Ben Sinclair

November 25, 2022

Bitcoin and the bear market

I got into cryptocurrency in 2021 like many others. The excitement, the adrenaline rush and the hopes for riches out of nothing was all so alluring. Bitcoin to $100k! I definitely got caught up in the hype and to be honest it was a little bit of an escape from what I was dealing with.

I went deep down the rabbit hole and consumed hundreds if not a thousand hours of content as I'd rock my daughter to sleep or go for evening walks. I listened to Bitcoin maximalists, to investors with proven track records who stock picked, all the way to people that bought everything and anything they thought had potential.

I soon realized that Bitcoin was the best option based on my time preference and risk tolerance. It's hard to make a decision like this unless you put in the time.

The Bitcoin crowd soon had me on a crash course in economics and I learned how broken and debt ridden our financial system is. The current markets, wealth divide, inflation, foreign exchange and recessions that seem to hit every decade or so is a good indicator that something is not quite right.

Even with Bitcoin hovering around $16,000 USD right now, I'm as excited about it as ever. If anything, this period has taught me so many valuable lessons and has solidified some things in my mind for the future. 

As an aside, seeing so many crypto companies go under recently is actually not all bad, long-term anyway, as it should mean more regulation and protection for consumers.

Here's why I'm so keen on Bitcoin, even in a bear market. 

  • Bitcoin is completely decentralised - no one can control it.
  • Bitcoin has a fixed amount of 21 million coins - no one can print more. 
  • Bitcoin is international - there are no limitations on where you can send it.
  • Bitcoin is a store of value - due to the scarcity of it, it's going to increase in value over time.
  • Bitcoin is hope - especially for countries that get screwed over when it comes to currency.

The first two points are vital. No one can control it. No one can create more. Let's just pause for a second. This has NEVER, EVER happened before in the history of the world before Bitcoin. To me that is profound. These are vital factors as to why Bitcoin is so important.

Quick story, my wife found a guy recently in Russia who can create realistic depictions of a property she is about to develop. Right now he’s cut off from the world financially but can continue to function using Bitcoin. This is another great example of why Bitcoin is so powerful and has a hope and future.

Is there risk? Of course! No one should bet the farm on Bitcoin and everyone should diversify. But having a small part of my net worth in Bitcoin to me is a good idea.

As a final note, I think there are a lot of crypto projects that have a bright future. But which ones? I have no idea and my risk tolerance isn't high enough. Most are likely to fail and few will rise to the top. I'm not a Bitcoin maximalist, I'm just Bitcoin focused.

And remember, not your keys, not your crypto.

-Ben

About Ben Sinclair

Hey! I'm Ben. I’m a Christian, husband, father, son, friend, writing a book and also the CTO at Tithe.ly. I'm passionate about finance and technology. These writings are for me, however, maybe they’ll be interesting to others. Thanks for stopping by!