Why Bitcoin Is on Its Last Stand
In a recent blog, two ECB members explain why Bitcoin is on the brink of collapse. Here’s why you need to pay attention.
It’s time to sell Bitcoin. After watching the price cascade from $69,000 to under $17,000, I read a moving piece, Bitcoin’s last stand, written by two ECB members and realized I’d been all wrong about Bitcoin. Worse, I have been manipulated by big Bitcoin investors who, according to the co-authors, “have the strongest incentives to keep the euphoria going.”
I feel foolish and embarrassed as I write this, knowing that I purchased Bitcoin when it peaked at $69,000 and continued buying it down to $17,000. Bitcoin is down 75% from an all-time high.
And now, Bitcoin is on its “Last Stand.” Being American, I am immediately reminded of Custer’s Last Stand at the Battle of the Little Bighorn. Unfortunately, that last stand didn’t work well for Custer and his companies. The Americans suffered a miserable defeat at the hands of the combined forces of multiple Native American tribes.
I don’t want to end up like Custer and his men. Instead, I want my portfolio to thrive and weather the upcoming recession. Luckily, we have central bankers like the ECB from around the world ready to fight this inflation battle that was unfairly thrust upon everyone.
So, I am selling my Bitcoin. I’ll probably wait for the central bank's digital currencies to come because I can use them for payments.
Why Bitcoin is facing its last stand
Ulrich Bindseil and Jurgen Schaaf do an excellent job breaking down Bitcoin's main issues. In the first section of the blog, they explain how Bitcoin is rarely used for legal transactions.
Bitcoin was created to overcome the existing monetary and financial system. In 2008, the pseudonymous Satoshi Nakamoto published the concept. Since then, Bitcoin has been marketed as a global decentralised digital currency. However, Bitcoin’s conceptual design and technological shortcomings make it questionable as a means of payment: real Bitcoin transactions are cumbersome, slow and expensive. Bitcoin has never been used to any significant extent for legal real-world transactions…