The significant shift from Bitcoin maximalism to Bitcoin realism

The significant shift from Bitcoin maximalism to Bitcoin realism – Mail Bonus

It was a time when all cryptocurrencies traded against Bitcoin (BTC). Speculators ventured into other currencies when they saw secure tokenomics or promising hype, but Bitcoin was their settlement currency of choice.

Things have changed. Stablecoins are now a major $ 150 billion pillar of the cryptocurrency market. Perpetual futures contracts increase market sentiment too much and more often than not dominate pricing measures. Much more capital, including from professional associations, has entered the market recently with only a modest effect on the price of Bitcoins. So, some ex bulls now reject Bitcoin as boring.

Is this the end of Bitcoin maximalism? Definitely not. But maybe it’s time for more realism.

Connected: Gold, Bitcoin or DeFi: How can investors hedge against inflation?

Bitcoin in a sea of ​​meme

Just as Disney stocks can hold value alongside gold, new digital names like the nonfungible token (NFT) project Bored Ape Yacht Club (BAYC) can rise alongside Bitcoin in the realm of digital assets. And, just as investors were ready to acquire the rights to a nearly century-old Mickey Mouse, BAYC represents a new approach to branding. And, it might work.

It could not be, however. It is speculative, which is what traders want.

ApeCoin (APE) instability is not the same as seen in Bitcoin today. The monkeys are monitoring the brand impact while Bitcoin is currently trading against a macroeconomic background. It is realistic to say that Bitcoin is merging as a core asset, not just in the digital space, but even in some brave institutional investors – who usually avoid volatility. Bitcoin is the foundation of the digital asset market, but will it also be the ultimate reserve?

In all fairness, it is not Ripple (XRP), Shiba Inu (SHIB) or Bitcoin Cash (BCH) that we see government funds starting to hold. No serious pension funds apply for them either. Realists see that because Bitcoin has proven itself resilient through many crises and because it is truly decentralized and out of reach of any particular management, it is different from its competitors.

We can see that in the “payment sector”, Bitcoin’s superiority with a $ 750 billion market value is obvious, as it dwarfs next in line. At the same time, however, we can not dismiss the rise of other “cryptocurrencies” against Bitcoin as meaningless simply because they are not Bitcoin. Realism opens up for conversation and greater understanding, which is ultimately key to adoption.

Bitcoin for boomers

From a price point of view, Bitcoin is only boring for those who crave a roller coaster ride in speculation. As this interest looks elsewhere, Bitcoin is growing and that in itself may open up for more growth.

While influencers on YouTube are competing from farming and farming to mortgaging and minting coins, have we not also seen the conversation about Bitcoin become so much more mature and focused on the first principles?

No, we did not get to see $ 100,000 Bitcoin in 2021. But do we really need to be so greedy when we have not even achieved 5% international adoption yet? Yes, in a less boring world, Bitcoin can benefit from greed and speculation – as with any investment – but these same incentives can bring down any value.

Connected: Boobs or breasts? Is the way for Bitcoin prices to reach $ 100K in 2022?

Bitcoin takes time

The Bitcoin maximizer usually wants to have enough Bitcoin to do well in time and space. They probably also want to see a fairer and fairer economy – hence their support for Bitcoin in the first place. Maximum people should also agree that it is better to see billions of people hold a little Bitcoin than a few million own it all.

In fact, the buy-the-dip moments are not only beneficial for those who are most committed to Bitcoin, but they also help with further distribution as new entrants are attracted to the buying opportunity. That’s a good thing.

In this regard, it is helpful to ask yourself how much Bitcoin you think you should own or aim for. And then act accordingly.

Most trusted Bitcoiners, including Michael Saylor, took time – perhaps years – to come up with their encouraging views. The infamous financier Ray Dalio is still in development. Most politicians hardly understand Bitcoin and I have to assume that there are even times when El Salvador President Nayib Bukele, who made Bitcoin legal in his country, stares at the charts and is nervous.

Connected: Bitcoin Law El Salvador: Understanding the Options of Government Intervention

Anyone entering the crypto space for the first time because a funny dog ​​or pixelated primate turned out to be a loud asset will also need time – a lot of it. But the end result is not necessarily Bitcoin maximalism.

Since they are core assets, most participants in the space already have some exposure to Bitcoin. Just looking at the game theory that plays out in emerging markets and in the context of the current sanctions regime, as well as inflation, most investors in digital assets know that it’s good to have “some Bitcoin.”

Too toxic?

Some say that Bitcoin maximists are toxic. But people everywhere are toxic. And what Bitcoin charts do a good job of is reiterating the first principles that will help speed up the conversation. Their motto is, Bitcoin does not need you, you need Bitcoin. True? Well, true or not, the point is: Do not put your life savings in memecoin because society is so good to you.

Let’s be real. The world is dealing with currency devaluation, Bitcoin mining can serve and serve environmental goals, the United States and its allies freeze Russia’s foreign exchange reserves, the future is very digital, inflation is not temporary and keeping Bitcoin in the context of any of these types makes perfect sense.

Bear markets show what a project and protocol is really made of. Axie Infinity’s Smooth Love Potion (SLP) symbol is currently about 40 times lower than it has been before. Bitcoin is about 2 times lower than the historical high. Breaking $ 69,000 sooner or later would not be unrealistic or even unusual.

Finally, banks “getting into Bitcoin” are to some extent an oxymoron and some might argue that Bitcoin does not need any of that, but it is equally realistic to say that Bitcoin’s integration with international finance and current infrastructure makes the asset more resilient, where it attracts more stakeholders. which will be invested over the long term.

No one needs to be a Bitcoin maximist, but everyone should be realistic.

This article does not include investment advice or advice. Every investment and trading business involves risk and readers should do their own research when making a decision.

The views, thoughts and opinions expressed herein are the sole responsibility of the authors and do not necessarily reflect or represent the views and opinions of the Cointelegraph.

Ben Caselin is Head of Research and Policy at AAX, the cryptocurrency exchange that will be powered by LSEG technology at the London Stock Exchange Group. With a background in creative arts, social research and fintech, Ben develops insights into Bitcoin and diversified finance and provides strategic guidance at AAX. He is also an active member of Global Digital Finance (GDF), a leading industry organization that aims to drive the acceleration and adoption of digital finance.