The Bitcoin market is unlike any other asset class on Earth. It is a market that is constantly looking forward in search of the next narrative and what will be the next big thing to propel Bitcoin even further.
In the past, it has often been these narratives that have not only given value to Bitcoin and confidence to its investors but also provided speculation on just how far these catalysts could send Bitcoin’s price in the future.
Past Narratives
Peer-Peer Cash & Free from Government Control
When Bitcoin was first created it was intended to be a form of peer-to-peer cash that could be transferred between users quickly and cheaply without the need of a 3rd party. Having complete and full control over your own money and being free from government control was the narrative that struck lightning in a bottle. This is what caught the imagination of so many and attracted them to Bitcoin.
Digital Gold
However, as time went on Bitcoin would continue to evolve and so would its narratives. As usage on the network increased, fees began to increase as well. Soon the Bitcoin narrative would change to it being Digital Gold. The hardest form of money that the world had ever seen.
With Bitcoin, you didn’t need to worry about its value being taken away by inflation or money printing. The creation of Bitcoin had a set schedule that would cut its inflation in half every 4 years until it became zero. There would never be more than 21 million Bitcoins in existence.
This fact alone would be enough to set it above gold, but then you need to take into account how much more transferrable it is. Since it is digital it can be taken anywhere at any time. It would take a room to store $1 billion worth of gold, but you could store the same amount of Bitcoin in something as small as a USB drive.
People called it the gold of the new age and predicted that it would someday significantly overtake Gold’s market value, which again led to some extremely bullish price predictions being made.
The Bitcoin ETF
The narrative of the last several years has been the Bitcoin ETF. For years the US continued to reject BTC ETF applications to the point that the ETF eventually became mythical in the space. Many debated whether it would ever be approved.
However, finally after years of speculation BlackRock, (the world’s largest asset manager) shocked everyone and applied for a spot Bitcoin ETF. BlackRock is one of the most powerful companies in the world. When they speak or take action, others are paying close attention. Perhaps they knew something that everyone else didn’t, or maybe they had the power to influence the SEC. But soon after BlackRock filed their application, the tide began to turn to the point where the ETF was eventually approved.
This changed the game forever.
This opened the investment gates for Bitcoin that had previously been closed. Allowing Wall Street to finally enter the market, and this will continue to shake up the Bitcoin market in the future. This will be the first bull cycle with spot ETF and no one knows what will happen next. The most logical conclusion is that once the market becomes more bullish, this will allow Bitcoin’s price to soar much further than even the most bullish of us can imagine.
THE FUTURE BITCOIN NARRATIVES
If you have been paying attention to Bitcoin recently you will have noticed 2 narratives currently taking place.
The first is that Everything is coming back to Bitcoin.
Everything Comes Back to Bitcoin
The hard truth is that after Bitcoin’s narrative as Digital Gold began to take over, the community became very reluctant to ever change the Bitcoin code. Because of that, development on improving, experimenting, and developing Bitcoin essentially came to a halt.
This led to a mass exodus of developers to leave Bitcoin and build on Ethereum, Solana, and other blockchains.
However that all began to change 2 years ago with the implementation of Bitcoin ordinals.
With ordinals, NFTs were now possible on Bitcoin. Then BRC20 allowed tokens to be minted on Bitcoin as well. These two changes alone caused the entire perspective of what is possible on Bitcoin to begin to change. The impossible had suddenly become possible. Lightning has progressed quite a bit as well during the last few years allowing extremely fast and cheap transactions.
Developers follow the money and the excitement. For the first time in quite a while, Bitcoin had both of these. Many Bitcoiners have claimed that smart contracts such as Ethereum were essentially testnets for Bitcoin. That Bitocin would eventually take the best things from each of these testnets and bring them back to Bitcoin.
The thing that you have to remember is that originally nearly all development in crypto was happening on Bitcoin. It was thought that you didn’t need other cryptocurrencies. This will be a return to that. If transactions are nearly instant and free, and you are also able to perform DeFi just like on other blockchains. Overnight the use case for nearly all other blockchains would disappear. They only exist because at the time Bitcoin couldn’t perform those particular tasks.
Nation-State Adoption & Game Theory
You may have heard that the phrase, Bitcoin was designed to pump. There is a lot of truth to that statement.
With it being the strongest form of money, has a set inflation schedule, is inconfiscatable, and has a maximum of 21 million coins. If it ever went mainstream, the high demand in combination with the extremely low price always meant the price would go parabolic.
That Bitcoin game theory is about to go worldwide. The first development that took the world by storm was when El Salvador announced that they would be making Bitcoin legal tender in their country. The bigger story was that Donald Trump announced he would make a National Bitcoin Reserve if elected president.
Love him or hate him, the fact that Bitcoin has become a huge topic in the US election is something that shouldn’t be underestimated. You can bet that after Trump announced his plan, there were several other countries around the world discussing what their Bitcoin plan would be.
Whether or not Trump is elected, it is clear that the world is moving towards Bitcoin. It might not be today, tomorrow, this year, or even next. But sooner than later a powerful country is going to make their Bitcoin play. If it is a country like the US, you aren’t ready for how bullish this market is about to become. The domino blocks of Bitcoin adoption are beginning to fall and the momentum cannot be stopped.
One thing is for certain, the future looks very bright for Bitcoin, and if you have been investing in it throughout the years, you will likely be able to change your life financially.
How about you? What do you think the Bitcoin narrative of the future is?
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As always, thank you for reading!
