Why Did People Change Their Opinion On Bitcoin?
Many began to badmouth Bitcoin when it became apparent that Putin was likely to use the cryptocurrency to evade sanctions and defy the West. What we have since seen transpire has probably surprised many and perhaps even taught a lesson to some. Bitcoin is a neutral asset. This is what makes it unique. It should never be politicized, and yet, unfortunately, we are seeing gatekeepers coming under severe pressure to do just that.
Despite increased censorship, Bitcoin continues to function as intended. A neutral asset can be used for both good and evil, and it is inspiring to see the crypto community condemn Russia’s unnecessary war. Simultaneously, the crypto community is leading by example, with crypto donations flooding in to support Ukrainians. It has been extremely encouraging to see how crypto donations have been pouring in for Ukraine.
Crypto Donations To The Rescue
Approximately $20 million has already been donated to Ukrainians. The Ukrainian government has also begun receiving crypto donations in BTC, ETH, and USDT. The last figure I heard was that $3 million had already been donated in support of the government. As Ukrainians no longer have much access to functional banking services, Bitcoin is making a world of difference.
Crypto is busy operating as a currency and medium of exchange in a time when government-issued money and banks are failing. Although we most definitely wish that this tragedy had never happened, it is proving to be a perfect test run for Bitcoin. This is exactly what Bitcoin was designed for: to enable peer-to-peer transactions, regardless of government or banking status.
How Bitcoin Captured A Global Audience
With all eyes on Ukraine, it is almost impossible for the masses not to see how Bitcoin is being used to help and empower Ukrainians. In a time of absolute dire straits, as the traditional monetary system begins to fail, Bitcoin enters the picture. The idea of crypto and its motivation appear almost prophetic in times like these. What solution would there be if crypto didn’t exist?
With all the chaos of late, even in first-world “havens” such as Canada, you can bet what people are thinking. I am sure many are considering having a rainy day, emergency crypto fund. I am sure new wallet stats will rise as people begin taking out crypto insurance policies. Trust is eroding away faster than anyone could have imagined three years ago. The last two years have been like one long commercial encouraging everyone to buy Bitcoin.
We Are Still In Volatile Times
Sure, there is still a constant risk for the crypto market, as violent volatility can still be triggered. What we have been experiencing of late is definitely a volatile market, but things could get a lot more hectic, given the right stimulus. However, at some point, Bitcoin tends to thrive in difficult conditions, but usually after initially falling victim. At this point, I expect significant upside over the next three to six months.
That is not to say that the market cannot go lower. However, we are seeing increasing motivation for people to begin holding at least some Bitcoin and crypto. I really believe that, even though many may not like Bitcoin for whatever reason, recent events may have just convinced them otherwise. Whether you approve of something or not means very little when you desperately need it!
Bitcoin Is No Longer A Theoretical Concept
For the longest time, people have argued that Bitcoin cannot operate as money—the argument centered on the possibility in theory, but the high likelihood of failure in practice. However, given the opportunity, Bitcoin didn’t wait for an invitation; it set out to do exactly what it was created for. Satoshi’s design was to have an alternative to traditional currency and banking institutions.
This is precisely what transpired regarding its use during a time of war and banking instability. Not only did Bitcoin naturally shift to fulfilling the need it was created to, but it also succeeded. What better time for Bitcoin to prove its utility than during a financial collapse and outages of banking institutions and services?
How The Lightning Network Is Transforming Bitcoin
Scalability has been another point of contention regarding Bitcoin naysayers. However, the introduction of the Lightning Network has demonstrated how fast and extensive Bitcoin can be when used with second-layer solutions. Transactions can occur at scale with near instant settlement, which is far superior to current cross-border transactions.
An international money transfer can realistically take days to be settled. Bitcoin gets it done in under a second via the Lightning Network. Essentially, this disproves the argument that so many who oppose Bitcoin continue to cite. Bitcoin is scalable and inexpensive to use, provided the appropriate measures are taken. This is yet another example of why crypto education is so vital.
What Is The Best Hardware Wallet For Bitcoin?
One of the most secure hardware wallets for storing Bitcoin is the Trezor Safe 5 (Bitcoin-only edition). It is designed specifically for Bitcoin and has an EAL6+ certified secure chip. The Safe 5 is perfect for Bitcoin maxis, as it is intentionally built for Bitcoin and is highly resistant to hacks and other threats. For Bitcoin holders with an extensive altcoin portfolio, Ledger and SafePal are reputable options.
It is important to note that if you are holding Bitcoin or crypto as an insurance policy against banking and centralized institutional failures, you don’t want your assets on any third-party platform, especially an exchange. Hardware wallets provide the highest level of security and self-custody, keeping the owner in the driver’s seat.
Final Thoughts
Bitcoin appears to be built for times of chaos and uncertainty. An asset that becomes even more useful and expedient in a time of war is a very valuable asset to hold long-term. Furthermore, banking shutdowns and limitations do not interfere with its efficiency; in fact, they actually enhance it. This is how a truly anti-fragile asset operates and performs.
It thrives in the heart of chaos that typically destroys or diminishes alternative assets or payment methods. Bitcoin is doing precisely what it was intended to do without the assistance of TradFi. It is important to note that Bitcoin can operate independently of TradFi. However, in time, TradFi will rely on crypto models such as tokenization.