There has been a lot of uncertainty in the Bitcoin and cryptocurrency markets this week. Most of these stem from potential regulations starting in America that could have a major impact on the future of cryptocurrency. While the US is not the only country out there, it would be irresponsible not to acknowledge the financial importance the country holds. Since the dollar is currently the world's reserve currency, a large percentage of the world's financial action takes place here, and then the whole military aspect that comes along with it. Like it or not, if they decide to take action on something, other countries are more likely to follow suit. Even with this heavy FUD, Bitcoin was up significantly for the week, something that surprised many of us. As the US bill looked like it would actually pass, then prices in the market started to fall. But it is important to note that prices only fell by about 5% and have since recovered.
This is incredibly bullish for Bitcoin. Bitcoin is handling this FUD battle incredibly well and that should give you a lot of confidence about the future of this blockchain. Just look back to a few months ago when Bitcoin was at an all time high and then Elon Musk tweeted about Bitcoin. And then the price dropped. Although it is debatable whether this is the only reason for the price drop or perhaps just the first domino. Regardless, something that shouldn't even be a big deal has contributed to Bitcoin falling by over 50%. This led people to believe that the bull was officially finished.
But now fast forward to today. As I just mentioned; the US government was trying to sneak in cryptocurrency regulations that could have a real negative impact on the future of cryptocurrency and especially the freedom aspect that we all value. Surely something like this has to have an even bigger impact than just Elon Musk sending out a few tweets, right? But it didn't happen. In fact, Bitcoin only fell by 5%. Although it could still fall further, for now the price seems to be stabilizing and recovering. However, it is still much higher than when all this regulation FUD started.
This should give you great confidence for the future. If there's one thing Bitcoin has done incredibly well this year, it's that it's been fighting off a bunch of FUD attacks very well. Starting with Elon Musk, using ESG and mining power, China banning mining and/or Bitcoin, US regulations, Binance, Tether FUD, Chinese miners shutting down their machines causing the hashrate to drop by 50%. Everything that's been thrown our way, Bitcoin has handled it with more resilience than we've ever seen before. It is possible that Bitcoin will finally mature, take off its training wheels and become an adult. Perhaps, every day you have heard the phrase that Bitcoin is working and stronger by another day. In 2013, China's Bitcoin ban FUD ended the fight. In 2017, it could be argued that the bull run ended because the US allowed futures to fast track and for the first time Bitcoin could be shorted. What I'm saying is that all of the above FUD would have and sometimes have ended previous bull cycles. But now it's just another badge or enemy that Bitcoin has vanquished.
Not only has Bitcoin matured, but so have its holders. BTC has been thrown out of the hands of people who have no belief in the coin and has been picked up by those who do. They keep their eye on the prize. They know the current price action is pointless. Up or down, it doesn't matter. The important thing is that Bitcoin works seamlessly. Another day alive, stronger every day.
I'll be honest with you, I'm not happy about this whole US infrastructure bill and that cryptocurrencies have crept into it. But there is light at the end of the day. There have been many politicians who have come out in support of Bitcoin and come out in support of cryptocurrency in general. They highlighted its importance, how it drives innovation and how critical it is for the future. Bitcoin is starting to find its way into Washington. Bitcoin is starting to infiltrate governments around the world.
First they ignore you, then they laugh at you, then they fight you, then you win. It's certainly starting to look like we're in the "then they fight you" stage.
There is so much to grow that I am really worried about not having enough bitcoins. I've said this many times, but people are not ready for what's about to hit them. There will be a rush to bitcoin and it will be a world of people who have bitcoins and those who don't. Bitcoin's second layer, Lightning, has made incredible progress and seems finally ready for real adoption. This makes the use case for Bitcoin even better. Using the first layer to preserve your wealth and send large payments that require the most security. Then using Lightning for your daily transactions which are almost free and instant.
As I always say, don't take your foot off the gas pedal in your build up. There's a reason the government tried to slip this crypto account into the infrastructure account without anyone noticing. Bitcoin and cryptocurrency adoption is increasing at a blinding rate and the government and people in power are starting to panic. Hoping to find some way to stop it. They won't be able to.
What about you? Has this government FUD changed your mind about the future of Bitcoin or cryptocurrency? Are you still hoarding?