a small amount of effort.
The easiest way for you to directly increase demand is to convert other currencies into Bitcoin, or to provide a good or service for payment in Bitcoin. This increases demand because it is an economic signal that lets the world know that you value Bitcoin more than other currencies (money talks). Be careful not to convert too much of your wealth into Bitcoin. It’s extremely volatile, although its growth cycles are becoming more and more predictable over the long-term. Bitcoin is volatile because it appears to have solved the problem of inflation by having a fixed supply and extremely strong incentives for the market to maintain this monetary policy. Since supply cannot be manipulated to adjust to new demand unlike every other resource, we see major spikes in value and then gut-wrenching crashes, which have always historically landed above the previous spikes because of the influx of new users.
Probably the best way for you to increase demand for Bitcoin is by introducing it to new users. It’s likely that less than 1% of the world’s population owns any amount of BTC at the moment, so this is the clearest way to increase demand over the long-term. This is a bit trickier because it involves, at the very least, explaining why Bitcoin matters and then walking someone through setting up a wallet. Be sure to give the new user a few thousand satoshis to get them started. The worst case scenario is that they lose their wallet and the few thousand satoshis, decreasing the available supply of BTC (moving the vertical supply bar left and making the remaining BTC supply more valuable), and the best and most likely case is that they end up demanding more BTC.
Either way, you have now made Bitcoin into another person’s responsibility, and they are not likely to ever forget about it.
