The Bigger Picture Behind Bitcoin’s Latest Price Rebound

Bitcoin’s out-of-the-blue bounce over the $5,000 mark this month has prompted some predictable pontificating from price-obsessed people within and outside the cryptocurrency community.

Investors who are long-cryptocurrencies have gleefully pronounced that the Crypto Winter, which began when bitcoin’s bubble burst at the end of 2017, is now mercifully over. The most optimistic are forecasting a rerun of bitcoin’s fall 2015 bounce from its prior post-bubble collapse, which sent it not only back above its 2013 high of $1,150 but all the way to a December 2017 peak of $19,500.

At the same time, bitcoin skeptics have pointed to the seeming lack of fundamental news behind the price rise and declared it meaningless. Typical of the genre, Matt Novak at Gizmodo penned an angry screed titled “Bitcoin Surges 15% Overnight Because Nobody Learned Their Lesson After the Last Crash.”

One of Novak’s insights: “To be clear, bitcoin is absolutely worthless by any real measure. It’s fake money that’s about as practical to use in the real world as Monopoly bills.”

Readers won’t be surprised to hear that I disagree with Novak’s simplistic rant. But I’m also turned off by the knee-jerk cheerleading from crypto traders whenever bitcoin’s price bounces.

There’s something fundamentally wrong with reducing the measure of bitcoin’s worldwide importance to a price metric that’s denominated in a fiat currency that its advocates hope to replace. It pushes the debate into an inane all-or-nothing binary set of predictions: bitcoin is either going to zero or “to the moon.”

What matters is that 10 years after an unidentified software engineer created it, this decentralized system for recording sequences of transactions continues to do its job, block after block, with no authority in charge, no user able to alter past transactions, and no person or entity able to shut it down.

The more this goes on, the more it reinforces the powerful vision…

Source Link

Be the first to comment

Leave a Reply