RE: LeoThread 2025-07-02 07:22
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Bitcoin serves as a means of preserving wealth. Although many currently view it as a speculative asset, Bitcoin actually mitigates risks inherent in traditional financial frameworks.
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It stands apart as the only truly decentralized digital asset. While its value in US dollars may fluctuate dramatically for an extended period—or possibly indefinitely—1 BTC will always remain equivalent to 1 BTC.
Today, only about 1% of the global population holds Bitcoin. However, in the months and years ahead, its ownership will broaden. The present holders may eventually need an incentive to divest.
Historically, entities with deep financial resources have capitalized on fear. It's important to note that most current Bitcoin owners lack a thorough understanding of its fundamentals; they pursue it primarily for potential US dollar gains.
Market dynamics can trigger a rush to buy during downturns or sell during upswings.
With their vast purchasing power, institutional players can drive Bitcoin's price upward, compelling less knowledgeable holders to sell, while dollar valuations become increasingly unreliable due to limitless printing.
As banks and financial institutions have the ability to mint more currency, these players can buy more Bitcoin whenever needed.
They may well elevate Bitcoin's price dramatically, prompting those with limited insight to liquidate their positions.
For many, Bitcoin's value far exceeds its current US dollar price—it's a symbol of financial freedom, a way to secure wealth without dependence on banks or governments.
While the US dollar valuation of Bitcoin might waver, if fiat cash is needed to cover daily expenses, selling a portion of Bitcoin is a viable option; conversely, extra fiat often goes toward acquiring more Bitcoin.
Generally, individuals who are progressing in their careers or businesses tend to accumulate Bitcoin, gradually reducing its circulating supply as value creation continues.
Hence, Bitcoin should primarily be regarded as a long-term store of value. Relying on frequent buying and selling based solely on its US dollar price could lead to substantial losses.