The 25% Bitcoin Price Crash Unearths The Haters
The Bitcoin price crashed yesterday, unearthing many of Bitcoin’s biggest haters as they regenerated their cognitive bias to help promote their narrative.
Bitcoin (BTC) had its biggest price crash since March 2020 yesterday as the leading cryptocurrency dropped 25% from over $41,000 to just over $30,000.
And while the haters self-exhumed to pounce and help them and their agenda gain some much needed limelight, the fact is the crash was healthy and expected.
Haters Rejuvenated As Bitcoin Price Crashes
The Bitcoin price crashed yesterday, and of course the haters were quick to come out of their tombs and pounce.
Dallas Mavericks owner Mark Cuban likened Bitcoin to the Internet stock bubble of the late 1990s.
However, Cuban, who has recently been overly critical, appeared to be taking a more bullish stance on Bitcoin, even if he did liken it to a bubble.
The Shark Tank investor said he now expects Bitcoin and a few other cryptocurrencies to mirror the companies built during dot-com era such as Amazon and eBay, and ‘survive the bubble and thrive afterwards.’
Cuban said he expected fortunes to be made for those that can stomach the market, but for those that can’t, he expects big losses.
‘Along the way many fortunes will be made and lost and we find out who has the stomach to HODL and who doesn’t,’ said Cuban. ‘My advice? Learn how to hedge.’
Not every perennial faultfinder was as complimentary about the Bitcoin market going forward, of course.
Bitcoin’s Biggest Haters Pray On The Price Crash
Mark Cuban’s comments quickly exhumed Gold nugget Peter Schiff who quickly shot down Bitcoin’s similarities with any of the dot-com companies, claiming they had real value unlike Bitcoin.
‘None of the cryptos have any real value so there will be no winners. They will all lose,’ said the declining boomer, who has a point with all cryptos, but one.
Of course, Peter Schiff used everything to help promote his narrative, asking how something that drops so quickly can be considered ‘a safe-haven, a store of value, or a viable hedge against inflation.’
Schiff wasn’t looking at the big picture, yet again, and likened investing in Bitcoin to gambling and quickly promoted gold as a hedge against inflation.
What Schiff didn’t bring to surface, however, is that gold is down 10% from August highs, and in the same time period Bitcoin is up more than 300%.
Doom And Gloom All Around In Nouriel’s Chambers
Doctor Doom Nouriel Roubini was also quick to resurrect his hatred for anything Bitcoin.
As vocal as ever, the outspoken zombie economist claimed Bitcoin was the most manipulated ‘pseudo-asset in history human history,’ and its true value is less than zero because of the ‘massive polluting externalities of [Bitcoin] mining.’
What Nouriel forgot to uncover, however, was that Bitcoin is still up 85% this month, and the electricity it uses is helping drive renewable innovation.
Maybe Nouriel should realise Bitcoin also uses much less energy than the gold mining and recycling industries. And the fiat and banking system also dwarfs Bitcoin’s electricity consumption.
Haters Gonna Hate
Haters are gonna hate, and Peter Schiff and Nouriel Roubini are always going to pounce on anything they can to promote their narrative.
At least the price crash reinvigorated them and they finally found some peace, but it was short-lived.
Bitcoin rose from just over $4,000 in March 2020, to a recent high of $41,591 on Friday 8 January. It started rising a bit too quickly, so a 25% price crash was actually good for the Bitcoin price going forward.
The Bitcoin price duly bounced from its low of $30,569 and is now trading 18% higher at $36,071 at the time of writing, and with it hopefully the re-burial of Doctor Doom and Peter Shiff.
Author: Tommy Limpitlaw
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis. There are many companies that have a system for dollar cost averaging (DCA). This is a great way to buy Bitcoin, and is known in the space as ‘Stacking Sats’. Basically, what you do is set up small automatic, recurring payments to buy Bitcoin (or sats), and you DCA over time.
Can you lose money with Bitcoin?
You certainly can lose money on Bitcoin. Many new investors see the gains Bitcoin has made and expect it to always be so. But the truth is, Bitcoin’s gains have come from buying Bitcoin and holding on long term and riding the market. People expecting only gains, quickly lose faith when it crashes and lose money. The best way to avoid losing money is buy Bitcoin and hodl.
Where can I buy Bitcoin in South East Asia?
How much should I invest in Bitcoin?
Bitcoin is a new technology, and an asset that is finding its value. It has great potential, but the price is volatile, so investing in it should only be for those who understand it and have faith in it. And only invest as much as you can afford to lose.
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.