The significant shift from Bitcoin optimization to Bitcoin realism

The significant shift from Bitcoin optimization to Bitcoin realism

There was a time when all cryptocurrencies traded against bitcoin (BTC). Speculators turned to other coins when they saw reaffirmed toxicology or promise hype, but bitcoin was their fixed coin choice.

Things have changed. Stablecoins is now a $ 150 billion underlying cryptocurrency market. The perpetual futures increase market perception too much and more often than not prices are controlled. Significantly larger amounts of capital, including institutional funds, have entered the market recently, with a modest impact on the price of bitcoin. So some former bulls now see bitcoin as boring.

Is this the end of bitcoin optimization? Probably not. But maybe it’s time to be more realistic.

See also: Gold, bitcoin or DeFi: how can investors hedge against inflation?

Bitcoin in a sea of ​​memes

Just as Disney stock can keep its value close to gold, new digital asset names like the Bored Ape Yacht Club (BAYC) non-mungible (NFT) token project can rise near bitcoin in the realm of assets digital. And, just as investors would be willing to acquire nearly a century-old Mickey Mouse rights, BAYC represents a new approach to brand building. And it might work.

But it may not work. It’s speculative, and that’s what traders like.

ApeCoin (APE) volatility is not the same as bitcoin today. The Apps are continuing the brand branding, and bitcoin is now trading against a macroeconomic background. It is realistic to say that bitcoin is consolidating itself as a mainstream asset, not only in the digital asset space, but also with some brave institutional investors, who are usually shy of volatility. Bitcoin is the long – established foundation in the digital assets market, but will it also be an ultimate reserve asset?

Honestly, it’s not Ripple (XRP), Shiba Inu (SHIB) or Bitcoin Cash (BCH) that we see SWFs starting to hold. No serious retirement fund is interested in it either. Realists believe that because bitcoin has been proven by its resilience through multiple crises and because it is truly decentralized and not controlled by a single government, it is different from its competitors.
We can see that in the “payments” sector, the dominance of bitcoin, with a market capitalization of $ 750 billion, is evident, as it declines over its competitors. However, at the same time, we cannot dismiss the rise of other “cryptocurrencies” against bitcoin as useless simply because they are not bitcoin. Realism opens the conversation and fosters understanding, which is ultimately the main motivator of adoption.

bitcoin for boomers

From a price standpoint, bitcoin is boring only for those who want the roller coaster of speculative trading. As this interest shifts to other areas, bitcoin grows, which in itself could unlock further growth.

As YouTube influencers move from farming and breeding to stacking and mining, haven’t we seen the bitcoin conversation become much more mature and focused on the first principles?

No, we did not see $ 100,000 bitcoin in 2021. But, so, do we need to be so fat when we have not yet reached 5% global adoption? Yes, in a less boring world, bitcoin can take advantage of human greed and speculation – as with all investments – but those same royalties can cause the value of any asset to fall.

See also: Boom or rust? Is there a way for the bitcoin price to reach $ 100,000 in 2022?

Bitcoin takes time

A bitcoin maximizer usually wants to have enough bitcoins to enter time and space. He probably wants to see a fairer and more equitable economy, so his initial support for bitcoin. An optimizer would also agree that it is better to have billions of people with little bitcoin than a few million people who have all bitcoin.

In fact, not only are lower purchase moments helpful for most bitcoin enthusiasts, but they also contribute to a wider distribution, as new entrants are attracted to the buying opportunity. This is a good thing.

In this regard, it is useful to ask yourself how many bitcoins do you think you should hold or aim for. And act accordingly.

Most bitcoins, including Michael Saylor, took time, if not years, to form an inspired opinion. Famous financier Ray Dalio is still changing. Most politicians barely understand bitcoin and I have to accept that there are even times when El Salvador’s President, Nayib Bukele, who made legal tender bitcoin in his country, looks at the charts and feels nervous.

See also: Bitcoin Law in El Salvador: Understanding Alternatives to Government Intervention

Anyone coming to the encrypted space for the first time will need time because of a funny dog ​​or a pixel protagonist who has emerged as a premium asset – plenty of time. But the end result is not necessarily the optimization of Bitcoin.

Since this is public participation, the majority of participants already have some bitcoin exposure in the space. It is only necessary to look at the theory of the game being played in emerging markets and in the context of the current sanctions regime, as well as inflation, to understand that most digital asset investors know that it is well hold “bitcoin”.

Too toxic?

Some say bitcoin maximalists are toxic. But, people are toxic everywhere. And what bitcoin maximalists do well is reaffirm the first principles, which help establish the conversation. Its motto is, you don’t need bitcoin, you need bitcoin. Is it true? Well, true or not, the point is: Don’t put all your savings in memecoin because the community is so nice to you.

Let’s be realistic. The world is facing currency depreciation, bitcoin mining can and does meet environmental targets, the United States and its allies have frozen Russia ‘s foreign reserves, the digital future is deep, inflation is not volatile and hold bitcoins in the context of all this. meaning.

Bear markets indicate where the plans and protocols are actually made. Axie Infinity’s Smooth Love Potion (SLP) signal is trading about 40 times lower than the highest ever rate. Bitcoin is about twice as low as the highest rate ever. It would not be unreasonable, or even unusual, to cross the $ 69,000 mark sooner or later.

Finally, “entering bitcoin” banks are a kind of oxymoron and some might argue that bitcoin is not necessary, but it is equally realistic to say that the integration of bitcoin into global finance and existing infrastructure makes the a more resilient asset as it attracts more stakeholders. which will be invested in the long run.

No one needs to be a maximalist bitcoin, but everyone should be realistic.

This article does not contain investment advice or recommendations. All investments and trades involve risk, and readers should do their own research before making a decision.

The views, ideas and opinions expressed herein are those of the author only and do not necessarily reflect or reflect the views and opinions of Cointelegraph.

Ben Caselin is a research and strategy leader at AAX, the cryptocurrency stock-powered LSEG London Stock Exchange Group. With a background in the creative arts, social research and fintech, Ben develops perspectives on bitcoin and decentralized finance and provides strategic direction at AAX. He is also an active member of Global Digital Finance (GDF), a leading industry body dedicated to the promotion and adoption of digital finance.

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