Bitcoin will always be a derivative of the U.S digital dollar
Any hoarder of Bitcoin should always keep in mind that Bitcoin is a derivative of U.S digital dollars. It’s not a good or a bad thing, it’s just the reality of the situation. People were tired of having their digital dollars debased on their digital accounts banned by the establishments and because of it Bitcoin is currently flourishing and may continue to flourish as the governments become increasingly tyrannical.
When a person has cash on them, they’re decentralized, they can now spend their cash independent of the digital economy, well Bitcoin and cryptocurrencies take things a bit further, if the government bans you from transacting in their digital infrastructure Bitcoin and other crypto networks provide you with a way out.
Sure you might see a dip in your standard of living, but currently, bitcoin and other digital tokens still grant you the ability to exist in a market economy free of the government? Well yes and no, already China and India have declared war Bitcoin and as the world becomes more progressive it appears communists and socialist democracies are giving the Western Progressives a glimpse into how to ban crypto-currencies because after all, governments have a stronghold on the internet, even if you have a good VPN service provider you can still find yourself locked out of certain services and being that most crypto-wallets are welcoming government regulations none of us can say for certain what the future holds for crypto.
This however doesn’t make Bitcoin worthless, it’s just that you should be aware of its current limitations, it’s an alternative to the U.S digital dollar, but its value is still tied to the U.S dollar. I say this because the user should be aware that if the U.S fiat digital dollar goes to the toilet, the same fate might await Bitcoin, Bitcoin has no history without fiat money.
If the world is to return to a Gold and Silver even if it’s temporary, it’s unlikely that if the regulatory authority allows gold-based derivatives to form its own money independent of government, that bitcoin or any modern crypto won’t have much if any value, because after all as a derivative of the U.S digital dollar, bitcoin has no intrinsic value, it’s merely a confidence market. Although the bitcoin network is massive, we’ve all watched massive networks become obsolete in the past, once they’re imagined to be an inferior technology.
This is not to say that future profits can’t be made in Bitcoin, but if you’re making money from Bitcoin, you’d be wise to take out some profits and purchase something with intrinsic value.
Interesting times ahead!