What may have been thought of as a fever dream by some, the continued vitality of bitcoin has investors more positive about future performance than ever.
In the early years of bitcoin, the idea that it may one day break a grand was something few genuinely believed would ever happen. In 2017, the thought that it would break $12,000 was highly anticipated, but many questioned the coin’s longevity. By 2018, the idea that the coin would ever again reach the unreal heights that had been seen the previous year seemed highly unlikely, and a long bear run was anticipated. By March 2020, few expected the coin to recover from the devastating lows that coronavirus brought, and in June many lamented the reality that the crypto would ever peak the long-seen sub $10k valuation it had seemingly stalled at.
Each pinnacle moment in the history of bitcoin has one common thread, seamlessly tying every self-imposed artificial hurdle to the next- and that’s the unwavering faith that hardcore hodlers have in the currency. Each time the price of the coin dips or swells, the full force of pessimistic internet critics come to prey on the FOMO of novice investors, who rush to exchanges like Bitvavo in order to have their fears quelled. Whispering that each turn in the coin’s valuation will be the last great sigh of life to come from it. However, so far, they’ve been proven wrong each time. And a new poll suggests that these critics may always fall short of the anticipatory psychic glory they’re looking for.
Running with the Bulls
Twitter polls taken throughout the summer of 2020 suggest that bitcoin users have something that bitcoin critics sorely lack- confidence in the coin’s endurance. In a Twitter poll taken in July by bitcoin backer Peter Schiff, nearly 58% of respondents said that they would take their bitcoin to their graves, before giving it up and selling under the then on-trend threshold of $10k.
Since the poll was taken, those that HODL was indeed rewarded as the coin jumped past the $10k mark to nestle near $12,000, where it still stands today. Giving credence to the idea that most serious bitcoin investors are in it for the long haul. Believing that the digital currency has a bullish future indeed. Which is a sentiment that is also echoed in the current holding patterns seen with the wealth distribution of the network? As fewer whale wallets (those with 100+ BTC in their vaults) are beginning to dwindle and smaller investors are starting to take control of the existing coins.
Going a step further, another Twitter proficient bitcoin star, Plan B, hosted a poll of his own- asking over 22,000 bitcoin users when they would sell off their holdings, should the price not increase sharply within the next few years. An astounding 72.1% said that they would ride the coin out to $0 if that’s what the market came to.
What It Says About Asset Value
So, what do Plan B followers believe this says about the assets inherent value? A number of different respondents gave their two cents when it came to defending their ride or die attitudes. Some suggest that another large bear run would only inspire them to scoop the dip and buy more of the coin. While others suggest that they’re vying for a more stable market so that the currency can become just that- an easily translatable alternative to fiat.
As it stands currently, the famous cryptocurrency is seen more as an asset than it is a currency. With many viewing the wild fluctuations in price as serious investment potential, meaning that prolonged bear runs only serve to give them time to gain capital and buy more bitcoin. Patiently hodling until the next [inevitable] price surge is seen.
While global adoption continues to steadily rise, as suggested by increasing numbers of global exchanges, wallet registration, and wealth distribution; there’s a genuine possibility that bitcoin could reasonably become the fiat of the future. Finding a niche value threshold and sticking to it.
Never Say Die
While we may be a long way off from the utopian future of fully decentralized economies and financial structures, bitcoin still offers its fearless defenders a lucrative investment opportunity, specifically for those playing the long game. Analysts say that the coin’s ROI (return on investment) between the years of 2015 and 2020 puts many traditional markets to shame.
Since 2015, the coin has seen nearly 3,500% ROI. Putting it at almost 70 times that of traditional assets. So, while we might not be doling out bitcoin to buy milk anytime soon, it is still arguably worthwhile to hope that the coin will continue to see long-term investors some genuine capital. An ambition that when taking a look at both the hard data and public sentiment, doesn’t seem all that fanciful.
Disclaimer: This is a paid post and should not be considered as news/advice.