Key Takeaways
- From its humble beginnings in 2009, Bitcoin has emerged as a disruptor, challenging the established norms of currency and finance.
- In a world increasingly reliant on digital technology, Bitcoin offers a glimpse into a future in which traditional financial systems may become obsolete.
- Currently, Bitcoin is merely a speculative asset, but it does represent a fundamental shift in how we think about money and value.
It has been fifteen years since Satoshi Nakamoto, the anonymous founder of Bitcoin, published the whitepaper of what Bitcoin is on the backs of the 2008 crisis, which pushed people to see the merits that it gives people the ability to store assets and providing the ability to have something decentralized and not controlled by one institution.
I am creating this article to celebrate Bitcoin’s 15th anniversary, which I believe is one of the most significant technological advancements of the past decade. However, its impact is likely much greater than what we see today. While many consider Bitcoin revolutionary, just wait and see how it will disrupt larger markets in the coming years and decades.
Bitcoin’s Ongoing Journey
Fifteen years after Bitcoin was created, many people still believe it will go to zero or view it as a bubble. Additionally, some do not fully understand what Bitcoin even is. This is normal with new technology, as adoption happens gradually. There will eventually be a tipping point when we see a significant shift toward widespread acceptance.
Currently, we are not yet at the point where everyone fully understands crypto and Bitcoin or the value of various cryptocurrencies. However, when that does happen in the future, those who believe in it today and invest based on their convictions will be the ones to reap the most significant rewards.
Recommended: 10 Reasons Why You Should Buy BitcoinÂ
Bitcoin’s Bull And Bear Cycles
If you look at Bitcoin’s journey over the past fifteen years, it has experienced several significant surges and declines. During these downturns, many critics declared it was the end and that Bitcoin would never recover. Yet, time and again, Bitcoin has bounced back.
It is important to note how the prolonged bear markets often relate to the halving cycle. Right now, Bitcoin is holding steady above the $55,000 mark, remaining higher than the 2017 peaks and establishing a support level.
While we are not seeing much excitement or upward movement, this consolidation is typical during certain phases of the halving cycle. Those who label Bitcoin a scam during its dips fail to recognize that its ability to recover repeatedly indicates its potential for long-term stability. This process mirrors how technology as a whole is gradually adopted.
Tech Bubble Comparison
Looking at the trajectory of major technology stocks from the early 2000s, you will see that many of these stocks experienced significant declines when the tech bubble burst. Numerous .com companies with little value went to zero and never recovered. However, the strong companies—Microsoft, Apple, Google, and Amazon—managed to bounce back after the dust settled, ultimately surpassing their previous highs.
Therefore, successful businesses—whether in tech or crypto—have a transformative impact and will endure over time. The crypto market operates similarly to the stock, forex, and commodity markets, which are driven by supply and demand, as well as the actions of buyers and sellers. There will be periods of bearish trends and stagnation, but the strong players always recover.
Black Swan Events
Now, it is easy to criticize Bitcoin when it is struggling, claiming it will go to zero or labeling it a Ponzi scheme. However, if you look at Bitcoin’s history, it has consistently bounced back from various black swan events, including the Mt. Gox incident and more recent collapses driven by leverage.
The failures of financial institutions like Voyager, Celsius, Three Arrows Capital (3AC), FTX, and Alameda Research have nothing to do with Bitcoin itself. Bitcoin is one of the most secure and decentralized assets available, and people need to recognize that its status as an asset class is independent of whether we feel bullish or bearish about it.
During this bear market, those who have committed to the long-term vision in the crypto space have been busy building. The previous cycle has helped filter out the bad actors and those seeking quick profits without true conviction. It has also eliminated much of the noise and weeded out projects that were not genuinely focused on creating something transformative.
Now, the remaining players—the ones still investing, stacking, building, or actively contributing—are the true believers. They understand that this technology is exciting and has the potential to change the world!
Related: A Quick Guide To Buying Your First Bitcoin
Maximum Pessimism And Pain
When people feel scared, and there’s widespread pessimism—when many believe the bear market is never-ending—that’s often when recovery begins. It is important to recognize Bitcoin for what it truly is: a piece of technology. During these times, you must hold onto your conviction to stay invested or add to your position.
Additionally, from a Bitcoin perspective, when miners start to experience significant losses and their revenue no longer covers mining costs, it is a critical signal. Mining comes with energy costs, and when miners face this level of pain, it can indicate that we are nearing a reversal or a bottom.
Final Thoughts
Despite the fear, uncertainty, and doubt (FUD) surrounding Bitcoin, it has repeatedly demonstrated its ability to recover, consistently proving the naysayers wrong. It is genuinely a game-changing asset!
I also firmly believe that one Bitcoin will always be equal to one Bitcoin. If its price fluctuates or drops, that only impacts those converting it back to fiat. When you consider how remarkable Bitcoin truly is, many people—maybe in 10, 20, or 30 years from now—will look back and wish they had grasped it sooner when it was not widely understood.
