The headlines are screaming: Bitcoin surges! Long-term holders are loading up! Before you cozy up to this new bandwagon, let’s pull a big dose of realism back into the discussion. A 10% weekly gain for Bitcoin wouldn’t warrant much celebration. Rather, it sends an urgent and flashing yellow light across the dashboard of the US economy.

Is Bitcoin Really A Safe Haven?

Everybody’s discussing Bitcoin as a gold commodity, as a measure against inflation, as a hedge during the uncertain times. Is it really? Gold’s use as a store of value spans thousands of years. Bitcoin? It's barely a teenager.

The Long-Term Holder Realized Cap has increased, indicating a perception of long-term accumulation. The $10M leverage wipeout on open interest is a strong sign of price bottom. These are technical indicators, not guarantees. Remember that similar spike in September 2024? Although it came just before a price boom, history is never an indicator of future performance.

Think about it: Bitcoin's price swings are legendary. It’s less dependable vault than cryptocurrency rollercoaster. This volatility would disqualify it as an asset for most people who want safety and stability. Anyone looking to strike it rich in a hurry will be sorely disappointed.

Consider this: Why are people supposedly flocking to Bitcoin? For one, the article cites “worrying US economic data” as a backdrop. And so we ask ourselves, is Bitcoin’s ascent really just a function of how amazing Bitcoin is? Or is it really just folks giving up hope on the regular, old financial system?

Government Intervention Fuels The Fire

Here's where the unexpected connection comes in. Consider what’s been going on in the US economy the last several years. Trillions in stimulus packages. Near-zero interest rates. Well, for one, the U.S. government has been printing money as if it were going out of style.

What do you get when you artificially flood the market with cash? You devalue the currency. You create inflation. You distort asset prices. Is it any surprise that individuals and investors are seeking alternatives, any alternatives, to the dollar these days?

Bitcoin isn't the solution. It's a symptom. This government is intervention junkies. In doing so, it creates the opposite of the problems it purports to solve. Excessive government intervention creates economic instability.

This is where the anger comes in. So we, the responsible taxpayers, are left to watch as our federal government continues to gamble with our fiscal future. We’re expected to accept the word of the so-called experts, that same cohort currently steering us into a tank of irreversible debt and inflation.

Time for Individual Responsibility

Ultimately, the answer isn't to chase the latest get-rich-quick scheme, whether it's Bitcoin or meme stocks. The response to those moments is to embrace control over your financial future.

As exciting as this recent boom in Bitcoin may seem, it feels like a second warning bell. It’s a shot across the bow that the US economy is heading for the dangerous shoals of recession. Second, it’s a clarion call that too much government intervention is in fact what’s creating all the instability. It’s an admonition that we should stop blaming everyone else and instead be stewards of our own financial destiny.

  • Diversify your investments: Don't put all your eggs in one basket, especially a volatile one like Bitcoin.
  • Pay down debt: High interest rates are a killer. Get rid of that credit card debt and other high-interest loans.
  • Save for the future: Contribute to your 401(k) or other retirement accounts. Even small amounts can make a big difference over time.
  • Educate yourself: Learn about personal finance and investing. Don't rely on the government or so-called experts to tell you what to do.

Let’s be clear, an uptick in a garage for a speculative asset is not cause for celebration. Let's demand fiscal responsibility from our government. Let's embrace free markets and limited government. So we can get back to what really matters – creating a vibrant, thriving economy for us and our grandchildren. Because over the long term—that’s the best investment you can make. The other option continued fear of never-ending government overreach.

Let's not celebrate a temporary pump in a speculative asset. Let's demand fiscal responsibility from our government. Let's embrace free markets and limited government. And let's focus on building a strong, sustainable economy for ourselves and future generations. Because in the long run, that's the best investment you can make. The alternative? Continued anxiety over constant government intervention.