There is a fact in life that many people refuse to accept. This simple truth is that the reality or logical landscape of a situation does not necessarily manifest itself as actuality in the world we live. Put another way, reality is not reality, perception is reality. And this is the case of Bitcoin legitimacy as it stands today.
To many digital currency enthusiasts, Bitcoin is the obvious choice for the currency of the here and now, in addition to the future. Untethered by central authority, Bitcoin represents freedom of money in the internet age. Gone are banks, egregious fees, and the Chinese Walls of the current transfer payment infrastructure. It’s cheap, easy, fast, convenient, and it can be trusted by people everywhere. In short, Bitcoin is perfect money…a digital pot of gold.
Unfortunately, sometimes facts just don’t matter in reality. Nevermind the insolvency of the US Government and the brazen behavior of the Federal Reserve – for all intents and purposes the dollar should be a steaming pile of refuse given it’s treatment by the people pulling the levers of financial alchemy. Our leaders have set out to destroy our domestic currency in the name of “recovering” not only our own economy, but that of the world.
Now rather than reverting back to it’s intrinsic value, which, remember, is lower than the worth of a piece of toilet paper, the dollar has rallied. Heck, it’s been an epic rally that is putting gold bugs and digital currency advocates to shame worldwide. Despite the morally and financially bankrupt oligarchs doing their best to destroy the dollar’s purchasing power the market won’t buy the devaluation narrative right now and investors are buying dollars hand over fist as a result.
A New Age
This is why Bitcoin has not engaged in a sustained rally since peaking in late 2013 / early 2014.. I truly believe Bitcoin is in a battle with the dollar right now, which it will win…eventually. However, in the meantime, don’t be surprised to see Bitcoin bump around the bottom. Why? Because perception is reality. People believe Bitcoin is for drug trafficking and illicit online activities. They believe in the dollar as it’s the currency they grew up with, trust, and assign patriotic value towards. The market has an emotional attachment to the world’s reserve currency and this won’t be easily broken.
Until perception and reality realign themselves in the currency marketplace, things will likely be depressed for the foreseeable future. And be careful what you wish for with the demise of King Dollar, because let’s face it, if the dollar goes down we all go down with it regardless if things will be better in the long run. Our collective fate includes Bitcoin in it’s story…and with gradual or sudden demise of the dollar will come the ascendence of a new age of digital value.