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a podcast
exploring how finance and freedom connect in our lives
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welcome to episode 28 of the podcast
today
we're discussing Bitcoin's critical decision point
bitcoin has been consolidating around $100,000
which some see as a consolidation phase
before a breakout
the key is the upcoming labor market data release
this data historically impacts Bitcoin's price
will cover key levels and what to watch
alright so bitcoin huh
everyone's talking about it
especially with this old will it or won't it break
a hundred thousand dollar thing going on
yeah feels like we're all kind of
glued to the charts right now
waiting for the next move
well
you've sent me a ton of interesting stuff to dig into
articles some charts
even a clip from that Benjamin Cowan guy
the crypto Youtuber oh yeah
he always has some interesting takes
it's crazy how
Bitcoin's just been hanging around that
hundred thousand dollar Mark
like what for three months now
it does feel like it's holding its breath
doesn't it
one of these articles called it a consolidation phase
which apparently
is something Bitcoin does after a big price jump
makes sense when you think about it
some people probably cash out after a big win
you know take profits
which causes a little dip right
like I'm out of here time to enjoy the games
exactly and then
I bet you've got those big institutional investors
maybe they're making moves behind the scenes
during these quiet times that's like a standoff
everyone's watching each other
waiting to see who makes the first move
it kind of feels that way
yeah now
Benjamin Cowan in that clip you sent
he thinks things might heat up next week
oh really
why is that he says that labor market data
the unemployment rate specifically
might be what pushes bitcoin over that hundred
thousand dollar edge or keeps it stuck where it is
huh I gotta admit
the connection between jobs and Bitcoin
isn't that obvious to me
they seem like totally different things
I know right
on the surface it seems kind of random
but Cowan's argument is that
a lot of people see
bitcoin as a way to protect themselves
when the regular economy gets shaky
so if the economy looks like if unemployment goes up
people might
see Bitcoin as a safer place to put their money
yeah that's the basic idea
a jump in unemployment
usually means trouble for the economy
and when people get nervous
they look for somewhere safe to put their money
and for some that's bitcoin makes sense
so what about if the news is good
like if unemployment goes down
well that might mean
the economy is doing better than expected
which might make the Federal Reserve
you know the Fed keep doing what they're doing
but wait didn't you say
some people think the feds
actions could be bad for bitcoin
yeah it's complicated
it has to do with
how the feds policies can affect things
like inflation some people think their current policies
if they keep going could lead to more inflation
and when that happens
bitcoin starts to look more appealing
because it's seen as a hedge against inflation right
bingo but if the economy strong
the Fed might not change anything
which to some might mean bitcoins less attractive
so it's all about reading the signs
and guessing what everyone's gonna think about bitcoin
not just what's actually happening
pretty much Cowan basically laid out three scenarios
strong economy low unemployment
bitcoin might just hang out or dip a little
weak economy high unemployment
that could be the boost it needs to break $100,000
and what about if things stay basically the same
like no big changes in the unemployment rate
Cowan thinks that might just keep things stuck
no big moves
until there's a clearer sign of what's gonna happen
he actually compared what's happening now
to what happened back in 2016
2017 oh yeah
what's the connection there
well he says
Bitcoin's following a similar pattern to that period
which if it keeps going that way
could mean a huge price jump in the next few months
wow that's a bold prediction
he even showed this chart
a running one year ROI chart
basically it shows how Bitcoin's price usually doubles
every year but right now it's lagging behind a bit
so if it wants to keep up with that pattern
it needs to start moving soon exactly
of course no one can predict the market perfectly
Cowan even says that right
it's not like he has a crystal ball or something
but he's saying if we look at history
and we keep an eye on those key indicators
like the labor market data next week
we can
start to get a sense of what might happen with bitcoin
okay so
we gotta understand what this consolidation phase
really means
it's obviously more than just bitcoin taking a break
yeah what's the logic behind it
and has this happened before
yeah good point
so there are a few reasons why
something like bitcoin goes through these quiet periods
one is we'll just think about it
if you just made a ton of money on bitcoin
wouldn't you wanna cash out some
I mean yeah
probably take some profits
enjoy the whim exactly
and when enough people do that
the price naturally dips a little
but it's not just that it's also about
how much bitcoin is actually being traded
during these times
you mean like the volume of trading goes down right
it's like the market takes a breather
like a deep breath to get ready for the next big move
and that can create this feeling of anticipation
like something big is about to happen
I get it's like the calm before the storm
exactly and then
don't forget about those big institutional players
the ones with a lot of money to move around
oh right
they probably use these quiet times to make their moves
too exactly
they might be buying more bitcoin or selling some
or just waiting for the right moment
and because they're dealing with so much money
their actions can really shift things in the market
so it's not just individual investors
driving these patterns
it's as whole mix of different players
each with their own goals
absolutely and if you look back at Bitcoin's history
you'll see these consolidation phases happen again
and again
remember those big price explosions in 2017 and 2021
yeah those are wild
well guess what
bitcoin went through these exact same quiet periods
right before each of them
so this current pause
this sideways movement it's not necessarily a bad sign
right this happened before right
a lot of experts actually
think these consolidations are healthy for the market
like hitting the reset button
you know
it lets things even out before the next big jump
so is this calm before the storm about to end
are there any clues we can look for
well one article mention a 3
6 month rule which isn't really a rule
more like a pattern people have noticed
these consolidation phases tend to last well
three to six months hmm
so we're about three months into this one
which means we could
be getting close to the end of the weight maybe
but it's not a perfect science
sometimes they're shorter
sometimes longer it just depends right
right so
what could actually break this phase
