Bitcoin is the New Crypto Narrative
What goes around, comes around. What fades away, eventually comes back. The narratives in crypto are always changing and evolving. Going from fundamentals to the best tech, the newest features, ways to earn passive income, gaming, and the list goes on. Some of the narratives that we have seen in recent years are ICOs, DeFi, Meme coins, NFTs, metaverses, move-to-earn, and gaming.
In recent years the most hyped narratives have been what caused most mainstream people to enter this market. It has almost always been a new sector of the market that promises to make them rich. However, as cliche as it may sound, this time could be different. Maybe this time the narrative in crypto will return to the real origin of this industry and why we first became so enamored with it. Perhaps the next crypto narrative will be a return to Bitcoin and its core ethos.
Bitcoin. The original cryptocurrency that created this whole market. If it wasn’t for BTC, we might not even be talking about crypto today. It’s ranked number one in terms of market cap and has never been dethroned. It’s the most pristine asset in this market and is what everything else is compared to. However, somewhere along the way we got caught up in the newest trends, latest tech, and newest features. During this time many people in this market forgot why Bitcoin is so important and why we need to own it.
Bitcoin isn’t about DeFi, NFTs, fast transactions, fast upgrades, or any of that. While they very well could come in the future. Bitcoin is about being the most decentralized and secure blockchain, being able to take self-custody. Trustless. Having no counter-party risk. Not needing to rely on anyone else to have rights over your money and perform transactions. Money that becomes stronger over time and actually rewards you for saving. A currency that gives you freedom from corrupt organizations or governments trying to control you. These are the core fundamentals of Bitcoin that so many people have forgotten just how important they are, but now they are starting to remember.
All it took was a bank run and the threat of a complete banking collapse in the US for people to realize that they actually don’t own the money that they have in the bank. We have all been lied to for decades into believing that banks are the safest place to keep your money and don’t present any risk. The truth is that when you are depositing money into the bank, you are actually lending it to them. With the hope that they will return it to you when requested. However, we are learning that it is simply a request, and there is absolutely no guarantee that it will happen. There is no worse feeling than having your complete life savings in a bank, seeing a bank run, the bank closing and you having no possible way to get your money.
This is why Bitcoin was created.
The truth is that this was exactly why Bitcoin was created. Born during the financial crisis of 2008, when banks were going under and being bailed out left and right. The trust in the banks and money had been lost. That was more than a decade ago and people have already forgotten. The same situation is playing out today.
The difference between then and now is that not only do we have Bitcoin, but it has matured significantly over the last 13 years. We now have an escape from the archaic banking system.
The best way to think about Bitcoin is to consider it to be your savings account. Putting your disposable income in it to save and appreciate as time goes by. A savings account that can’t be controlled by banks, the government, or even stolen if stored properly.
During the last few days while the financial world was panicking due to banks beginning to collapse, Bitcoin’s price went up significantly. People woke up to the core principles of Bitcoin during this time. Sometimes you don’t understand why something is important or why you need it until it is too late. A lot of people had their eyes opened up to Bitcoin this week.
If the crypto narrative returns to Bitcoin what should we expect to happen?
The truth is that there aren’t many Bitcoin left. With a max supply of 21 million BTC, millions of them are already being lost forever. Then taking into account that the next halving is coming up in less than a year and during the last year, more than 70% of BTC hasn’t moved. People are buying and holding, we are running out of sellers. Eventually, there will be a supply and demand shock, and the price will explode upward.
This will cause Bitcoin's dominance in the crypto market to increase and could cause a large exit from altcoins. During the last week the “most-trusted” stablecoins, USDC, de-pegged significantly for several days. Once again people learned that even the “safest” of stablecoins holds high counter-party risk. With all of the problems that stablecoins have dealt with during the last year with the USDC situation included, we have to begin wondering if that is the best way to save your money. If this Bitcoin narrative comes true, more and more people will choose to save their money in BTC and view it as their safe form of savings.
How about you? Do you think the next crypto narrative will be a return to Bitcoin?
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