Sorry Tyler: The USD Is Not The Reason Bitcoin Will Moon
It seems now the reason Bitcoin is going to moon is the weakening of the USD. This stems from the belief that Bitcoin is a commodity just like gold or silver, hence gains in price when the dollar weakens.
In this video I discuss why this is a false narrative and how one basic, yet essential, point is overlooked.
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The value of Bitcoin is the exponential network effect. The Bitcoin network upgrades itself for free and becomes greater than itself every year. The same cannot be said for Gold or other PM.
Yep Bitcoin is an animal of its own nature. There is no way to compare it to other assets, either commodities or other cryptocurrency.
Bitcoin has the name that sets it apart from every other crypto and does not operate based upon any of the known financial thoughts.
Like you said, few look at the technology effect.
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Summary:
In this video, the speaker discusses the dynamics of the crypto market and challenges some common beliefs in the crypto community, particularly regarding the relationship between Bitcoin's price and the US dollar. He criticizes the idea that a weaker dollar will drive Bitcoin's price higher, arguing that Bitcoin's value is more complex and not directly tied to the dollar's performance. The speaker emphasizes the increasing adoption of Bitcoin by institutions and individuals, highlighting its role as a store of value in the evolving cryptocurrency landscape. He also points out the diverse reasons why people are investing in Bitcoin, including as a hedge against weak fiat currencies and as a long-term investment.
Detailed Article:
The speaker starts by addressing what he perceives as misinformation and exaggerated claims in the cryptocurrency space, particularly from Bitcoin maximalists. He mentions figures like Peter Schiff, a vocal critic of Bitcoin, and argues against the notion that a weaker US dollar will inherently lead to a rise in Bitcoin's price. The speaker believes that the correlation between Bitcoin and commodities doesn't imply a direct link between Bitcoin's value and the US dollar's performance.
He asserts that Bitcoin's primary function is as a digital store of value, likening it to digital gold due to its limited supply and long-term hodling behavior by investors. Despite the stock-to-flow models often used to predict Bitcoin's price, he stresses that Bitcoin's value is not solely dependent on the movements of the US dollar or traditional commodities.
The speaker discusses the growing institutional interest in Bitcoin, exemplified by Fidelity's Bitcoin fund, and the global trend of individuals acquiring Bitcoin with various cryptocurrencies, not just US dollars. He argues that Bitcoin's dominance over the cryptocurrency market is due to its perceived value and potential for the future, especially in countries with unstable fiat currencies.
Moreover, the speaker touches on the role of cryptocurrency rewards, mining activities, NFTs, and game assets in driving the circulation of cryptocurrencies, with many ultimately being converted to Bitcoin. He highlights the significance of understanding the evolving crypto-economic landscape, emphasizing the unique dynamics of the cryptocurrency industry compared to traditional economics.
The video concludes with the speaker reiterating his belief in Bitcoin as a significant player in the cryptocurrency market, attributing its potential for further growth to its status as a store of value and the increasing adoption by both retail and institutional investors. He cautions against blindly following narratives predicting Bitcoin's price based solely on external factors like the US dollar's performance, emphasizing the complexity and multifaceted nature of Bitcoin's value proposition.