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It Sucks to Still Be a Bitcoin Critic. The Market Proved Them All Wrong (As Expected).

by | Oct 18, 2021 | Money

The bitcoin critics are hiding in their caves.

They’re afraid to come out. They told us bitcoin is a scam. They told us bitcoin is only used by drug dealers. They said bitcoin would go away, like catching a bad cold in March of last year.

Nope. They were wrong. The bitcoin critics published clickbait to get attention. None of it was fact. Not even a slightly possible reality.

Cryptocurrency is now a $2.4 trillion industry. The bitcoin price is returning to new all-time highs, as basic mathematics suggested 4 years ago, due to the halving in supply.

The nightmare of inflation happened as expected

The critics told us to trust the US dollar. “It will all be fine. Inflation is temporary.” Now we’ve experienced multiple months in a row of more than 5% inflation. And that’s if you believe the government’s calculation, which they admit has been ‘adjusted.’

None of this is an accident. 40% of all US dollars were created since March of 2020. Obviously when the government creates that much money out of thin air, it’s going to cause prices to rise. Makes sense. And that’s not a knife in the back to governments either.

They had to create lots of free money and give it to us. We couldn’t go to work. We were stuck at home to avoid a health crisis. The free money helped people survive. But people who didn’t need the money got it, too. Oopsie.

So what did everyday people do with any leftover money? They looked for another way to store the value they got for free, and the saved value they’d worked their face off to create — rather than stay stuck in a melting ice cube of dollars that have led to broken dreams.

Not all of the money went into bitcoin, obviously. People aren’t stupid. They put their money into multiple assets including stocks. But people who would normally invest in gold, as a way to combat high inflation, chose bitcoin instead. Smart. Gold is down by -6.05%. Bitcoin is up, I dunno???, 137%.

Nothing to see here kids.

It’s all going to zero they say. It’s nothing but magic internet money that has no intrinsic value. Except if you value escaping the hidden tax of inflation.

The SEC in America approved Bitcoin

Critics told us it would be banned. That the largest economy in the world would simply outlaw a $2.4 trillion technology and nobody would blink an eye. But even Biden has had plenty to say about it. He wants to tax bitcoin.

Okay. No problemo. Of course you get taxed if you make money.

No bitcoiner has an issue with tax.

In fact, Biden’s changes make bitcoin more legit, to the point where if you’re still a skeptic then there’s not much hope for you. If that’s you then Europe has a bunch of bonds that have negative returns. I guess you could buy them to feel safe if that helps you sleep at night in your house made of pillows so you don’t hurt yourself.

Then the SEC (US regulator) approved a bitcoin ETF. I’ll skip the jargon for the bitcoin skeptics on the sidelines. An ETF allows bitcoin to trade like normal assets such as stocks. Oh, and they approved two ETFs. Oh and the head of the SEC, Gary Gensler, taught blockchain at MIT. Small details. Nothing to see here people.

Politicians are saying “thank god for bitcoin”

Finally. Hooray. You can’t make this stuff up. It turns out when US government debt explodes to $28 trillion, because politicians simply printed money out of thin air to pay for a nation’s shopping list, it upsets people.

Thank god for bitcoin and other non-fiat currencies that transcends the irresponsibility of governments, including our own. — Senator Cynthia Lummis in a speech to the US Senate

Support for bitcoin is growing. One country, El Salvadore, has adopted bitcoin as their currency. We have their president tweeting “buy the dip.” On a less flamboyant note, he set up bitcoin mining rigs.

He heard the calls from the environmentalists about energy used to mine bitcoins, so he set up a way for his country to mine bitcoin using volcanos. Yes you heard me right. Volcano-powered bitcoin mining. That’s what an idea like bitcoin does. It sparks innovation, instead of what the bitcoin critics want, which is a world where we keep handing each other coke-stained US dollar bills to buy stuff.

I can still hear the bitcoin critics scream “that’s only one country!” Nope. A country called Brazil is voting on making Bitcoin legal tender there, too. The president of Paraguay wants to do it, too.

More countries will follow over time. Why? The world doesn’t want most trade to be done in US dollars because countries other than the US can’t create them out of thin air like America can.

Bitcoin makes sense when you open your mind.

It’s mania. It’s hype. It’s tulips.

Bitcoin is 13 years old. It’s not a toddler anymore. People said the same nasty lies about the internet in the early days. Now, here we are, the internet runs the world. If you refuse to use the internet, well, you’re probably in a retirement home. Otherwise you have to use it.

