Bitcoin is the future. We have only begun to see a small glimpse of its true potential. It has the ability to not only change your life financially but change the world. Pushing gold to the side and becoming the preferred wealth-preservation asset. Then taking it a step even further and over-taking the US dollar as the world reserve currency. This is the future that Bitcoin potentially has, and the future battles it will be having.
If you have been following my work for any length of time, you will know that I’m as optimistic as a person can possibly be about Bitcoin. Believing that all of those price target predictions will eventually come true, and mainstream adoption will happen. However, as bullish as I may be, it is critically important to always look at all possible scenarios. The ones in which Bitcoin could succeed, and also the obstacles it is facing.
Today we will be focusing on those obstacles. While Bitcoin may eventually reach that $1 million price tag, it definitely won’t be a smooth ride to that destination. In fact, it will be an extremely bumpy ride with many valleys along the way. Here are some of the bearish factors that Bitcoin could face.
One of the most bearish factors could possibly be the US government coming out fully against Bitcoin. While the US is only one country; it has the largest GDP and also the largest influence in the world. The US declaring Bitcoin enemy #1, would prove to be a very bearish scenario for Bitcoin that would result in several other countries doing the same.
They may not be able to flat-out ban Bitcoin and crypto. But, they can make it very inconvenient to use. Or even worse, they can drain the enthusiasm out of the market. Bitcoin’s biggest strength is the enthusiasm of the people in the market. If they would ever lose conviction, it could result in the end of Bitcoin.
Inner Bitcon Battling
Right now Bitcoin is going through a period of change where there is a real debate of what it means to be a Bitcoin. Should it be a buy-and-hold type of asset, or should we try to build things on top of it? This has caused a real battle to ensue within Bitcoin that could cause the ecosystem to split if something doesn’t happen soon.
As I mentioned before, Bitcon’s greatest strength is its supporters and enthusiasm. If that becomes split or broken, Bitcoin becomes much more susceptible.
Personally, I am a fan of the recent changes that have been happening to Bitcoin. It is better to have these debates and problems now, rather than 5 to 10 years later when Bitcoin has grown to an even larger price number and the stakes are even higher.
**Macro Market Collapse **
Finally, the last bearish factor in the near horizon for Bitcoin is the possible market collapse that we have all been hearing about. Inflation went through the roof, governments printed incredible amounts of money, national debts have gotten out of control, and people are having a difficult time just making ends meet.
We are on the brink of not only a market recession but possibly a great depression. Market experts have predicted it could be much worse than what we saw during the great depression in the 1930s.
If the market were to collapse, it would take down all financial assets with it, including Bitcoin. At that point, the asset most in demand would be cash and people would sell anything they could to get it. One of Bitcoin’s greatest strengths is how liquid it is. You can buy and sell 24/7/365. But in this scenario, it could result in Bitcoin selling off the fastest and also the hardest.
How about you? What are some reasons to be bearish about Bitcoin?
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