Bitcoin (BTC): its price doesn’t matter

The price of Bitcoin has been falling recently. This shows that it is time to adopt a more mature culture to build, grow and adopt bitcoin. The fact that its price does not matter sets it apart from other cryptocurrencies. The price of bitcoin has dropped recently, but what matters in the long run is its value proposition. Traders and speculators are losing interest. They continue to turn to new projects such as decentralized financing (DeFi) or non-expendable tokens (NFT). This disinterest is considered a negative evolution of Bitcoin for some but very positive for others.

Bitcoin: its price matters less than its value

Bitcoin and its “bear market”

The fall in the price of bitcoin is justified by some as the absence of its real functional utility. Since the creation of bitcoin, some analysts have described it as a Ponzi scheme. In fact, it depends on the ongoing artificial speculation in the cryptocurrency market. As speculators are drawn to all that shines, they lose interest in Bitcoin in times of ” bear market “.

However, bitcoin continues to trade at a much higher level than its 2020 and 2021 lows. Its adoption, which is increasing at the institutional level, represents a real value. The printing of money made by the Federal Reserve as well as negative real interest rates ended the IPO. Bitcoin and other altcoins are also affected. Only after this chaos has dissipated will we see what assets, projects, and actions really offer objective and tangible value.

Given the current fall in the market in general, traders need to rethink what ” good investment An investment, by definition, must be based on long-term confidence in the value of an asset and not on short-term growth projections. In the case of the price of bitcoin, it increases by 331% compared to January 2020. The performance of the S&P 500 lags far behind. It also surpasses total retail profits.

Currently, a weak culture of time preferences prevails in the Bitcoin community. The term weak means long term. It is fundamentally opposed to Ponzi mentality speculators who need quick wins all the time. That 331% is more than enough for the headlines they bought before the frenzy of the last two years.

Conclusion

The fundamental value of bitcoin will continue to be real in the future for those who know how to wait. Its detractors have blamed Bitcoin for needing meme speculators to work. After the disappearance of the latter, they deplore the absence of these speculators. This shows that Bitcoin is not a Ponzi scheme. The honesty of its current price testifies to the honesty of its core value proposition.

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Emile Stantina

Interested in investing and financial markets after a business school in Chambéry, his passion for cryptocurrencies was evident. The blockchain is without a doubt the universal tool of tomorrow.

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