Consider this: how long does it take you to liquidate your bank account? Well, you’d have to submit a request, wait for some manager’s permission, and then wait a few days until you can finally get your money. You pay middlemen fees, the government will take its share, and it’s likely that the bank will also come up with an extra tax to make you lose some more money – they’d do anything to make you regret exiting their system.
In the case of Bitcoin, cashing out is seamless and nearly instant. When you decide you want to sell your coins, you simply transfer them to the buyer’s address and wait until you receive your dirty fiat. Yes, you pay for a transaction fee and you do have to wait for block confirmations. But this will most likely cost less and take a smaller amount of time than receiving a fiat wire transfer – if speed is what you’re looking for, then you’re most likely better off using a stablecoin like Tether or else demanding for a cash payment.
So while you might be worried that the price is going down too fast, it’s specifically because Bitcoin is permissionless and a lot faster than the traditional financial system. And if you enjoy celebrating the monumental price pumps, then you should also have sympathy for the corrections and dumps. The principle is the same – investors get in and out whenever they want, without waiting for a third party to vet their decision.
Now let’s consider how empowering this is and what it entails for human rights. Is your wealth more protected if you must wait entire days until a bureaucrat decides that you deserve to withdraw your own money? I could argue that if you’re not in charge of making decisions in regards to your own savings, then they’re not really yours and you have effectively delegated control over the product of your time and labor.
Bitcoin belongs to whoever is able to sign the unforgeable cryptographic keys. And in order for the money to be truly yours, then you should be able to use it whenever you want, for whatever purpose you deem worthy of the expenditure. So when we see the price of BTC dumping really fast, it only means that the network protects private property rights very well and passes them on to other owners in a free and permissionless way.
Of course, 1 bitcoin will always be 1 bitcoin and denominating in fiat money is only a short-term game. But instead of panicking, casting blame on others, and feeling entitled to only see big pumps, we should appreciate that the system works like it should. Free markets are naturally wild – but Bitcoin always provides incentives for somebody else to step in and become the new owner via decentralized, immutable, peer to peer, and permissionless transfers.
So yes, bitcoin is bullish even when the price dumps. If this is your first cycle, then have some patience. Price discovery, even if it eventually leads to millions of dollars, happens in phases which adjust to human greed. The bull will be back as soon as more people understand why they need Bitcoin. Also, you shouldn’t be investing your rent money or mortgaging your house anyway (regardless of what Twitter influencers will do and say).
Donate to Bitcoin Takeover!
Enjoyed this article? You can support my work and keep me going independently by making a small donation. Your contribution will get acknowledged in the Hall of Patrons, so everyone can notice your generosity (just e-mail me to let me know that you want to get featured on the page).
Donate BTC to this address: 3CYLcubRfCMjqcpfEPPkgGsvLtQkAUqgQo
Send me 20 bits (about $1 when this article got published) by using the more environmentally-friendly Lightning network: lnbc20u1psg9f9dpp5yzzffde65afcvnngme3yuu75zl3jcmpmsdrff3l6vdfgcfrr6zpsdqag36k6urfdenjq6tnyp382mrvd9ekscqzpgxq97zvuqsp5pywpv5ee92qmjfsdw4qx5tdzkf68g85483ezngppl26re4cvg0rq9qy9qsqpx6mw5d22n57gzdxzcf06gstlzkhxpnarvwrtuguxaae0m8fjpa99muq9y2ad6xkhmqw9s2wdaqp0lnwj4nzwpdngc6qmrzst6fy59cpqp72na