The fall of Bitcoin's price brought out the worst in many people.
Whales that tried to dump the price did so because of failing fiat. Their stocks were falling faster than you could say uncle. And uncle is what they said.
Whenever people get scared, they want money in their bank accounts. Cash in their hand. So that they can buy things they don't need to ease the pain.
Hedge fund managers also witnessed high levels of liquidations and nothing happened to hedge funds yet. People are scared that something WILL happen, so they're "planning" for it.
Some people actually liquidated their 401k plans. Yes. People actually destroyed their retirement. They felt that they were stopping it from any further damage, but if the damage has already been done, then why bother?
Those people have wasted years of their lives, and had their lives ruined by just one bad day. One bad day in the market.
When the going gets tough, people love to be safe. They love to be out of the market and on the sidelines, saying "Wow. I sure dodged a bullet with that one".
That's what makes them puny investors. Their constant want to be safe and secure robs them of life changing opportunities, and they just move on to blame it on their lack of skills or the government. Pity.
However, the asset that was supposed to be a store of value also plummeted in price.
Why? You ask.
Because the investors in Bitcoin got scared. And when people get scared, they do stupid things. Like give away a whole bitcoin for just 3650 dollars, when we all know it's worth more than that.
But in all this, one thing has remained constant.
Bitcoin still remains a wonderful store of value. Just not for fiat.
Recall that no one has been able to put any other value on Bitcoin, apart from a fiat value.
Fiat currency has no value in itself. It has neither intrinsic, nor extrinsic value. It is only given value by the faith, or "fiat" that people put in it that it will be able to hold it's purchasing power over time.(We can all give Nixon a big hand for that part)
But what is this "intrinsic" value I keep talking about?
Simply put, intrinsic value is value that something has in itself. That means that it can either be used as a store of value, or as something of value itself.
Like gold. Gold is a means of exchange. I could buy something from you and pay in gold. Why would you collect the gold?
Because you know the value of the gold in monetary terms.
The thing that allows you to collect the gold as a means of payment is its intrinsic value. And my giving it to you as a means of exchange is exercising its extrinsic value.
So what types of value does Bitcoin have?
Well, mostly intrinsic. Because no one has used Bitcoin as an exchange means since Pizza day. Every single exchange that has been made with bitcoin has been made with the purpose of turning it to fiat. No one has ever bought a house for one bitcoin, or a car for two bitcoin. It's mostly intrinsic value at this point.
But that's the kind of value that matters to investors. Traders only care about extrinsic or nominal value. That's why they panic and sell when the prices go down. They want to protect their valueless fiat so bad that they give away their valuable crypto for stupid prices.
So yes, bitcoin still remains a solid store of value. And it's super cheap now.
You know what to do.
