Seeing Past The Bitcoin FUD

The mood in the crypto markets can flip on a dime, and right now the mood has become bearish.  And why wouldn't it? If you pay attention to the news at all, there are quite a few things happening around the world right now that makes investing into not only bitcoin, but all investing in general a risky play at the moment.  I would argue that bitcoiner's have been tested throughout the last year more than at any point throughout its lifespan.  Having to deal with an endless onslaught of FUD attacks that earlier in bitcoin's lifecycle may have been enough to permanently put an end to the blockchain.  Each day that bitcoin survives and blocks are minted is another day that bitcoin has become stronger.  There is a lot to be bullish for with bitcoin, but it can be difficult to see past all of the FUD.  But, don't get rattled and sell out of panic, for many of us, being able to HODL through this noise will change our lives financially forever. 

So let's talk about this FUD, (fear, uncertainty and doubt) and the reasons why you should still be bullish.

Let's face it; the world is kind of a weird and scary place right now.  We are living in unprecedented times, and no one really knows for sure how things will turn out.

Covid changed everything.  It brought new problems such as increased money printing, inflation, government distrust, anxiety from lockdowns and much more.  But it also made existing problems even worse, such as government debts.  The USA's government debt recently reached an ungodly $30 trillion dollars.  A number that they may never be able to repay.  There has been conspiracy theories that perhaps that after covid began, governments saw it as a chance to prince and inflate their currencies to a large enough point, where it would be much easier to pay off their debts.  Even though the actually spending power of that money would heavily decrease, which in turn hurts people like me and you.  Having our cash spending power evaporate overnight.  All of those years working hard at our jobs, for nothing.  But, the inflation has gotten out of control, and now even governments are trying to reign it in by raising interest rates.  This of course has the market in fear that it might lead us into a recession. That is a large reason for why the price of bitcoin has recently dropped.

The other reason is the Russia and Ukraine situation.  I live far away from both of these countries and could never claim to know the full extent to what is happening.  But one thing is certain, tensions are rising, and the world is afraid that a war will break out.  This is the other reason why bitcoin's price has been dropping recently.  All of these things would be enough to consider packing things up and declaring the bull market finished.  We did have a good run, and let's come back in a few years and try again.

But, if anything, you should be much more bullish now than ever before.

Yes, there are small things to be excited about.  Such as corporations putting bitcoin on their balance sheet, the adoption of bitcoin increasing and becoming more mainstream, lightning adoption picking up making bitcoin viable for everyday transactions, the bitcoin blockchain continues chugging along with a halving every four years.  These are all bullish things, but they aren't the most important thing that is happening right now with bitcoin.

The most important thing that has happened is that bitcoin is no longer just speculative asset that people are investing in trying to get rich.  But it is front and center in the most important world events happening right now.  It has become a trusted asset, with its use-case becoming better known, and is the real macro play. 

Look at the Canada protest situation that has been taking place.  The government went so far as to actually block or freeze bank accounts for people that were donating or participating in the protests.  They were even threatening to freeze accounts for the companies who employed the people that were participating in these protests.  Bitcoin was used to maneuver around those restrictions and send money to these protestors, donating to their cause.  It was a crash course in the power and true value of decentralization, and not needing third parties to conduct transactions.  It was some of the best marketing for bitcoin's use case that we have ever seen before.

And then there is the Russia and Ukraine situation.  The USA has threatened to heavily sanction Russia if they choose to invade Ukraine. Like it or not, right now the world still operates mostly on a US dollar standard for international transactions.  If Russia was locked out of this US dollar swift network, it could be crippling to their country.  And so Russia has been exploring ways to bypass this, ways to not be so dependent on the US system.  It appears that they are turning towards bitcoin and cryptocurrency.  For the longest time, Russia was bearish on crypto, and was always rumored to be banning it.  But as you know, they have completely changed their stance on it, and are making it legal in their country.  Ukraine did the very same thing yesterday day as well, making bitcoin legal in their country. 

The world is changing and it appears that the old way of one country controlling the world reserve currency, and therefore having the most power around the world will soon be coming to an end.  Rather, there will be a decentralized currency, such as bitcoin, that isn't controlled by anyone or any country that will take over.  It appears that the world is moving towards bitcoin, and if that does take place, we all do not have enough bitcoin.

Now you may be wondering, if all of those macro plays are happening, why is the price of bitcoin faltering at the moment?  The point is simply this.  People are too concerned about the short-term.  Perhaps needing to sell off to pay for their taxes, worried about interest rate hikes and the economy heading towards a recession, or a war breaking out.  But think about where bitcoin was just two years ago before covid broke out, and now look at today.  So much has changed.  Now look forward five years.  The world will be much different, and bitcoin's adoption is only going to increase.  Continue to look past the FUD, and continue to stack SATS.

How about you? Does the recent market FUD have you worried? Or, are you able to look past it and think long-term?

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As always, thank you for reading!