Bitcoiners need not fear — for those who have already determined that the bitcoin standard is the monetary policy for them, recent dips in nominal fiat value can only be good. You see, as determined in my previous article, “If You Don’t Buy Bitcoin You Can’t Be Rich,” fiat wealth is only as reliable as its issuance and issuer, of which neither has been reliable in every single case of fiat’s existence, most famously the U.S. Dollar.
So the only truly rich people in this world are people who accumulate and hold bitcoin, the only immutable currency in existence. Therefore, anyone who has accumulated bitcoin and held that bitcoin in 2021 is still richer than those who haven’t. The caveat here is the act of holding; selling bitcoin can certainly teach one a lesson denominated in fiat.
But this lesson should be quick to extract from the actual event of losing money; never sell your bitcoin. Riches, especially those guaranteed by bitcoin — not of the material kind but of independence and freedom — are a long-term acquisition. The act of HODLing is the only insulation to the volatility implied by the monetization from zero that bitcoin is currently experiencing.
So, while the extremes of bitcoin can be uncomfortable otherwise, if they’re treated as opportunities to accumulate the scarcist digital money in existence at a discount, sentiment can change. In addition, if one merely utilizes satoshis as their standard for how much value they have, HODLers will always slowly be getting richer.
For more information on why, in the long run, bitcoin will ascend beyond inflationary fiat currencies, I recommend Dylan Leclair’s “The Conclusion of the Long-Term Debt Cycle and the Rise of Bitcoin.”