Bitcoin Soul Chicken Soup | Justin Roberti | The Capital | June 2021
Some wise advice from Tim Draper, Brock Pierce and other cryptocurrency leaders.
For Bitcoin enthusiasts living in El Salvador, this has been a good week. For the rest of us, this week is “meh” at best.
According to the tweet Record bitcoin, El Salvador’s President Nayib Bukele promised to provide every registered Salvadoran citizen with $30 in Bitcoin, adding: “The wallet application will be available wherever a mobile phone is connected. You You don’t need to make a mobile phone plan to use the app.”
According to Reuters, Bukele stated in a national speech that recent laws have made Bitcoin a legal tender. Will take effect on September 7.
In all other places where Bitcoin is not given to everyone? It’s kind of a relief to be back on Earth, but being happy for others.
Some smart advice about Bitcoin
Bitcoin, of course, briefly touched $35,000 this week-still a far cry from the sweet days when it broke $65,000 in April.
In the past week or two, there has been some obvious pessimism in the encryption field. As we all know, the prospect of decentralized currencies and the value of Bitcoin are especially based on the beliefs and active participation of community members. In other words, being discouraged is actually bad for Bitcoin.
Therefore, for all those who watch and hold and want to know when this decline will end and when will begin to march towards $100,000 again, there is a reason to believe that you can balance your fear of missing out (FOMO) with a valuable but A warning story that is recognized as not so appealing, balances your fear, uncertainty and doubt (FUD).
Remember, we asked all interviewees-every system has flaws, and informed investors should understand both sides. Introspection and criticism are essential for any type of strong community, including crypto communities.
First of all, here are the comments of billionaire investor, entrepreneur and famous Bitcoin advocate Tim Draper.
Draper’s comments indicate that the only thing we need to worry about is the lack of Bitcoin. There really isn’t any FUD there.
Note: “Bitcoin will eventually become the currency retailers want, so you’d better have some. As news spreads, retailers can save 2-4% by using OpenNode. The transition from fiat currency to Bitcoin will be very significant. Quickly,” Draper said.
Draper recently announced its investment in OpenNode, a Bitcoin payment processing platform. Draper also recently confirmed his expectations that Bitcoin will reach $100,000 in 2021.
Believe: “Bitcoin stands for trust and freedom, which are the two cornerstones of any successful economy. Believe that you no longer need to trust your existing bank or politician because they know there are only 21 million. The freedom of Bitcoin is open and transparent. , Can be used anywhere in the world,” Draper said.
Brock Pierce, chairman of the Bitcoin Foundation, is also positive about his cautionary recommendations.
Note: “The beauty of the Bitcoin and cryptocurrency markets is that they have become stronger over time. They are able to withstand criticism and take on all the different events that occur due to the technological and regulatory circumstances that arise,” Pierce said .
From Pierce’s perspective, Bitcoin has proven that it can withstand the challenge.
Believe: “It’s important to remember that China, India, and other countries in the world-even places like New York State-have taken tough stances and regulations on cryptocurrencies at different points in time, but the market continues Growth and evolution,” Pierce said.
Smarter advice from crypto leaders
Leading cryptocurrency influencer Scott Melker uses long-term cryptographic methods and research models in his podcasts and investments. However, Melk is a realist, and his comments do acknowledge the inherent volatility of cryptocurrencies.
Note: “Crypto is an emerging asset class with high volatility. With this in mind, it is important to understand that the value of your portfolio will fluctuate greatly. Unless you are a professional, you should probably focus on slow investments Instead of trying to trade cryptocurrencies. It should be viewed through a long-term perspective, as an investment for decades to come,” Melk said.
However, volatility will not change Melk’s view of the long-term value of Bitcoin as an asset.
Believe: “Bitcoin has the potential to change the world. It is mathematically scarce and a perfect hedging tool against inflation and abuse of monetary policy. For those who are left behind by legacy systems or cannot use them in the first place. In other words, it is also a means of exchange and a store of value. The price of Bitcoin is not the same as the value of Bitcoin, especially if the legacy system fails. Cash is used for consumption and Bitcoin is used for savings,” Mel Ke said.
Siegel is frankly refreshing-after all, not everyone has always been HODL.
Note: “I’ve made a profit. Yes, it means I will not keep everything. It is important to make wise decisions for myself, and the crypto market will not always rise. It is important not to be too addicted to hafnium, otherwise it may Will lose money,” Siegel said.
But for Siegel, it is only a matter of time before the rest of the world catches up with Bitcoin believers.
