Can Bitcoin really Come Back?
Is the Future Up or Down?
Hey What’s up Everyone, Thanks again for showing up today. Because you continue to show up, I will continue to show up for you as well. So today’s article is quite different. We are asking the question of whether or not there is a possible future for the upside for this new asset class. If you haven’t heard about Bitcoin, well now you have. What is Bitcoin you ask? I will quickly explain it briefly in the next paragraph. Alright so, let’s continue to work towards enhancing your future, and becoming STRONGER, SMARTER, and FASTER.
I would really appreciate it if you could Subscribe to my YouTube channel as well, and then share this with someone new. Thank you again, Have a great day, and read this over your morning coffee, afternoon lunch, or evening walk. New audio episodes for those who like to multi-task are coming soon. I will start reading this in audio format so its easier to digest for the ones like me, who prefer to listen than read.
Bitcoin is a digital form of money that operates independently of banks or governments. It's created and stored electronically and is based on a technology called blockchain, which makes it secure and transparent. People can buy, sell, or use it for various transactions online.
Even though Bitcoin's value has dropped a lot since 2021, many experts still think it has a good chance of succeeding. Here's why in simpler terms:
A while ago, during a big financial crisis, someone named Satoshi created Bitcoin because they saw problems with how banks were handling money. Since then, the amount of money the US owes compared to what it makes has gone up a lot. There are two ways to fix this: make the economy grow faster than the debt, or make less debt compared to the economy. But making the economy grow that much is really hard, and politicians don't like cutting spending because they want to get re-elected.
Also, a lot of people from the baby boomer generation are retiring, and the money they need for retirement comes from the younger people working today. But the younger generation has a harder time making money compared to the older generation.
All these things mean that the US will probably keep making more debt compared to its economy. So, how will they pay back all that debt? Well, because the US uses the US dollar as the world's main currency, they can just make more money to pay the debt. This makes the debt look smaller, but it's not really. Other countries that hold US debt end up losing out in this process.
So, what kinds of things could be good to have when this happens? The best assets are things that can grow in value and are not too common. Stocks are one option, but they haven't gone up much when you look at how much money is out there. Real estate can be good, but it's not easy to buy and sell. Starting a new business can work, but it's hard to do right.
Some people think that digital assets like Bitcoin could be a good choice. Bitcoin has some advantages over other assets. It's easy to move around, split into smaller parts, and prove that there's only a limited amount of it. Even though Bitcoin's price went down a bit when interest rates went up, the long-term trend still looks good because the US keeps making more money.
There are some signs that make people think more folks might start using Bitcoin. People are feeling less happy about the world, and trust in the government is really low. One reason for this might be that the government keeps making more money, which makes it harder for regular people to get ahead. When people feel like they're getting left behind, they might start looking for alternatives, like Bitcoin.
This could also happen on a bigger scale, with whole countries wanting to use something other than the US dollar. As the world becomes more digital, Bitcoin seems like a good choice because it's digital too.
So, in simple terms, some experts believe that Bitcoin has a good chance of doing well in the future because of problems with the US economy, growing distrust in the government, and the rise of digital technology.