Of all the narratives circulating in the Bitcoin community, the “altcoin” narrative is the most popular, but the easiest to refute. Bitcoin as a currency is more than a reality. It all started with the cypherpunks. Then came the anarchists. And then came the libertarians. In the course of time, however, speculators (minoritas) also arrived. And with speculators, the narrative of Bitcoin as a fixed asset emerged in the narrative competition.
In contrast to the “currency” narrative, the “asset” narrative is verifiable. It’s not a claim. It’s perfectly verifiable historical behavior as Bitcoin is simply behaving as a fixed asset right now. The 2017 bull cycle was mainly driven by speculators. ANDThe private investor and “amateur” were the protagonists at the time, but some venture capitalists and some family offices were also present.
Read on: Speculation versus Investment. What’s the secret sauce to make money?
The current bull season is very different in this regard as we have institutional capital today. We now have SP 500 companies and hedge funds. This implies that the configuration of the community is in the process of transformation. I mean their demographics are changing. The “ideological bitcoiner” of the early days is losing its place, hence its narrative monopoly. Now we have new actors stealing the limelight from libertarians. It is the era of smart money.
Millennials who have joined the Bitcoin world for the past 4 years for lack of alternatives have adopted the libertarian narrative. Suddenly a group of young people with no prior knowledge of finance or economics began to consider the old libertarian rhetoric to be the big news. Why? Well, we must remember that today we are living in the age of post-truth. The sources of the “truth” can be found on Twitter and YouTube. That is, the crypto influencers trained the new converts. Roger Ver, John McAfee, Max Keizer, Andreas Antonopoulos, Tone Vays, and Anthony Pompliano are some of the names of the evangelizers who helped spread the libertarian tide in the Bitcoin community.
However, over time, many have realized that something is wrong with the libertarian narrative. First of all, the data do not support the liberal narrative. And all of this, from the separation of state and economy, the abolition of fiat money, the end of the dollar, the closure of central banks, the predominance of the free market, the return to a hard monetary system and the concept of a “safe haven” comes to many Not on investors’ minds.
Is Bitcoin a Currency? In other words, is it a payment method to buy goods and services? A currency is primarily a medium of exchange. The success of a currency lies in its commercial introduction, and this would put Bitcoin in open competition with the dollar. So we would have to go into the world of trading to be able to measure the use of Bitcoin. In this case we would use the same Visa, Mastercard or PayPal indicators to be able to track the process.
Is Bitcoin an Asset? Is it an investment vehicle? In this case, the user would buy Bitcoin today and expect a future return. The most important aspect would be the price. And this would put Bitcoin into open competition like the stock markets. So we would have to go to the exchange to appreciate the usage of bitcoin. In this case, we would use the same indicators Wall Street uses to determine the success of a stock or commodity.