Bitcoin's Tumultuous Journey: A Deep Dive into its Cyclical Nature and Questionable Future

The Pattern of 2023: A Revealing Year for Bitcoin

In 2023, the Bitcoin market presented a clear, cyclical pattern that seemed to disproportionately benefit professional and institutional investors. A trend emerged where Bitcoin typically peaked around $40,000, triggering a sell-off from the more informed investors. As the price plummeted to near $20,000, these same entities re-entered the market, buying up Bitcoin at a lower price and setting the stage for the next cycle.

The Cost to the Little Man

During these cycles, amateur investors, often on the back foot, found themselves trapped in a costly game. Buying high and selling low, they bore the brunt of the volatility, incurring significant losses while the more savvy players reaped the rewards. This repetitive cycle suggested not just market trends but a systematic extraction of wealth from the uninformed to the well-informed.

Shorting: A Strategy for the Elite

As Bitcoin neared its peak, many professionals didn't just sell but also shorted the market, betting on its fall. This strategy amplified their gains and further pressured the price downward, exacerbating the losses for the average investor who was neither privy to such strategies nor equipped to employ them.

Bitcoin's Stagnation: A Technology in Limbo

Despite its nine-year existence, Bitcoin has shown a startling lack of evolution. If we apply the factor of 8, mirroring the rapid evolution seen in internet technology, Bitcoin is effectively 72 years behind. This stagnation is alarming, considering the pace at which digital technologies evolve and become obsolete.

The Environmental Quandary

Bitcoin's energy consumption is another Achilles' heel. The network's power usage is thousands of times more than what we would consider acceptable for modern systems, casting a dark shadow over its future viability and ethical standing.

The Diminishing Relevance of Bitcoin

In the fast-paced world of technology, systems typically lose relevance after nine years. Bitcoin, however, has clung to its position despite minimal innovation. This resilience is increasingly seen not as strength but as inertia, a failure to adapt and improve in a world that demands constant evolution.

The Broken Promise of Financial Democracy

Bitcoin's promise of democratizing finance now seems a distant dream. The cyclical nature of its market, dominated by a few, and the lack of significant updates to its system, reflect a technology that serves the interests of the few rather than the many. The vision of empowering the "little man" has been overshadowed by the reality of a system that favors the established and the informed.

The Quest for a New Digital Champion

As Bitcoin's flaws become more apparent, the focus shifts to newer technologies. The digital currency of the future must not only address the shortcomings of Bitcoin but also align with broader goals of efficiency, sustainability, and inclusivity. This new champion should embody the original spirit of Bitcoin, offering a decentralized, democratic financial system that is accessible and fair to all.

Reimagining the Future of Digital Currency

The journey of Bitcoin has been tumultuous, marked by highs of innovation and lows of stagnation and exploitation. As we look to the future, it's clear that the path forward is not through Bitcoin but through the next generation of digital currencies. These successors must learn from Bitcoin's mistakes and forge a path that is sustainable, efficient, and, most importantly, equitable. The dream of digital financial freedom is still alive, but it won't be realized through Bitcoin. Instead, it awaits the potential of new technologies that dare to reimagine what a digital currency can and should be.

Hopes for the year to come

Let us hope 2024 will be the year where blockchain technology reaches maturity and shows to the world just how much sense it makes to add decentralized technologies to the current digital world, the potential for resolving the problems, both on- and offline, is huge and the solutions are just around the corner. 2024 will also introduce new stable coins many of which will hopefully resolve the problems that bitcoin has not, but without the speculatory aspect tied to systematic losses in the bottom, so we can separate financial speculation from financial freedom, it is about time.

Ronni K. Gothard Christiansen // VikingTechGuy?

Creator, AesirX.io?

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