Once again, we seem to be on the brink of a global financial recession. And Bitcoin doesn’t just fix this – it was designed to resist the vices of the global financial system. The FED slashes down interest rates to zero? Quantitative easing reminds us of 2008? The amounts of USD being printed dramatically remind us of that time when the Lehman Brothers collapsed? Well, there’s hardly any silver lining in all of this.
Central bankers think that injecting more capital into the economy will encourage investors to keep on buying. However, the salty scent of desperation can be sniffed from miles afar.
Today, just 3 minutes after the US stock market opened, a circuit breaker was triggered. The S&P index collapsed by 7% and everyone had to take a 15-minute break to reflect on the consequences of this plunge.
Why Is Bitcoin ALWAYS Bullish?
Today, Bitcoin didn’t do so well either. In the last 24 hours, it once again tested the $4600 resistance point and didn’t really moon when FED chairman Powell made the announcement about zero interest rates.
However, nobody can print more bitcoins and have them inflate the supply. On the long term, Bitcoin is always bullish.
As long as you run your full node (which comes at a price of less than $100), you can validate the entire transaction history and be sure that the BTC you’re receiving is real and issued according to the predictable monetary policy.
We know for certain that there are 18.27 million BTC in circulation, and by 2140 there will only be 21 million. Can you verify the entire supply of dollars, euro, or gold? Is there any way to keep track of the money laundering that big banks covertly support? Can you really be sure that the money that exists in your bank account can be fully withdrawn at any time? Of course not!
But if you visit a block explorer like Blockstream‘s or a mempool visualizer like mempool.space, you will realize that everything works as designed and the Bitcoin system is as honest and transparent as ever.
Institutions Suck: Dumb Money Better Stay Away From Bitcoin
The reason why we’re seeing a correlation between Wall Street and the price of Bitcoin is that too much dumb money has entered the market. In the process of diversification, lots of financial firms have bought some BTC.
To them it wasn’t a safe haven, unconfiscatable money, or a global reserve currency. They regarded Bitcoin as “the best performing asset of the decade” and the golden goose that keeps on laying precious eggs to make them gains.
But when the situation got bad, the bitcoins were some of the first assets they dumped. They regard Bitcoin as a “high-risk” investment, they have very little trust in the network, and most likely don’t care about separating governments from money.
These “institutional investors” only care about maximizing their investment in USD. And that’s completely fine, except that they never understood Bitcoin and never cared much about it.
We cheered for the involvement of the CME and CBOE in Bitcoin back in December 2017. We were happy when they also expressed their contentment with Bitcoin in 2018. And now when they see the first signs of a recession, they panic sell their BTC to only prove that they never understood what they’re holding.
As Long As Governments Print More Money, Bitcoin Is Bullish
In these seemingly hard and desperate times, we should not forget why Bitcoin was created in the first place. It has a fixed and predictable monetary policy, it allows anyone to participate in the minting or verification processes, and it resists confiscation and censorship.
The sooner people understand the value proposition of Bitcoin, the quicker we start posing a serious threat to the greed of “institutional investors”. The end game isn’t to make a quick buck, but to keep governments and central banks in check.
As more fiat enters markets, it’s likely to also see the price of BTC pump. But this time around, $20k won’t be the same as 2017’s high due to inflation. We might shoot even higher because their greed knows no limit. But if we give in and sell all of our bitcoins for inflatable fiat, we only fuel their modern slavery machine.
If these governments and central banks keep on printing money to save the stock market and we use their fiat to buy Bitcoin, they will pay by seeing their crooked mechanisms collapse. Unless they understand that adding more debt to the middle and lower classes leads to their financial demise, they will just carry on with their greed.
We’ll see the stock market collapse every decade, we’ll see banks get bailed out by the government at our own expense and we’ll witness crises where honest working people can’t even withdraw their hard-earned money from the bank ATM.
Remember the bank run from Greece? Greek citizens could only withdraw 60 euro/day, regardless of how much money they held in their accounts. The quick liquidations in Bitcoin only show that pulling out of the system is faster and smoother than anything we’ve ever seen in this overly restricted age. It’s because Bitcoin is freedom and a way for us to exercise our long-forgotten financial rights.
Repeat after me: institutions suck and Bitcoin is the currency of the people.
Can you verify the maximum supply of USD? With Bitcoin you can check every unit in circulation.
Can you get involved in the policy-making process of your national bank? With Bitcoin you can simply run a full node for less than $100 and you know that you’re protecting yourself.
Can your dollar bills get inflated or confiscated by a sudden political decision? Your bitcoins can’t, ownership is cryptographically protected with the kind of encryption that would take hundreds of years to crack.
Can your bank close down your account or stop you from sending money to somebody? Bitcoin is permissionless: as long as you pay a transaction fee that miners desire, you can send any amount to anyone around the world.
Bitcoin is always bullish thanks to its resilience and fixed monetary policy. Institutions can increase and lower its valuation on fiat-based markets, but they can’t remove its fundamental features. Nobody can censor or confiscate Bitcoin. Inflating it is nearly impossible and you’re protected against such attempts at a very low cost.
And if you want to start mining, you simply purchase a device and plug it to an electricity source. Can you also participate any other financial market with such ease? Is there any other sector or industry where you bring a contribution without the approval of any government or cartel?
Now forget about your gloomy thoughts and start explaining to people how Bitcoin works.
You’ve done it during the bull market, you’ve possibly helped a couple of buddies make some “sick gainz”, and if you’re reading this you’re probably in a better financial position than most people around the world.
But think about the worker who gets screwed by the crooked financial system: saves money which loses its value through inflation and can’t even access most investment portfolios or even withdraw his own savings in times of crisis.
Now think about the single mother who raises her children with the money she makes by working 2 jobs. She wants the best for her kids, definitely thinks about their university education, but the system is rigged against her. No matter how much she saves, her money will keep on losing value. And if she invests when mainstream media tells her to, then she will most likely end up on the losing side and fill the pockets of Wall Street crooks.
Institutions suck. They’re greedy, they have their own agendas, and they only pray to the almighty central bank currency. It’s not them who need Bitcoin. It’s the everyday person who is tired of getting screwed and most likely finds justice in the demagoguery of politicians like Bernie Sanders.
If these hard-working left-leaning people were educated to understand Bitcoin and refrain from taking advice from television shows like CNBC’s “Fast Money”, they would effectively bypass the system that enslaves them and steals precious time of their lives.
Bitcoin won’t work as a store of value if we tell institutions to speculatively invest 1% of their capital. It’s up to the people who have lost faith in their governments and leaders to take initiative. The sad part is that there are billions of people who get oppressed by financial and political systems. The good part is that we have Bitcoin and it has functioned extremely well during the last 11 years.
Repeat after me: institutions suck.
If we want to build a better financial system and currency for ourselves, we need to be the first to embrace Bitcoin and promote its values to those who need it the most.
The process of achieving success is going to take longer and we will most likely face more roadblocks. However, it’s the steady way to remove governments of the world from their position of monopolistic power.
If you enjoy seeing these dramatic market cycles every decade, then feel free to remain numb and stare at graphs. But if you’re here for a change, spread the word about Bitcoin to those who truly need it.
The source for these wonderful gifs is Rhyme Combinator's "Bitcoin Rap Battle", where an imaginary confrontation takes place between Alexander Hamilton and Satoshi Nakamoto. Bitcoiners Adam Back and Charlie Lee can also be seen in the attendance.