Think before you sell your Bitcoin – Bitcoin Magazine
This is an opinion piece by Robert Hall, a content creator and small business owner.
The last few months have not been good for the bitcoin price. Bitcoin continues to languish around $19,000 to $24,000 with no end in sight. Bear markets are a time when your convictions will be significantly tested. People new to bitcoin may find the financial pain too much and want to lose to cut their losses. Others will see the price of bitcoin go dormant and decide not to buy.
The seasoned HODLer will see this as a brilliant opportunity to buy as much bitcoin as they can because they understand that bitcoin is massively undervalued.
My question to anyone considering selling their bitcoin during this bear market is: What will you get back?
Trading bitcoin for dollars may seem like a good idea in the short term as the Federal Reserve continues to raise interest rates to fight the inflation it caused in the first place.
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You cut off your nose to ruminate on your face. The dollar will always weaken in the long term regardless of what the Federal Reserve says or does. A falling dollar is a feature of bitcoin, not a bug.
What seems like a better deal for you and your family? Keeping an asset ready to multiply by 100x over the next few decades, or something that will lose close to 100% of its value by design?
How long until the dollar collapses?
No one knows how long the US dollar can continue to be the world’s reserve currency, but one thing is certain: the dollar’s days are numbered. Politicians on both sides of the aisle abused America’s extraordinary role in the global economic system to print the money each country used for trade. How stupid do you have to be to mess something up like this?
Instead of being good financial managers, politicians used the dollar’s position as the world’s reserve currency to run up unsustainable debt that will never be repaid. Entitlements like Social Security and Medicare are the main drivers of our growing national debt and will only worsen as baby boomers age. These programs only exist because the dollar is the world’s reserve currency. The USA’s debt to GDP ratio is a staggering 127%. This amount of debt cannot continue forever. When you factor in higher interest rates on short-term debt that the government has to roll over, you begin to understand the dire situation we are in.
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The government’s only option is to kick the can down the road again and turn up the pressure. With inflation hitting a 40-year high, what happens when the money printer fires up? Higher inflation figures.
The US is at the beginning of a debt spiral that will end with the dollar becoming as worthless as other fiat currencies have done in the past. It may take five, 10 or 15 years for people to completely lose faith in the dollar, but it is happening and will come to an end within our lifetime.
The Democratic and Republican parties are reluctant to dismantle entitlement programs that drive the debt before they destroy the government’s balance sheet because they fear being voted out of office.
Talk about holiday preference thinking! They are willing to risk the complete bankruptcy of the United States because they do not want to lose power. That’s how strong the money printer’s effect is on the ordinary politician.
Save yourself while you can
This bear market may be the last time you can stack a significant amount of bitcoin before the masses notice something is wrong and scramble for the bitcoin lifeboat. If you have free cash flow, putting some of it into bitcoin will ensure your wealth is protected when crap hits the fan.
The best thing anyone new to Bitcoin can do is educate themselves about Bitcoin’s core value proposition. When it clicks, the whole world changes. It’s like having a veil lifted from your eyes and you can see the fiat world for what it is: corrupt, inept and greedy.
Bitcoin restores order in a chaotic world and will empower the world to make positive changes for humanity. So before you trade bitcoin for dollars, you need to understand what you are giving up in return. Do you still feel like it’s a fair trade?
This is a guest post by Robert Hall. Opinions expressed are entirely their own and do not necessarily reflect the opinions of BTC Inc. or Bitcoin Magazine.
