Bitcoin price has remained in the low $ 30,000 price range, the same range it has been for what now feels like forever. And you can easily see that getting to people. People who preached that Bitcoin was going to the moon during its euphoric rise earlier in the year; they don't declare it all over. Many of them have sold their bitcoins and if not, stopped their accumulation. In my opinion, this is the worst thing you could do, and let me tell you why. Don't miss this golden opportunity right now in Bitcoin.
In the short term, what will happen to the price of Bitcoin? Will it sink further, or will it finally rise? I have no idea either the way this market has been going recently; anyone who tells you otherwise is full of lies. But what I do know is that I am completely convinced of what Bitcoin is and the future it is heading towards. A famous phrase that you will often hear in relation to Bitcoin is; “When you fear, reduce.” This will almost instantly alleviate most of your fears and doubts. You will realize that this is only a small correction in the price of Bitcoin, in what has always been an upward trajectory. Yes always. Even during the last bull run when bitcoin peaked at $ 20k and then when it hit $ 3k. If you were to zoom out, you would still see that Bitcoin's trajectory was still moving upwards. The same is true today. Even though the price has dropped more than the 50% in just a few months, it's still trending upwards. Remember, just last year at the beginning of December, we had yet to break a new record high price for Bitcoin. Declining even further, Bitcoin hit $3,500 last year in May. With that in mind, it will help you feel a lot better since Bitcoin is at $ 31,000.
That alone should put your mind at ease.
But for those in the know, they know that this is a golden opportunity available right now in Bitcoin. Although I won't lie, $ 31,000 Bitcoin is still very expensive for most people, always remember that you can buy a small fraction of Bitcoin. The stacking of small portions will someday combine to equal a larger portion. In my opinion, this is as amazing an opportunity to get Bitcoin at a discount as we had in March 2020 when Bitcoin dropped to $ 3,500. This may shock you since the prices are so different, but let me explain my thinking.
The value proposition for Bitcoin is much different than it was just a year ago. No, the protocol hasn't changed, but the world has. The world has started to wake up to how it can be an asset to protect them from governments printing money, inflation, maintaining freedom and the list goes on. For real bitcoiners, we've always known this. But the world began to wake up to him.
And then the corporate world turned its attention to Bitcoin. Microstrategy, Tesla and others. For those of us who believed in Bitcoin, we always believed that Bitcoin would be a great hedge against inflation and preservation of your wealth. Finally be rewarded for saving instead of being punished. But not many of us ever expected companies to put their balance in Bitcoin. And if they did, definitely not that soon. Covid and government money printing has accelerated the adoption and use of Bitcoin by at least 10 years, and so today's price is now potentially an even better deal at a discount compared to last year's price drop.
But that's not all, there's more.
Government acceptance has also begun. El Salvador has made Bitcoin legal tender. Again, a move that even the most hardcore Bitcoiners probably didn't see happening for at least a decade. It only takes one small domino to fall, and soon more will follow. In this situation, El Salvador is the first domino. Their Bitcoin Legal Tender Act will begin in September and the whole world will be watching. I don't think we'll see any other countries accept BTC as legal tender before that time. Everyone wants to watch and see what happens. If Bitcoin and Lightning can successfully handle the transactions that El Salvador will require, then the floodgates will open.
Trust me, once that happens, there will be price swings unlike any you've ever seen before. There is a famous phrase that says altcoins are made to take your bitcoins. It's true. Too many people will learn this the hard way that these coins got you into the casino, they were a distraction to take your attention away from the actual game being played.
Always remember this; the name of the game is to accumulate as many bitcoins as possible. The second layer of Bitcoin Lightning has been gaining incredible momentum over the past few months. It appears to be everything it was promised while it was in development. This will allow everyday transactions to be done extremely quickly and cheaply. This alone will remove the 70% use case from altcoins. These market caps will be absorbed by BTC.
And then last week Jack Dorsey (founder of Twitter and Square) will also dive into DeFi development for Bitcoin. If this can be pulled, the use case for the remaining 30% of the coins will be removed. There are many people who believe that the ecosystem will forever include a few coins, that many coins can be winners in this space. There are some experts who believe that this is not the case. They believe it will be a winner takes all kind of ecosystem environment. Which one will happen? Only time will tell.
The future of Bitcoin is incredibly bullish and I hope you haven't stopped accumulating. This market can be very stressful and question your decision making more times than one can count. All you have to do is cut back. That's why I've made a personal vow to never take my foot off the gas pedal in my build-up. And that's why dollar cost averaging is such a powerful method of accumulation.
My point is that we will look back on this time period in just a few months and wish we had accumulated more. Then $ 31,500 will feel very cheap.
What about you? Have you been steadily accumulating bitcoins during this time? What are you whining about bitcoin?
As always thanks for reading!