The meaningful shift from Bitcoin maximalism to Bitcoin realism
Bitcoin maximalists were wrong. Bitcoin is not the only cryptocurrency, there are many other cryptocurrencies with different goals in mind and each one of them has its own merits.
The “bitcoin maximalist list” is a list of people who are bitcoin maximalists. The meaning of the word, “maximalism,” is to be extreme in your beliefs and opinions. Bitcoin maximalists believe that bitcoin will eventually become worthless and that only then, will it reach its maximum potential.
At one point, all cryptocurrencies were traded against Bitcoin (BTC). When they observed assuring tokenomics or promising buzz, speculators delved into other currencies, but Bitcoin was their preferred settlement currency.
Everything has changed. In the cryptocurrency market, stablecoins today make up a $150 billion pillar. Perpetual futures exaggerate market emotion and, in many cases, control price behavior. Much more money has recently entered the market, notably from institutional investors, with just a little influence on Bitcoin’s price. As a result, several erstwhile bulls are now dismissing Bitcoin as dull.
Is Bitcoin maximalism coming to an end? Most likely not. However, additional realism may be required.
How can investors protect themselves against inflation using gold, bitcoin, or DeFi?
Bitcoin among the memes
New digital-native brands like the nonfungible token (NFT) project Bored Ape Yacht Club (BAYC) may climb alongside Bitcoin in the digital asset sector, much as Disney’s stock can. The BAYC symbolizes a new method to brand creation, much as investors would be prepared to pay top dollar for the rights to a nearly century-old Mickey Mouse. It could even work.
However, it’s possible that it won’t. It’s speculative, which is appealing to traders.
The volatility of ApeCoin (APE) differs from that of Bitcoin nowadays. Bitcoin now trades on a macroeconomic background, while apes chase brand hype. It’s safe to say that Bitcoin is establishing itself as a key holding, not only among digital asset investors, but even among certain bold institutional investors who traditionally avoid risk. Bitcoin is the market’s established base layer, but can it also serve as the ultimate reserve asset?
To be honest, sovereign wealth funds aren’t starting to invest in Ripple (XRP), Shiba Inu (SHIB), or Bitcoin Cash (BCH). They’re also not being picked up by any big retirement funds. Realists believe Bitcoin stands out from its competitors because it has shown to be durable in the face of many crises and because it is really decentralized and outside the power of any one government.
Bitcoin’s supremacy in the “payments” sector is evident, with a market value of $750 billion dwarfing the next in line. At the same way, we can’t dismiss the growth of other “cryptocurrencies” as a worthless counter-measure to Bitcoin just because they aren’t Bitcoin. Realism facilitates communication and comprehension, which is the primary motivator of adoption.
For Baby Boomers, Bitcoin
Bitcoin is only dull in terms of price for people who enjoy the adrenaline rush of speculative trading. Bitcoin is rising in popularity as people’s attention shifts elsewhere, which might lead to even greater growth.
Haven’t we seen the debate around Bitcoin grow so much more mature and focused on basic principles as YouTube influencers sprint from farming and breeding to staking and minting?
In 2021, we did not get to witness a $100,000 Bitcoin. But, if we haven’t even hit 5% worldwide acceptance yet, do we really need to be that greedy? Yes, Bitcoin, like other assets, may gain from human greed and speculation in a less dull world, but those same impulses can cause any asset value to drop.
Is it a boom or bust? Is it possible for Bitcoin to reach $100,000 in 2022?
Bitcoin requires patience.
A Bitcoin maximalist often aspires to have enough Bitcoin to live comfortably in time and space. They presumably also desire a more equitable and just economy, which is why they embrace Bitcoin in the first place. A maximalist should also believe that having billions of individuals possessing a little amount of Bitcoin is preferable than having a few million holding all of it.
Indeed, buy-the-dip opportunities are beneficial not just to those who are most devoted to Bitcoin, but they also aid in wider dispersion by attracting new recruits. That’s great news.
In this regard, it’s useful to consider how much Bitcoin you should possess or strive for. Then take appropriate action.
Most ardent Bitcoin supporters, like Michael Saylor, spent months or years to reach their inspired conclusions. Ray Dalio, a well-known investor, is continuously developing. Most politicians have no idea what Bitcoin is, and I’m sure El Salvador’s President Nayib Bukele, who declared Bitcoin legal money in his nation, becomes anxious when he looks at the charts.
El Salvador’s Bitcoin Law: Understanding Government Intervention Alternatives
Anyone entering the crypto market for the first time because a cute puppy or pixelated ape presented itself as a hyper-sound asset will need a significant amount of time. However, Bitcoin maximalism isn’t always the ultimate consequence.
Because Bitcoin is a fundamental holding, most players in the sector are already familiar with it. Most digital asset investors know it’s prudent to have “some Bitcoin” based on the game theory playing out across developing economies and in the context of the present sanctions regime, as well as inflation.
Some argue that Bitcoin maximalists are dangerous. However, there are poisonous individuals around. Furthermore, Bitcoin maximalists excel at reciting basic concepts, which helps to ground the discussion. Bitcoin doesn’t require you; you need Bitcoin, they say. True? True or not, the point is that you should not invest your life savings in a memecoin because the community is so wonderful to you.
Let’s be honest. The world is struggling with currency debasement, Bitcoin mining can and does serve environmental purposes, the US and its allies did freeze Russian foreign assets, the future is deeply digital, inflation is not temporary, and keeping Bitcoin in any of these contexts makes perfect sense.
Bear markets reveal the true nature of programs and standards. Smooth Love Potion (SLP) from Axie Infinity is now trading at nearly 40 times its all-time high. Bitcoin is nearly two-thirds of the way down from its all-time high. It would not be uncommon or unusual to breach $69,000 sooner rather than later.
Finally, banks “coming into Bitcoin” is a bit of an oxymoron, and although some may argue that Bitcoin doesn’t need any of that, it’s equally reasonable to claim that Bitcoin’s integration into global finance and existing infrastructure strengthens the asset by bringing in more long-term investors.
Everyone should be a realist, rather than a Bitcoin maximalist.
This post makes no investment recommendations or advice. Every investing and trading choice has risk, therefore readers should do their own research before making a decision.
The author’s views, ideas, and opinions are entirely his or her own and do not necessarily reflect or represent those of Cointelegraph.
Ben Caselin is the head of research and strategy of AAX, the crypto exchange that will be powered by LSEG Technology from the London Stock Exchange Group. Ben generates insights into Bitcoin and decentralized finance and offers strategic direction at AAX, with a background in creative arts, social research, and fintech. He is also a member of the Global Digital Finance (GDF) working group, a prominent industry organization devoted to accelerating the use of digital finance.
“Bitcoin maximalist reddit” is a website that is dedicated to Bitcoin maximalism. The website has been around for quite some time and has seen a shift in the meaning of “maximalism”. Reference: bitcoin maximalist reddit.