There’s an intriguing tale that opens with a man plummeting from a 50-story building. As he falls, he finds solace in repeating: Juskiti Tut Va Bien [so far, so good]. This iconic line from the 1995 French film La Haine has stuck with me for years, offering comfort during anxious moments. It gives me this feeling that, considering how I’ve managed my difficulties in the past, I might just keep getting by.
Similarly, in the realm of Bitcoin, it feels like some are still riding that high. Despite numerous crashes and the bankruptcies of many crypto companies leading to significant financial losses for countless individuals, Bitcoin has this bizarre resilience. Each time it dips, it seems to bounce back, almost as if convincing its enthusiasts that it can never truly be down for good.
Yet, I think it’s important to tread lightly here. Bitcoin enthusiasts’ confidence, or the overconfidence they display, is troubling. This belief is, in my view, both unwarranted and reckless. Since it came into existence, Bitcoin’s trajectory hints at a potential downfall.
This week, signs of this reality became starkly visible. Bitcoin faced its steepest sell-off since last year, plummeting to below $60,000 on Friday, effectively erasing all gains from Trump’s 2024 election campaign and falling more than half from its peak of over $127,000 last October. Reports indicate that around $1.25 billion worth of Bitcoin was liquidated in just a single day.
The response to this turmoil has been a mix of despair and questionable coping mechanisms. Balaji Srinivasan, a noted figure in the crypto world, stated, “I have never been more bullish on cryptocurrencies.” His commentary reflects a belief that while short-term fluctuations are irrelevant, the larger picture shows a shift from traditional to coded systems.
On the other hand, some folks, like Michael Saylor, opt for humor amidst the chaos. He jokingly suggested gifting oneself Bitcoin for a birthday, reminding us of his substantial investment in it, holding over 713,000 BTC, roughly 3.4% of the total supply.
After a recent company announcement revealing a staggering $12.4 billion loss, Saylor encouraged support for the crypto industry, emphasizing the current presidency’s affinity for Bitcoin, considering the moves made by the current administration to integrate it into mainstream financial structures.
But here’s where it gets complicated for the crypto enthusiasts. The U.S. is closer than ever to having a president who champions Bitcoin. Despite establishing a “Strategic Bitcoin Reserve” and taking steps to include crypto in retirement accounts, the significant sell-off continues unabated. If Bitcoin can’t thrive now, when will it ever?
We might not have reached the final act of the Bitcoin saga yet. I can’t predict when it might falter completely. Speculation based on collective belief is tricky; Bitcoin may still surprise us yet (as of this writing, it had bounced back to around $69,000).
However, that unwavering faith seems to be waning. This week’s events indicate that the pool of “greater fools,” who have previously supported Bitcoin, might be diminishing. The illusion sustaining cryptocurrencies is starting to crumble. It’s worth pondering whether the foundations of value in things without intrinsic worth can sustain themselves. Ask yourself, will this notion hold true a century from now? Ultimately, as the saying goes, “It’s not how you fall that really matters, but how you land.” Jusku ich to va bien, jusku ich to va bien, jusku ich to va bien…
