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Spend Your Bitcoin, A Crypto Market Theory by: Michaelson Williams

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Written by   303
2 months ago (Last updated: 1 month ago)

This morning when I looked at my crypto portfolio the markets were down, Again. Many of the crypto influencer's were saying the day before and the day before that, that surely we are at the bottom, and the market mainly Bitcoin is ready to bounce back. I started thinking does anyone really know what they are talking about when it comes to the crypto marketplace? My first conclusion was that the "experts" and novice are playing the guessing game, and have no clue what's really happening or why Bitcoin cannot seem to ramp up. My second thought was that people are simply delusional about crypto all together, including myself, and this is some kind of mass social experiment. Lastly my mind went to something called The Greater Fool Theory.

What is the Greater Fool Theory you ask? While I'll tell you... The Greater Fool Theory is the idea that there is some fool that invested in a propped up asset, in the hopes of selling said asset shares to a greater fool down the road. This principle suggest that market value of a particular asset is sold at an inflated price, and due to herd mentality the next fool will buy at an even higher inflated rate. I started thinking is this indeed what's happening with Bitcoin and other crypto assets? Could we all be simply hoping that we aren't the Biggest Fool in The Greater Fool Theory lineup? I don't know about you but I don't ever want to think of myself as a dummy or fool, especially when it comes to my finances. I had to dig deeper into my own mindset to see if I was likely investing as a participant in a giant crypto Ponzi Scheme. I had to understand my personal needs in the crypto investment space. It was there that I came up with this question. Should I and everyone else be spending our Bitcoin instead of holding?

In a flash it hit me. Bitcoin and the other crypto assets need an outlet, a place to go, an interaction of usage outside of buying, selling, trading and holding. Because Bitcoin and the other crypto assets are literally energy they have an intrinsic need to flow in a cyclical manner. Think about this idea like having a bucket full of apples for which you can never eat. What happens to the apples in the bucket after a period of time? They Rot. The bucket containing the apples do not allow the apples energy to be used by anything, not by the Earth if it falls to the ground, nor by the body if eaten. The apples must be eaten or reabsorbed into the soil for there to be an energy transfer. In the case of crypto markets where everyone is buying and holding there is no completion or cyclical movement of crypto energy. Objects in a system, any system, must move in a certain manner to be healthy and useful to other like or nearby systems. The flow of crypto right now is basically in one direction. Buying and Holding.

I'm not saying that anyone should be trying to spend all of their crypto, and this isn't by any means financial advice. My idea is simply a personal theory, that could potentially explain why the crypto markets are performing the way they are currently. The theory herein has only been put forward as a solution to ultimately boost Bitcoin and other crypto assets, so they can potentially have greater tangible market value. In other words, we need to get the crypto energy moving in a more natural way. Holding on to money tightly while in a state of fear is basically a foundation for scarcity, and spending is abundance. I believe Satoshi Nakamoto, the creator of the Bitcoin White Paper would have wanted Bitcoin and crypto in general to be a tool for abundance in the world, not one of scarcity. I know if I were Satoshi I would have built this new money class as a means for the world to realize greater wealth and abundance over all.

Let's all think about it this way. If everyone is spending a portion of their Bitcoin on daily wants and needs then the value and use potential increases, not decreases. More people would adopt Bitcoin and other crypto's as monetary fuel for everyday use, instead of something that should be buried away like a dog with its bone. If everyone is hoarding their crypto instead of using it as money, which is its original intention, then how can people accept the fact that crypto is to be used as the ultimate transaction tool. I don't exactly know what the complete psychology is around crypto, but it doesn't seem to be that it's money energy. The psychology around crypto seems to be leaning more towards it being something not to be used, buried in a private wallet to be forever held off-chain. We are human and sometimes we take things to far. Maybe the idea of HODLing has been elevated to a ridiculous precedent.

Money, no matter how new, old, or in what form it comes must be moved in a everyday marketplace for tangible goods and services, so people can understand it enough to trust it. Mass adoption of Bitcoin and crypto in general has already been an uphill battle from the beginning. If only a few people understand the movement of Bitcoin and other crypto's, while at the same time these assets continue to flow in one direction (off-chain), mass adoption is going to be extremely difficult at best. Money is about psychology if nothing else and today the general public still can't get their head around crypto usage. The crypto market is crazy right now and looks like it's going to get even crazier, which makes people feel like they need to hold on even tighter to whatever crypto investments they have. I believe this to be counter productive to the overall purpose of crypto being money.

We should be cautious not to forget what utility Bitcoin and the other digital money's are suppose to bring to our everyday life. After all let's be realistic here, crypto is a game in which we move around bits of data that represent a value of trade. You cannot touch cryptocurrency, and what you actually see is only a representation of something in the Cryptosphere based on a psychological principle. It's Money. The wises thing in my mind to do with our crypto holdings, whether you're a Whale or a Minnow is to take a percentage of that new money and spend it on something you love, or better yet donate it. Imagine if everyone who holds Bitcoin would donate 25% to 5 people for whom they do not currently know. The percentage of crypto you spend or donate would be relative to how much crypto you are currently holding, and would not exceed 25% of your total holdings. What ever you buy or donate should be transacted in Bitcoin or other digital money only, not transferred to fiat money of any country. If everyone acted in this manner how could crypto not become the dominant form of payment or charity around the world.

Of course there are a few issues which could arise from spending or donating a portion of your Bitcoin or other digital assets. The Whales. Whales in the market are a pain in the soft seat of the human body...lol Whales want, want, want and almost never like to be team players. So for the Whales reading this article it's simple. If everyone is spending a small portion of their Bitcoin or other crypto holdings Bitcoin goes to the moon, and everybody wins. On the other hand, If everyone continues to hold as if crypto is the last morsel of bread on the table then Bitcoin and crypto in general remains in a holding pattern, and people will not have faith in crypto as new money. Everyone loses and does so in a big way. Is my idea nothing more than Pie In The Sky or does humanity still possess a sense of family togetherness, that can be positively cultivated through crypto? I'm not sure... What do you think?

Article by: Michaelson Williams

Resources:

https://en.wikipedia.org/wiki/Greater_fool_theory

https://goalphoenix.com/course/building-your-crypto-portfolio/

https://bitcoin.org/bitcoin.pdf Satoshi White Paper

https://nft4me.io/nft-artist-directory/

https://mmap.substack.com/podcast

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