Let's face it; it's been a difficult week for bitcoiners and people who hold cryptocurrency in general. Around ten days ago bitcoin was still hovering around the mid $50,000's; everyone was anticipating that it would soon move upwards and make a new all-time high price. But then the FUD attacks against bitcoin came, and there was an onslaught of them.
First came the tweets from Elon Musk; who announced that Tesla would suspend accepting bitcoin as a payment for purchasing Tesla cars. He then went on to express great concern for the amount of energy that bitcoin mining required. Then came government FUD about requiring KYC for any transaction that was valued at $10,000 or higher. And finally came the final blow; that China was perhaps banning bitcoin or at the very least banning non-green bitcoin mining in the country. All this led the price of bitcoin to actually far under $30,000. For many new people in the bitcoin market; they felt that the sky was falling and that surely the bull market had officially come to an end.
The bull market isn't finished. But more importantly; I think that this bitcoin FUD will actually turn out to be a great thing for bitcoin. Years from now, this moment will be looked back on as the moment that bitcoin became the powerhouse that it is.
So let's discuss why this FUD is actually a good thing for bitcoin.
Yes that's right, I think this FUD will actually turn out to be an important and great moment for bitcoin. In the past bitcoin has gone to battle with many different type of FUD attacks, rivals and each time has come out as victorious. This time is no different. But, winning this time will send the price of bitcoin to unprecedented new highs.
Bitcoin has already won perhaps the most difficult battle it will ever face. This was to be accepted as a great store of value. Something that people value, understand its value, and would rather hold onto compared to any other fiat out there. With the events of last year, people and perhaps more importantly; businesses, have come to the conclusion that it is no longer in their best interests to own only fiat. They must own bitcoin. But for publicly traded companies, there is a lot of extra baggage that comes along with being publicly traded. You must set a good image, and live up to the expectations for shareholders. The first obstacle for bitcoin being adopted by these companies was of course to be seen as a great store of value, that would be preferable to holding fiat. Most would admit that is already the case.
But there is still the remaining issue of the energy usage of bitcoin that will keep many companies away. I won't argue for or against the amount of energy that is required by bitcoin; although personally, I am in the camp that it is energy very well used. Especially when you consider that America uses more electricity on Christmas lights each year, than some countries use the entire year. But that is a topic for a different day.
The point is that many of the top companies cannot be associated with something that is viewed as harmful for the environment. But it appears that things will begin to improve. After the whole Elon Must and energy FUD; Michael Taylor had a private meeting with Elon, and top people from various bitcoin mining companies. The aim was to make more the renewable information publicly available and also to strategize ways to make bitcoin mining for green energy.
While I don't necessarily agree or like that this meeting was private. If you have been in bitcoin since 2017; you will recall that there has been some heated drama in the past regarding to private bitcoin meetings discussing the future of bitcoin; ala the New York Agreement. But, even if you are against it, you can probably admit that this could have a huge affect on the future of bitcoin, and also the public image of this.
By having this meeting, by having bitcoin mining around the world become more green by using renewable energy. That would take away the remaining worry that many large companies have about investing into bitcoin. There would no longer be any backlash when they invest into the market.
A large player in the bitcoin market has stated that there is an enormously large wall of money from companies that is waiting to flood into the market after the whole energy situation comes to a solution. When that day comes; I believe we will see a daily green candle price spike, that no one will be ready for. It isn't a matter of if; just a matter of when.
While it is disappointing that bitcoin keeps having to deal with a constant onslaught of FUD recently. For bitcoin to reach the heights that we all want it to, it is important to have these battles. They are tests, and each time that bitcoin wins; bitcoin is in-fact becoming stronger. I would much rather have the attacks up-front and now, instead of later. I welcome it, and I'm looking forward to that green candle.
How about you? Can you see the positive that will come after dealing with this FUD? Or are you against it and just wish it would stop!?
As always, thank you for reading!