$69K Bitcoin vs. $30K Bitcoin: Different Price, but Same Code and Guarantees on the Protocol.

By ssaurel | In Bitcoin We Trust | 17 May 2022


After an ATH of $69K in November 2021, the Bitcoin price is now around $30K. This represents a 56.5% drop in the price of Bitcoin from its ATH.

For those who only see Bitcoin as a speculative investment, this is certainly a time of extreme fear. Unfortunately, this category of people is still dominant in the Bitcoin world. I say unfortunately here because Bitcoin is much more than just another speculative investment.

And those who don’t take the time to understand the why of Bitcoin are missing the point. They see only this:

0*h8M3XpOqOAeMaGRA.png Illustration by Sylvain Saurel

This is where you need to be able to step back and see the bigger picture. For that, there is no magic bullet: you need to have made the effort to understand the why of Bitcoin. Unlike fiat currencies whose design is such that your purchasing power is doomed to erode over time irreparably toward zero, Bitcoin is a unit of wealth, not a unit of debt.

You need to understand this nuance that makes all the difference.

The price of Bitcoin has changed from $69K to $30K, but the source code remains the same. The design of the Bitcoin protocol has not changed. But it is the Bitcoin protocol that gives you incredible guarantees for your future, not the price at any given moment.

Back in December 2021, I reminded you that buying Bitcoin was just the first step. Then, to take full advantage of it, you need to understand the why of Bitcoin and in particular the 4 rules at the heart of the Bitcoin protocol:

  1. No monetary inflation
  2. No confiscations
  3. No censorship
  4. Anyone can verify rules 1 to 3 at any time

These are the 3 protectives “No” that Bitcoin allows you to verify at all times.

As the price of Bitcoin falls by more than 50% once again, you just have to ask yourself if these 4 rules are still guaranteed. The answer is obviously YES. This is what is essential.

Behind these rules that can be verified at any time, the Bitcoin protocol gives you 10 additional guarantees that will make all the difference in your future if you choose to become a Bitcoin HODLer no matter what:

  1. There will never be more than 21 million BTC in circulation
  2. 10 minutes delay on average between the issuance of each block of transactions
  3. An adjustment of the mining difficulty of the Bitcoin network every 2,016 mined blocks
  4. A decrease in the reward given to miners for every 210,000 blocks issued
  5. A consensus algorithm based on Proof-of-Work
  6. Bitcoin is the most secure decentralized network in the world
  7. A permanently available network
  8. A never hacked network
  9. The data of the Bitcoin Blockchain is immutable
  10. The Bitcoin code is open source

Whenever the price of Bitcoin has fallen by more than 50% in the past, these guarantees have always been preserved. That’s happening again today. This is the main reason why the Bitcoin price has always recovered and why we have then been able to reach new ATHs for the Bitcoin price every time.

As long as the guarantees that the Bitcoin protocol gives you are preserved, you can expect this to be the case. Bitcoin is thus like a phoenix that rises ever stronger. Opponents of Bitcoin find this hard to accept, but it is a reality you can check at any time because the Bitcoin source code is open.

So I’m not asking you to take my word for it, but to go and check for yourself if you want. That’s what I suggested you do in this article at the beginning of February:

"Do the Math, Run the Numbers, and You’ll Understand Why Bitcoin Is a Unique Species of Money"

Once you understand that the price of Bitcoin at a given moment has no impact on the guarantees that its protocol gives you, you will understand that as long as the design of the Bitcoin protocol remains the same, nothing changes. What changes here is simply the perception of investors, most of whom have a short-term view. They make the mistake of letting their emotions guide their choices with Bitcoin.

This is a trap that I encourage you to never fall into. If you do, then you will see the current situation as an opportunity. That’s why I chose to accumulate more BTC at $30K last week, and why I wasn’t afraid when the price of Bitcoin subsequently dropped to $25K. I know full well that in the future these price levels will be considered particularly cheap.

It’s up to you to take the right time horizon with Bitcoin: the long-term one.


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ssaurel
ssaurel Verified Member

Entrepreneur / Developer / Blogger / Author.


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