Bitcoin's break up
Everyone is giddy about a potential 'Bitcoin decoupling,' here's why...
You know that feeling of excitement you get when a close friend breaks up with their dropkick douchebag of a boyfriend?
It's like a weight has been lifted from the shoulders of your social life.
All of a sudden you can drink a Bud Light, without Kevin silently scoffing at the fact that you're not drinking a micro-brewed IPA.
(Which, let's be honest, tend to taste like someone crumbled a stick of incense in them).
Bitcoiners get that same sense of excitement the moment there is any hint of Bitcoin decoupling from the stock market.
Here's what that means:
At the moment, when the stock market goes up or down, Bitcoin tends to follow. If Bitcoin were to decouple from (break up with) the stock, it'd be living its best life as an independent entity.
(I.e. It'd be hot girl summer, for Bitcoin).
Here's why that would be a good thing:
It could make Bitcoin a true safe haven for protecting your savings.
At the moment, there's a lot of fear in the markets, mostly due to inflation - and when there's fear in the market, people tend to sell off what they see as 'risky' assets.
Right now, tech stocks fall into that category for a lot of people, and many of them treat Bitcoin like a tech stock.
But in reality, Bitcoin has been built from the ground up to safeguard against inflation. Only 21 million BTC will ever be created (unlike cash which governments can print infinitely).
Which has seen Bitcoin (historically) grow in value over time, compared to cash, which has lost value ($20 doesn't buy you what it did a decade ago).
But because the market is still unable to see Bitcoin as a 'safe haven' in times like this, every time the stock market dips - traders tend to sell BTC along with it.
...but that might be starting to change.
Over the past week the stock market is down 1%, while Bitcoin is up 3% - and over the past three months, BTC is up 1%, while the stock market is down 3%.
This doesn't confirm anything just yet, but it's a good sign.
And that, dear reader, is why everyone is giddy about a potential Bitcoin decoupling.
