There has been a lot of uncertainty in the bitcoin and cryptocurrency markets this week. Most of it stemming from potential regulations starting in America that could have a large impact on the future of cryptocurrency. While the USA isn't the only country out there, it would be irresponsible not to admit the financial importance the country holds. With the dollar currently being the world reserve currency, a high percentage of the world financial action taking place here, and then the whole military aspect that comes along with it. Like it or not, if they decide to take action on something, more likely than not other countries will follow suit. Even with this heavy FUD, bitcoin had risen significantly throughout the week, something that surprised many of us. As the American bill looked as if it would actually pass, that is when the prices of the market began to fall. But it is important to note that prices only dropped about 5%, and have since began to recover.
This is incredibly bullish for bitcoin. Bitcoin has been handling this FUD battle incredibly well, and this should give you great confidence for the future of this blockchain. Just look back to a few months ago when bitcoin was at it's all-time high and then Elon Musk made tweets about bitcoin. And then the price tanked. While it is debatable if that was the sole cause of the price drop, or maybe just the first domino. Regardless, something that shouldn't have even been a big deal contributed to bitcoin dropping by over 50%. This led people to believing that the bull-run was officially finished.
But now fast-forward to today. As I just mentioned; the US government was trying to sneak in cryptocurrency regulations that could have a real negative impact on the future of cryptocurrency, and especially on the freedom aspect of it that we all cherish. Something like that should definitely have an even larger impact than just Elon Musk sending out a few tweets right? But it didn't. In fact, bitcoin only dropped by 5%. While it still could drop further, for now it appears the price has stabilized and is recovering. Even so, it is still much higher than when this whole regulation FUD began.
This should give you great confidence for the future. If there is one thing that Bitcoin has incredibly well this year, it is that it has fought off heaps of FUD attacks very well. Ranging from Elon Musk, ESG and mining energy usage, China banning mining and/or bitcoin, USA regulations, Binance, Tether FUD, China's miners shutting off their machines causing the hash rate to drop 50%. Everything that has been thrown our way, bitcoin has handled it with more resilience than we have ever seen before. It could be that bitcoin is finally maturing, taking off it's training wheels and becoming an adult. Perhaps, you have heard the phrase, everyday that bitcoin is up and running, it is another day stronger. In 2013, China's FUD of banning bitcoin ended the bull run. In 2017, it could be argued that the bull run ended because the USA allowed Futures to be fast-tracked and for the first time bitcoin could be shorted. What I'm saying is that all of the FUD above would have, and has at times ended previous bull cycles. But now, it is just another badge or enemy that bitcoin has defeated.
Not only is it that bitcoin has matured, but so too has its holders. BTC has been flushed out of the hands of people who don't have conviction in the coin and picked up by those who do. They have their eye on the prize. They know that current price action is meaningless. Up or down, it doesn't matter. The thing that is important is that bitcoin is up and running without a hitch. Another day alive, growing stronger each day.
I will be honest with you, I'm not happy about this whole USA infrastructure bill, and having crypto regulations snuck into it. But there is light at the end of the day. There have been many politicians that have come out in support of bitcoin, and come out in support of cryptocurrency as a whole. They have stressed the importance of it, how it is leading innovation, and how critical it is for the future. Bitcoin is starting to find it's way into Washington D.C. Bitcoin is starting to infiltrate governments around the world.
First they ignore you, then they laugh at you, then they fight you, then you win. It sure is beginning to look like we are in the "then they fight you" stage.
There is so much to be bullish about that I truly do worry that I don't have enough bitcoin. I have said this many times, but people aren't ready for what is about to hit them. There will be a rush to bitcoin, and it will be a world of people who have bitcoin, and those who don't. Bitcoin's second layer, Lightning, has been making incredible progress and looks to finally be ready for real adoption. This makes bitcoin's use case even better. Using the first layer to preserve your wealth and send large payments that require the most security. Then, using Lightning for your every day transactions that are both nearly free and instant.
As I always say, do not take your foot off the gas pedal in your accumulation. There is a reason why the government tried to sneak this crypto bill into the infrastructure bill without anyone noticing. Bitcoin and cryptocurrency adoption is increasing at a blinding pace, and the government and people at power are beginning to panic. Hoping to find some way to stop it. They won't be able to.
How about you? Has this government FUD changed your opinion about the future of bitcoin or cryptocurrency? Have you kept accumulating?
As always, thank you for reading!
if only. the thing is that it is not easy to hodl, and extra expenses are creeping in normal life all the time, tempting you to spend. you need serious will power to withstand the urge.