The price of Bitcoin has followed a very precise market cycle since its creation. A four-year market cycle, the end, and beginning of which corresponds to a Bitcoin Halving. The next Halving is scheduled for the beginning of 2024. If you're already despairing of the current Bitcoin Bear Market, remember that you'll have to take your lumps.
But if you've figured out the why of Bitcoin, it won't be very complicated.
Instead, you'll see this Bear Market as a unique opportunity. As I said recently, a painful market brings two positive things: the chance to take the time to study the Bitcoin revolution, and then to accumulate BTC at a discount.
The two must go hand in hand because accumulating BTC without understanding the why of Bitcoin will lead you to make errors of judgment later on by letting your emotions override your sense of logical reasoning at the slightest drop in Bitcoin's price that is too great for you.
Bear Markets create Bitcoiners.
Not everyone becomes a Bitcoiner in a Bear Market, but those who survive the market purge inevitably do. Once you pass this test, your belief in the Bitcoin revolution will be stronger than ever. For newcomers, it's in these moments that they'll feel like real Bitcoiners too.
As more people who think they are Bitcoiners come into the market, we usually see a reversal of the trend. It takes time, of course, but eventually, it happens. Eventually, market conditions become conducive to a Bull Market. Bitcoiners create Bull Markets.
And that's when the danger comes.
In a Bull Market, once the price of Bitcoin has started to rise sharply, we usually see the price of Altcoins with the largest market cap rise as well, and finally, Altcoins with the smallest market cap will experience phenomenal price increases. The slightest rumor can trigger an influx of buying. The Whales are having fun doing pumps & dumps to take advantage of the greed of investors who are only thinking of generating more profits.
Bull Markets will have the perverse effect of creating Shitcoiners. The newer Bitcoiners, the less convinced of Bitcoin's incredible future, will want to give in to the sirens of easy money. Seeing some Shitcoins rise +1,000% in a few days or hours sometimes, these less convinced Bitcoiners, who are therefore not true Bitcoiners yet, will make bad decisions that will later prove to be dramatic for their money.
Remember SHIBA INU at the end of 2021. I still remember some people coming to me and telling me that Bitcoin was outdated, and buying SHIBA INU, convinced that its price would one day reach $1 ... I had made a small mathematical demonstration to bring some people back to Earth, but it was not enough for some who still believed. Shitcoiners create Bear Markets.
What happened next proved the Bitcoiners right. Because all these abuses unfortunately create speculative bubbles around the price of Bitcoin and Altcoins. And when these speculative bubbles burst, we enter a Bear Market. And this can last for months or even years. There are no rules for this.
In a Bear Market, there is a lot of drama. Investors lose everything, as we just saw with LUNA, which some had seen as the new Ethereum, or even better. Terra 2.0 has just been launched in the hope of reviving the machine, but this Shitcoin is doomed to failure. Unfortunately, some people have a hard time facing reality.
As the Bear Market continues, the truth will dawn on them: Bitcoin is the only thing that matters in this ecosystem. Bitcoin is the signal, everything else is just noise.
As you can see, this is a vicious circle, because some people will continue to fall back into the same pattern by buying Shitcoins again at the Next Bull Market. It seems they never learn from their past mistakes.
Now that the diagnosis is made, you have to ask yourself how the ecosystem can get out of it. How do we help investors understand that Bitcoin is the signal, and everything else is just noise? How do we prevent investors from constantly letting their greed get the better of them and ending up switching to Shitcoins?
As I often tell you, the key is EDUCATION. It is by educating as many people as possible about why Bitcoin works, how it works, and the impact that hard money will have on the world of the future, that we will be able to get out of this downward spiral. Because some people take several 4-year market cycles before they open their eyes. Everyone has to make their own mistakes of course, but we can accelerate the awareness.
Everything starts with education. If you help someone to understand why Bitcoin exists, then you've already done something right. That's what I've been trying to do in my small way day after day for several years. I urge you to do the same as soon as possible.
Everything starts from there and together we can make a difference because Bitcoin is the solution to a whole bunch of challenges the world is going to face in the coming years. It is in all of our interests to make the most of it for a better world for most people in the future.
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