'Bitcoin is basically dead' - Bloomberg
Ok, so this linked article sights an opinion piece - which means it should be taken with a grain of salt.
The whole aim of an opinion piece is to write a hot take, and end up with a clickable title .
But that's not to say we should invalidate arguments we don't like, simply based on their format.
Instead, let's zoom out, weigh the points being made, and see if we can't sort through some of the noise:
Bitcoin has plunged more than 70% since November of last year.
This is true! But let's look at where we've come from. If you'd have bought BTC anytime before November of 2020, you'd still be in profit.
And the further we go back in time, the greater the gains.
E.g. buying in March of 2020 and holding until today would have gained you close to 4x returns - and a $1,000 investment in 2012 would now be worth ~1.4M.
Not bad!
Bitcoin’s difficult year has ruined any notion that it can be used to safeguard against inflation.
Also true (at least in the short term). Bitcoin has fallen with the rest of the stock market amidst inflation fears, when many have said it should do the exact opposite.
But let's zoom out again...over the past decade, it's estimated that the US dollar has lost 3x its value (i.e. $3 USD buys you what $1 USD bought you 10 years ago).
Whereas Bitcoin has increased 1400x (i.e. 1 BTC went from buying you a movie ticket, to a Hyundai).
(Which feels like a pretty decent long term hedge against inflation).
Bitcoin could drop further still.
Another great point!
But that's the nature of the beast - we're all familiar with these volatile patterns.
For those with long term conviction, the cheaper they can get it, the greater their potential returns come the next bull run.
...would you have preferred to have bought Bitcoin at $69K?
Warren Buffet doesn't like Bitcoin.
Wazzy B doesn't like a lot of things - that's his whole schtick! He only invests in a very narrow range of businesses; ones that he feels he can truly understand.
And his conviction is bullet proof in this approach. The man met and befriended Bill Gates in the early 90's and didn't buy Microsoft stock, because it wasn't in his wheelhouse.
(His support of Bitcoin would be more surprising than his lack of it).
Writing off Bitcoin's future potential, because of where it's come from, is like hating on Harry Styles because you didn't like One Direction.
Sure, 1D may not have been for you - but his music slaps now. Make peace with it.
Point is: There's always a balance to be struck; and heavily biased voices shouldn't be deemed right, just because they're the loudest.