Bitcoin – do you remember when that was the revolution? The proverbial digital flip the bird to Wall Street, a financial system created by the people, enjoyed by the people. It seems like an eternity ago, doesn’t it? Now, as Bitcoin staggers, showing signs of fatigue after its April surge, we have to ask ourselves: has the dream died? Or worse, has it been hijacked?
Whales Win, Everyone Else Loses
Let's be brutally honest. The promise of Bitcoin as a democratizing force is falling apart under the burden of institutional greed. We’re all still feeling the effects of that 27% price hike that hit in April—how thrilling! What followed? Stagnation. And now, bearish indicators are flashing red. Glassnode data showing negative spot volume delta? Increased short positions? None of these are good, healthy, democratized market signs. They're signs of manipulation.
Think about it. Who benefits from this volatility? Not the everyday American depositing a couple hundred bucks into crypto, wishing he wins the jackpot to one day retire in ease. No, it’s not the sailors, it’s the whales. Only these institutional investors and crypto billionaires have the resources to bear the brunt of the speculation, signal manipulative activities to their advantage. They’re all the while coordinating their own hedging strategies, the rest of us are getting left holding the bag.
What we are witnessing is the same kind of economic exploitation, with a technology-driven twist. The rich get richer, and the poor get…rekt. It’s the same story, only with shinier tech. This isn't financial freedom; it's financial predation.
Gold Rush or Fool's Gold?
Others argue that Bitcoin is already beating gold as a hedge. The hot take We are witnessing a huge migration of conservative investors moving away from traditional assets and into crypto. Geoff Kendrick of Standard Chartered might be onto something. Then ask yourself who is dictating that rotation. It's not your neighbor. It’s not hedge funds and investment banks looking for the next big score.
This feels a lot like the housing crisis of 2008, doesn't it? Remember the promises of homeownership for everyone? Those constricting and archane financial instruments that were designed to do just that? The bottleneck breakthrough that led to the ultimate crash that made millions homeless and jobless? At this point, Bitcoin is starting to look like a toxic asset. Once again, it’s being repackaged for a new generation of unsuspecting investors.
Bitcoin’s price bottom was $74,500 — that’s what Hayes believes. So far in 2023, he predicts it will easily jump to $200,000. As Bernstein stock analysts put it, they are struggling to be bearish on Bitcoin. They think the crypto currency can reach $120,000 by the end of the second quarter. This is what we called hopium.
- In 2008, the promise was homeownership.
- Today, it's financial freedom via crypto.
Both short-sighted and driven by greed, both projects benefiting the few at the expense of the many.
Reclaim The Crypto Dream
Next, let me clarify that I don’t think blockchain tech is the devil incarnate. Far from it. The promise of decentralized, transparent, equitable systems remains. But Bitcoin, in its current form, isn’t the solution.
First, we need to demand regulation. Not the kind that kills innovation, but the kind that shields working people from corporate malfeasance. We have to make the whales play by the same rules and create a fair marketplace.
Second, we need to look for different crypto projects – projects with a focus on equity, transparency, and community governance. Projects built for the people, not for the bottom line of bankers.
Bitcoin’s current fatigue isn’t only a healthy market correction – it’s a symptom of a deeper, more fundamental problem. This is an indicator that the original promise of crypto is wearing thin. That dream of economic empowerment for all is fading. We can't let that happen. It’s going to take all of us to seize that original crypto dream and manifest a financial system that serves all of us. The latter is the deepening and entrenchment of the inequalities that make our society so unacceptable. And that is a future none of us can accept.
This is about more than dollars and cents. It’s about the type of future we want for ourselves. It’s about creating a more just and equitable society. And that's a fight worth fighting.
