Should You Really Care About Bitcoin’s Price If You’re Not an Accredited Investor?
Do you care about Apple’s stock price when you’re buying a new iPhone? Didn’t think so. If anything, I am pretty confident that you would have to Google it to know what the Apple stock price is at the moment. Simply, it’s because you don’t really care about the stock price, but you care about the product itself.
Is the product’s price affected by the stock’s price at the time you purchase that so wanted Made-In-China American smartphone? Well excepting strategic long-term scenarios, not really. I mean an iPhone wouldn’t suddenly cost less because the stock price of Apple went down.
So why are crypto investors crying every time Bitcoin‘s price per unit recesses? I’ll tell you why: Because they’re amateurs, that have no clue what blockchain is about, how it works, why it works, and what is the real potential behind it.
Most of these self-proclaimed investors care as far as they can sleep on the idea of making millions of dollars with their hard-earned 1 dollar investment, because if they knew even the basics of investing principles, they should be actually happy when Bitcoin’s price goes down, as it gives you space to purchase more of your beloved digital asset.
And again, why are all these cry-baby investors even allowed to have a say in whether Bitcoin is viable or not, based on…yes, its price?
The short answer is: because it makes money to serious and accredited investors who drink their coffee, eat their donut, and buy more laughing on the fact everyone is like “OMG Bitcoin just fell 10%”.
Why we shouldn’t really focus on the price per BTC here
There are a series of talks in the deep crypto scene, discussing the possibility of Bitcoin being a safe-haven during uncertain economic periods, such as the ongoing trade-wars between the US and China, or a potential global financial crisis of the likes of the 2008 meltdown.
Sure, there are various opinions generated from central banks, financial regulators, government officials, and accredited investing firms, debating on the matter, and we can say it is yet unclear whether Bitcoin could be trusted as a store of value over long-term.
Popular opinions include that of Dan Tapiero’s, who believes whoever Nakamoto was, he created Bitcoin influenced by the global financial crisis of 2008, and therefore, there is a long-term plan for Bitcoin, we just might have not spotted yet.
Truth is, mathematically speaking, if we simulate a global financial crisis, which many believe is just around the corner, Bitcoin would be your best bet for the following simple reasons:
You are a central bank that shortens by 90%. You either sell what’s left or move on crying. You state bankruptcy, and you’re left with physical resources you distribute between stakeholders. You invest in gold and patiently wait until you find the right moment to translate that gold back into stock, fiat, or whatever else. Or…
You invest in Bitcoin, regardless of its price per BTC, which, by the way, will be only pumping in a period of crisis, as you’re not the only bank to join the train, and you continue operating normally.
You don’t have to wait till next morning 9am to move your assets. You don’t have to wait until things settle, with a pile of shiny rocks in your closet, waiting to be exchanged for something Bitcoin already is. You accept and perform payments normally, and spherically, the market doesn’t freeze.
So in a nutshell, Bitcoin is not just a store of value, a safe-haven or whatever fancy terminology you want to use to describe it’s functionality, but it’s rather a fully functioning alternative marketplace that never sleeps, doesn’t care about the “price per unit”, and will continue operating whether one Bitcoin costs 1 euro or 1 million euro.
It’s a machine. A network of trust, undeniably necessary in periods of economic uncertainty, as when you shift into Bitcoin, you don’t have to wait until you’re able to move your investment into something movable, simply because Bitcoin is ever-moving to begin with.
So, let’s us grab some popcorn, a handful of digital wallets, and let’s wait for the next global financial recession like we would wait for the next Matrix movie.
Remember that during the last global economic disaster, people, governments and legal entities made the fortunes they presently have nowadays, by buying hotels, malls, and yachts in 1/10 of their prices, which would be later sold back to their respective owners in x10 of the investment, when the period of “economic uncertainty” is over.
Same as in a financial market, when the global economy is down, you don’t panic, you actually buy. Yet, when Bitcoin is dipping, you keep crying like they took your candy out of your hand. I mean, what did you expect? Would you be ok with Bitcoin raising suddenly to $100k per piece? Would you buy then?
Disclaimer: You should be aware that I am generally a Bitcoin pessimist and not a big fan of its code, nevertheless, this opinion article is about investing psychology, and Bitcoin is a good example of how the mass behaves. This is not financial advice in any case.