If Bitcoin Is So Valuable, Why Is It Down So Much This Year?
If a no-coiner friend or relative asked you this question, how would you answer?
It is worth bearing in mind that so far this year, the Bitcoin price (trading around $16,430 as of 8:50 a.m. UTC on 25 November 2022), which reached its all-time high of around $69,044 on 10 November 2022, is down roughly 65% in the year-to-date period.
On Thursday (22 November 2022), pseudonymous crypto market commentator “Satoshi Stacker” (@StackerSatoshi) asked his over 177K Twitter followers how they would answer this question if their dad, for example, asked this question at the Thanksgiving dinner:
Your dad at the dinner: "So if #Bitcoin is so valuable, then why has it dropped 70% this year?" 😈— Satoshi Stacker (@StackerSatoshi) November 24, 2022
👇🏻 WHAT'S YOUR ANSWER? 👇🏻
Here are a few of the best replies:
- “Because energy is more scarce than Bitcoin.“
- “It didn’t. 1 bitcoin still equals 1 bitcoin. It has lost some popularity, but it’s more decentralized, secure, immutable, censorship resistant, & scarce than ever before. Are you going to base the value of something by what it actually is, or only by its popularity?“
- “If a 50” TV price drops 75% on Black Friday what do you do? There’s a difference between price and value. If you understand the value of Bitcoin (think of prime real estate that no one can take from you) you’ll realise that this is the greatest opportunity you’ve ever seen.“
- “Lucid -80% Snap -79% Shopify -77% Doordash -69% Meta -67% Credit Suisse -61% Zoom -60% Paypal -57% Draft Kings -57% Black and Decker -57% I could go on and on ….“
Yesterday, Michael Saylor, Co-Founder and Executive Chairman at business intelligence software company MicroStrategy Inc. (Nasdaq: MSTR), tweeted about how he explains Bitcoin at Thanksgiving dinners:
Me explaining #Bitcoin at Thanksgiving. pic.twitter.com/N6cuEiu3Ri— Michael Saylor⚡️ (@saylor) November 24, 2022