Bitcoin's Unstoppable Momentum: Embracing Change in a Volatile World
Exploring Bitcoin's Q1 2023 Success, Its Role as a Safe Haven Asset, and the Challenges Ahead
Bitcoin had a strong performance in Q1 2023 +70% from YTD - Outperforming every other asset class. Are you still ignoring Bitcoin? You are doing yourself a huge disfavor.
One thing is certain: Bitcoin will make everyone appear as either clowns or geniuses. Be it bulls or bears.
The volatility will be more like a feature in the future for everything. “Bitcoin is so volatile", look at other assets. Trillion-cap stocks trading like shitcoins, this is crazy stuff.
Why has Bitcoin rallied?
“Crypto” industry had a massive fallout in late 2022 with the collapse of FTX, Terra Luna, etc.
Chaos in the banking industry.
Ongoing “de-dollarization” and currency war scare.
The rapid pace of the digital era has made trust increasingly fragile; place our faith in the mathematical systems or talking heads? Who knows what happens next? Bitcoin is the safest bank with no counterparty risk.
Trust can rapidly disappear. What’s next? Governments? Even traditionally safe investments aren’t so safe if trust rapidly erodes. No, I don’t want or wish that trust rapidly erodes.
Bitcoin's Role as a Safe Haven Asset
We are witnessing the birth of the modern-era store of value. A better alternative to seeking refuge when trust starts to erode from traditional institutions? There is no second best. Bitcoin is an unbiased player in a world of economic conflict and instability.
Like Switzerland's historic role as a neutral and secure financial center, Bitcoin's potential to serve as a digital Switzerland attracts those who value financial independence and privacy.
The decentralized system guarantees that no single entity has too much power, Bitcoin is incredibly secure and stable. Or how else am I going to secure my financial future? Stuff gold bars in my ass?
Erosion of trust will continue.
Geopolitical tensions continue.
Victory for the people - Bitcoin.
Bitcoin's Promising Outlook for the near future
https://unchained.com/how-to-position-bitcoin-boom
Read the report. Well, read at least this:
Bitcoin halving in less than a year (2024).
First Halving (November 28, 2012):
Price on the day of halving: ~$12
Price 1 year after halving: ~$1,000
Second Halving (July 9, 2016):
Price on the day of halving: ~$650
Price 1 year after halving: ~$2,500
Third Halving (May 11, 2020):
Price on the day of halving: ~$8,600
Price 1 year after halving: ~$56,000
Traditional currencies continue to face challenges from inflation and economic instability.
Bitcoin amplifies its appeal as a digital store of value: principles of supply and demand in play - Dance of fear and greed.
Bitcoiners
The true driving force behind Bitcoin, Bitcoiners.
Bitcoiners are hopeful about the future. How is it wrong to advocate better ways of living? Decentralization, hard money, security, financial inclusion, innovation.
Weak men create weak governments. I am sorry for you. The majority wants more control so they don’t have to think for themselves. I am so grateful and happy that Bitcoin exists and that the most brilliant people are on it. It can’t be stopped.
So bullish on Bitcoiners. Love & Freedom.
Victory for the people - Bitcoin.
Challenges and Risks for Bitcoin
Bitcoin's volatility due to $500bn market cap compared to gold's $10tn: Still early, tiny asset; consider a 1-5% allocation.
Necessity for improved scalability and privacy solutions: Essential for long-term success and mainstream adoption.
Potential government seizures in extreme political scenarios: A risk to consider and navigate.
Climate and energy policy concerns: Addressing sustainability and environmental impact.
Need for increased energy production and abundance.
Long learning curve for widespread adoption and understanding: Importance of education and outreach.
Bitcoin's role in fixing incentive structures, not solving all world problems: Recognizing its limitations and focusing on its strengths.
Despite these challenges, Bitcoin’s outlook remains strong.
Conclusion
Bitcoin experienced an outstanding Q1 2023, solidifying its position as the best-performing asset in the world.
Amidst growing global economic uncertainty, Bitcoin holds immense potential to maintain its growth trajectory as a safe haven asset and "neutral country" in the digital realm.
Investors and enthusiasts must understand the risks and challenges facing Bitcoin, it will take time.
As we look to the future, we must recognize that Bitcoin's rise to dominance will be a gradual and steady process (hopefully). It may take a decade or more for Bitcoin to surpass gold in market capitalization, but this evolution allows ample time for people to get more educated. Fostering a deeper understanding of Bitcoin's potential and role in the global financial ecosystem.
No, I don’t want banks to fail - No, I don’t want our governments to fall. No, I don’t want that the trust rapidly erodes.
As we continue to educate ourselves and others on Bitcoin’s benefits and challenges, we can work together to foster a future where financial freedom and love prevail.
Stay humble and stack sats.