Bitcoin completes a year of decline, time to sell?

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It’s the end of November, usually the worst month of the bears’ first year (yes, there are more), when everything catches fire and panic sets in. But, don’t despair, there’s nothing we can do about it, just keep a cool head.

Of course some lost everything, FTX made sure of that, some others are almost there (Genesis), others collapsing for a long time (Luna), and all others deny being broke.

Everyone is sad after a year of beating, and bitcoin keeps falling. The fall won’t stop until it stops.

Soon to be December, usually the best time to buy during the first Christmas of the bear period. Doing Hodl (holding assets), however, is a matter of principle.

We should try to keep 50% of holdings in cryptocurrencies for as long as possible.

Our grandfathers were forced to give up their gold. Still, some of them managed to keep a few gold coins, unfortunately our mothers sold them to buy color TV.

The public now owns a minuscule share of gold ownership, with more in bank vaults and governments.

This story may repeat itself with bitcoin at some point in the future. Institutional investors will probably keep accumulating and at some point in the future they will own 80% of the total, as they did with everything else.

But for now, we have the option to hand it over to them and at what price. That’s hodl.

Cryptocurrencies were worth a combined $3 trillion at their peak, the entire UK GDP.

In the desperation here of the falling market, it’s very easy to forget about it. Everyone sees how big the price was and how small it is now, and despairs.

But that’s part of the game. Nakamoto designed bitcoin to emphasize the broader economy: manipulation of the money supply causes booms and busts.

The fact that we can’t price bitcoin is more interesting. We think this time maybe we’re on a fast track as we have these sophisticated investors and their tons of money that can be used to price in as it looks like the bear cleanup needs that end of November.

In the absence of complete information, it is of course strange to suggest any mathematical laws, a direct cause and effect, which is why we are advocating our point more on the principle of circumventing this.

Bitcoin is the only truly decentralized protocol that can be used as a medium of exchange digitally outside of banking and fiat.

This alone gives it immense value, and its volatility is not unique . The Turkish lira performed even worse than bitcoin. The Venezuelan peso is now in its sixth year of devastating hyperinflation. Lebanese money, Sri Lankan money, well, both are apparently worthless.

The pound sterling was worth two to the dollar, now it’s close to parity. Of course, this happened over the course of a decade, but in just one year the dollar gained a lot and many currencies lost a lot.

Bitcoin, at least, tends to be volatile in both directions, for incredible as it sounds. While fiat currency, by definition, is only directed downwards: devaluation of 2% per year.

And yet, in a way, many want bitcoin just to sell more expensive, which this is where Ponzi’s indictment of the premise that bitcoin has no value in itself comes from.

A global payments network with integrated accounting and clearing houses, where there is no manipulation at the level of the protocol, insofar as a bitcoin is always a bitcoin, it is an update of money.

Its value derives from its function, which we summarized above. It also has income, albeit in a different sense from debt-based activity, in that the desire or need to use bitcoin is directly reflected in its price, should there be an increase or decrease in that use.

While stocks are an artificial concept that, in theory, need not reflect a company’s profit or loss, bitcoin is more concrete in that it is both the product and the stock.

The currency, therefore, is used at least as an alternative and in some countries as an option to participate in global trade.

From there derives an entire ecosystem of services to facilitate this use, and some of these services they are not an upgrade, but the equivalent of putting a scanned piece of paper on a website and calling it the internet.

These are centralized databases that can be manipulated at will, much unlike bitcoin , the protocol.

Justin Sun, the founder of Tron, apparently wants to rescue one of them, FTX, although he seems to be talking more about buying its assets at bankruptcy prices, according to the WSJ.

Andrew Keys, who used to be Joseph Lubin’s second-in-command and is now at Darma Capital, wants to buy all Ethereum from Genesis.

All of them. Why not, they are on sale.

But there is despair. Keeping assets is very difficult now. Some very unlucky ones may even have to sell to cover the necessary expenses.

We warn you in these pages that the boom will come. But unfortunately, we cannot predict the future and what may come along the way.

We hope that not many are panicking, but we know that for some, there will be forced retention, and perhaps the FTX bankruptcy works just as well as MT Gox bankruptcy, because FTX has some assets.

This is crypto, a relentless game of survival on the frontiers of bringing raw value into real innovation.

And it’s because many of these innovations are something that’s never been done before that it’s taking some time, particularly with the second layers.

Little in cryptocurrencies is iteration, at this stage. Oddly enough, this gets the flak that there’s nothing cryptocurrency, or used to be. Well, it’s a tough thing, and unless you’re looking at pipelines, it’s not a very remarkable thing.

But, it’s time for them to say what they want. All we would say is don’t despair, even if it’s the despair stage. A desperation phase that has just begun, it may last a few months, but cryptos have always been like this.

It’s a relentless asset class because it’s so unlike anything else the world has ever seen .

It is a pure good, the most abstract abstraction for the concept of money. Designed like it’s in a lab to have all the cost-effective qualities you want, although it lacks scalability until now.

That makes it unique and so is power as well as control over measurement and storage of value.

A real ruler, which does not increase your centimeters or inches by what some committee says, but keeps them fixed.

So despair the all you want, just know that the history of cryptocurrencies has not fully begun and that, so far, the only way to beat this one is to keep going.