The biggest mistake that you can make with Bitcoin is underestimating it. Bitcoins to rebel, be a contrarian, and do exactly the opposite of what you’re expecting to happen. Prices will soar at a faster rate than you can imagine, but they will fall even faster. There will be years when nothing seems to happen. But there will also be days when decades' worth of events happen. That is the Bitcoin market, and that is why so many of us love it.
Since the covid pandemic began spreading in 2020, Bitcoin has changed a lot, especially people’s perceived image of it. While not fully mainstream yet, it is getting closer by the day. With everything that has taken place, there is one event that changed everything. When we look back on the history of Bitcoin, we will likely think of it split into two time periods. Before this event happened, and after it took place. The biggest development in arguably Bitcoin’s entire history was when El Salvador announced that they were making it legal tender within their borders.
In a blink of an eye, the entire Bitcoin game had changed. In the past we had our sights set much smaller. Which merchants would allow you to pay with your Bitcoin? Which companies would put Bitcoin on their balance sheet? If Bitcoin were to become successful, we knew that eventually, countries would make it legal tender, but we didn’t dare to think it would happen this quickly. We were at least ten years ahead of schedule when El Salvador’s President made the announcement.
It was the biggest announcement in Bitcoin’s history and it took the world by storm. All of a sudden core Bitcoiners shifted their focus to macro events and nation adoption. Which country would be the next country to make Bitcoin legal tender?
But in my opinion, that is when Bitcoiners began to lose their way. Only focusing on making Bitcoin a great reserve asset, caring too much about macro, and building or innovation came to a halt.
For example, if you were to watch the most recent Bitcoin Conference. On the main stage, a majority of the content was macro, or adoption related. There was far less focus on actually building out Bitcoin. There is a famous line from one of my favorite movies, Field of Dreams.
“If you build it, he will come.”
Bitcoiners need to take this approach to heart. By focusing on innovation, making the Bitcoin network even better, continuing to build on it, and expanding the capability of the Lightning and layers beyond it. Eventually, that will not only cause mainstream adoption to happen. But that is when full nation-state adoption will happen as well. If you build out the Bitcoin network greatly, they will come.
As I mentioned before, I do think that the El Salvador legal tender announcement was the biggest news in Bitcoin’s history. It showed us that we were all right and that Bitcoin was winning. But it also distracted us from what is really important. With us deep in the bear market, it appears that we are finally shifting back to a mindset of building with Bitcoin. That will prove to be very bullish in the future.
How about you? What do you think is holding Bitcoin back?
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