Believe: “The adoption of cryptocurrency is inevitable. I cannot see a world without Bitcoin and blockchain technology. It is only a matter of time before others catch up,” Siegel said.
Benjamin Leff, chief operating officer of Sheesha Finance, believes that there are simple guidelines for dealing with any trace of FUD in your mind.
Warning: “Fear, uncertainty and suspicion existed long before encryption, but the principle is correct… Two suggestions about this, the first is a simple answer, always do your own research (DYOR) And ask questions in the group/with your people. Really believe that each other can help and support each other. My second suggestion is to always, always sleep when making a decision. Get a good night’s rest and don’t think about it before going to bed , Giving you time to deal with everything and return to a new state for the next day,” Leif said.
Ultimately, Leff believes in the power of blockchain technology that supports cryptocurrency.
Believe: “Bitcoin is the most decentralized cryptocurrency in the world. Stopping Bitcoin trading at this time will require shutting down the entire Internet-this is impossible… Bitcoin’s price fluctuates greatly, frankly, considering it It is an asset that is completely unrelated to all traditional markets. It should be. However, Bitcoin’s infrastructure is built on the blockchain, it is not volatile, and has never been hacked since its establishment 12 years ago. Damaged or negatively affected in any way,” Leif said.
Zeppettini warned investors not to allow themselves to be overly influenced by the media chatter around Bitcoin.
“Attention: Investment is a war against everyone. The 24-hour news cycle is used to get rid of weak hands when big players want to buy… If you lack faith and are easy to shake, your money is easy to be freed,” Zepei Tiny said.
He believes that the power of Bitcoin can balance the unbalanced competitive environment of traditional finance.
“Believe: encryption provides us with an opportunity to replace very manipulated systems with something that has clearly defined rules and does not deal with those who have the best connections,” Zeppettini said.
Bergquist reminded us in his comments that Bitcoin is still in its early stages-but we have seen this pattern in other assets before.
Note: “Bitcoin is still in its early stages. Many assets have periods of volatility, such as when gold officially left the financial system in the 1970s. The more its value increases, the greater its volatility. Bitcoin is similar During the period, there are obvious rises and falls,” Bergquist said.
Bergquist believes that Bitcoin’s short-term fluctuations can be resolved through a long-term perspective.
Believe: “If someone wants to buy Bitcoin as a store of value, then if you have a long-term vision, then the timing of the purchase is not wrong. Looking back at the annual market lows, Bitcoin has always shown continued positive growth-only The one-year low is lower than the previous year. Due to the fixed supply of Bitcoin and the increasing global adoption rate, the value of the asset continues to rise in dollar terms,” Bergquist said.
For Xu, the main problem with Bitcoin is regulation.
Warning: “As crypto is still in its relative infancy, regulatory uncertainty may affect the growth of the industry and the value of crypto assets,” Xu said.
However, he believes in the demand for cryptocurrencies and the control they provide to investors.
Believe: “In addition to the fact that the clearing and settlement speed of cryptocurrencies is faster than all fiat currencies in the world, cryptocurrencies also provide more control over personal finances. As institutions begin to disappoint people more frequently, people I will want this kind of control more and more,” Xu said.
Jobanputra warned that investors should not worry about negative news.
Warning: “In the past 8 years, we have seen hundreds of news reports that Bitcoin is dead, and most of them are based on incomplete information. The difference between encryption development and other major technological and financial paradigm shifts The point is that information is now shared instantly and rarely verified,” Jobanputra said.
In the final analysis, believing in the future of cryptocurrency is believing in the talents of relevant personnel and the power of the technologies they create.
Believe: “The speed of encryption construction and adoption is faster than we thought 8 to 10 years ago. Only when Bitcoin poses a threat to its power, countries will try to ban Bitcoin-but for every restriction on mining or use Of the countries, ten more countries will accept the technology to the point where talent and the dollar will follow,” Jobanputra said.
Before dawn is always the darkest-but we really cannot be sure when the dawn will come.
The infrastructure plan announced by President Biden this week helped boost the cryptocurrency market and the traditional market. Recently, the best news about Bitcoin seems to go far beyond blockchain innovation centers like the United States-including Venezuela is considering following the example of El Salvador in adopting Bitcoin as its national currency.
Perhaps this temporary decline is an opportunity for innovation in areas in the world that desperately need the solutions that Bitcoin can provide-providing financial services to those without bank accounts, providing services to more of the world’s population, and ultimately realizing it for all People with socio-economic background create a better life.
This may not be the silver lining that some investors hope for, but if you are lucky, from a security perspective, this time may be seen as a period of positive growth.