Bitcoin isn’t the end game. That’s what the critics get wrong. Bitcoin gave us blockchain, and blockchain is simply a re-plumbing of the internet. The internet gave us communication and information, but it didn’t give us a layer for trust or value. That’s what blockchain does.

Sending dollars from one side of the world through a complicated SWIFT banking system that excludes billions of people and takes days/weeks to complete isn’t logical anymore.

My job used to be sitting around watching these transactions. The network runs on an SMS system. The banks play SMS tag with each other for days. It’s a big joke. A circus. Why?

The bank wants to hold your money for as long as it can so they can play with it in the overnight markets and profit from it. When value transfer is instant and close to free, the bank ping pong of international money transfers ends. Finally. I don’t ever want to have to take another call from a customer that says “where’s my money b*tch?”

Technology requires value transfer and trust to be instantaneous. That’s what blockchain gives us thanks to bitcoin.

Trust technology to win, not bitcoin

They say “Bitcoin is a goner.” It’s only a matter of time. I guess the internet is going to get shut down, too, like they said in the 90s? Too dangerous. A bit too wild. Or is the real reason because they don’t understand it, so they let their fear mislead them?

You don’t need to be able to write lines of code to understand bitcoin. Just like you don’t need to have a degree in medicine to understand that cancer kills people. We trust experts and have third parties validate their claims. That’s what blockchain does.

It enables trust so any monkey with a laptop can run a node and check the truth without middlemen. Imagine what a world without middlemen can do. Bitcoin critics: that’s the big idea of bitcoin if you can get over your skepticism and leave your house made of pillows.

Everybody’s all in on bitcoin

  • PayPal does bitcoin
  • Stripe does bitcoin
  • JP Morgan does bitcoin
  • Visa does bitcoin
  • Mastercard does bitcoin
  • Wells Fargo does bitcoin
  • Goldman Sachs does bitcoin
  • Tesla does bitcoin
  • SpaceX does bitcoin
  • Substack does bitcoin
  • Twitter and Square do bitcoin

Are all these companies scams too? Of course not. They have spent years and a lot of money to attach their reputation to bitcoin. The only guy who’s not all in is the CEO of JP Morgan, Jamie Dimon. He’s already stinking rich and has to protect his ego. Let Twitter deal with him.

Bitcoin won’t save the world

Wait, what?

It’s obvious Americans won’t buy a packet of cookies with bitcoin. Neither will Aussies like me with green and gold running through our blood. The use case for bitcoin has morphed.

If you’re still saying bitcoin is a scam then you’re information is 5 years out of date. We’ve moved on from bitcoin. Bitcoin is one piece in a complex reinvention called Web 3.0. The thing about blockchain is that it will be invisible. Just like when you’re on a Zoom call you have no idea what computer, camera, or brand of underwear the other people use.

You don’t need to know. Blockchain already powers many parts of society. The harsh truth is, many of the bitcoin critics have probably used blockchain already and simply don’t know it. Or are too afraid to admit it.

Bitcoin is cool but it’s the dumbest version of blockchain to understand, which is why it’s the one thing the critics should understand. Bitcoin is simply a store of value. It’s used for large chunky transactions. It’s the base layer of the internet of value. But there are now loads of layers on top.

Bitcoin started out trying to be money. Now Bitcoin is more like pristine collateral that you use to secure a loan in case you don’t pay the debt back. Bitcoin is a guarantee. Bitcoin is proof of value, and therefore, in a transaction, proof of trust.

Most people won’t buy a cappuccino with bitcoin. That’s okay. That doesn’t make it a scam. It makes it an idea that has changed to find a better use case.

Bad news for bitcoin critics

Bitcoin is going to $100,000 USD. Sorry. We’re almost there. It’s basic supply and demand. A kid with a Gameboy could calculate the numbers.

So at this point critics can take a bow and end the “Bitcoin is dead show” or check themselves into rehab.

Saying bitcoin is a scam at this point is like saying the internet will get shut down. You look crazy. You look weirder than a doomsday prepper buying a trolly worth of can food for a nuclear war they say is ‘days away.’

Do you believe in gravity? Then believe in bitcoin. Bitcoin isn’t a scam. The people who say it is are trying to protect their fragile egos.

Bitcoin is no longer an idea. It’s accidentally part of society. Oopsie.

This article is for informational purposes only, it should not be considered financial, tax or legal advice. Consult a financial professional before making any major financial decisions.

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