and get Bitcoin moving again
the article talked about big economic changes
and things like institutions buying more bitcoin
yeah those are all things to watch
like imagine if suddenly
inflation was way higher than anyone expected
or the Fed did something
completely unexpected with their policies
people would freak out right
yeah and maybe turn to Bitcoin for safety
that's the idea and then there are things like
you know when governments pump money into the economy
or when big institutions decide to invest a lot
those big money moves exactly
that can really energize a market
and Bitcoin could ride that wave
we've seen more and more of those big institutions
getting into Bitcoin in the past few years
true it feels like every other week
another big company announces they're buying Bitcoin
and that sends a signal to other investors right
it's like saying hey
this bitcoin thing is legit
it's like getting a stamp of approval from the big
financial players exactly
and the more they buy
the higher the demand for bitcoin goes
and that can push the price up
maybe even out of this consolidation phase
so those
big players are definitely a key piece of the puzzle
but let's go back to that labor market data
coming out next week
Cowan seems to think it's a really big deal for bitcoin
he does he sees it as a way to gauge
the health of the US economy
and you know
the US economy still affects the whole world
including crypto right
we talked about how bitcoin is
like a hedge against economic uncertainty
exactly so if the data shows a weak economy
people might pile into bitcoin for safety
you mentioned a high unemployment rate
could actually be good for bitcoin
because it might push the Fed to do things that make
the US dollar weaker and that's good for bitcoin
yeah it's a little roundabout
I know but basically
if the economy struggling
the Fed might try to help by
you know lowering interest rates
or putting more money into the system
but those actions can sometimes
have unintended consequences
like weakening the dollar right
and when the dollar looks shaky
people might turn to things like bitcoin
which aren't tied to any one country's economy
so to sum it up
the labor market data affects the feds choices
which affect the dollar which affects Bitcoin
you got it it's all connected
but the question is historically
has there been a clear link between jobs data
and Bitcoin's price good question
has there well
it's not so straightforward
it's not like every time unemployment goes up
bitcoin automatically goes up too
there have been times when a good economy
with low unemployment actually helped bitcoin
wait really
how does that work think about it
when the economy's strong
people have more money to invest right
and some of that money might go into Bitcoin
so in that case
what's good for the economy is also good for Bitcoin
exactly it all comes down to how investors feel
and what they think about the economic news
but like we said before
there are also times when bad economic news
like high unemployment can be good for Bitcoin
because it makes those Fed actions more likely
the ones that can weaken the dollar
exactly so it's about understanding the whole picture
economic data
what the Fed does and the overall mood of the market
lots of moving pieces sounds complicated
like trying to predict the weather weeks in advance
there's too much going on
great analogy
it's not about knowing exactly what will happen
but more about understanding the possibilities
and that's why next week's data is so important
it could give us a big clue about where
Bitcoin is headed so if I'm falling all this correctly
we need to be ready for anything
bitcoin could go up it could go down
or it could stay stuck basically
yeah it's gonna be an exciting week
that's for sure so
should I be refreshing the Bitcoin price
every 5 seconds what should I be doing right now
well I wouldn't recommend staring at the charts nonstop
that can drive you crazy just remember
these consolidation phases are normal
and they often happen before big moves
just like we've been talking about
so even if nothing happens for a while
it's not necessarily a bad thing right right
my advice stay informed
be patient and maybe even enjoy the suspense
bitcoin is known for being unpredictable
so buckle up and enjoy the ride
and here's something for everyone to think about
Cowan
talked a lot about what might lead up to a breakout
but not so much about what might happen after
could this be the start of a whole new Bitcoin boom
and even if it breaks $100,000
could it still crash down again
those are the questions will be exploring next time
that's a great point lots to unpack there
and I'm looking
forward to digging into those questions with you
yeah those are some big questions for sure
it's like we're at a fork in the road
waiting to see which way bitcoin will go
to really get a handle on what might happen
after a breakout yeah
I think we need to look at both sides
you know the things that could keep pushing it higher
and the things that could drag it down
okay yeah
let's break it down that way
so let's start with the good stuff
what are the arguments for bitcoin just like
taking off from here
what could keep that momentum going
well for starters
we can't ignore all those big institutions
getting into bitcoin like we talked about earlier
the more they invest
the more it seems like a real legitimate thing
which attracts even more investors
it's like a snowball effect
exactly
and it's not just about those big players either
Bitcoin's gaining a reputation as a solid
way to store value
like some people are even comparing it to gold
digital gold right
yeah you heard that
yeah exactly
you know when the economy is uncertain
or things are unstable in the world
investors want something safe to hold on to
something that won't lose its value
an bitcoin
with its limited supply and decentralized setup
is starting to look like a good alternative
to traditional safe havens
like gold
so is like a shield against all the chaos in the world
that's one way to think about it
and as the world gets well
more unpredictable
we might see even more people turn to Bitcoin
pushing the price up even higher
but it's not just about fear driving Bitcoin's value
there's a lot of cool stuff happening
on the technology side too
yeah for sure
we can't forget about the tech
what developments are you most excited about
well
one example is something called the Lightning Network
it's basically
being built on top of Bitcoin's blockchain
and it makes transactions much faster
cheaper and easier to handle
this could be a game changer
because it means
Bitcoin could actually be used for everyday purchases
not just as an investment
so it's not just this abstract thing anymore
it's becoming more practical
exactly and that real world
usefulness is what drives long term value
but you know
we've talked a lot about the potential upsides
but we gotta be realistic
what are some of the risks
that could cause a correction
even if Bitcoin does break through that hundred
thousand dollar Mark yeah
gotta stay grounded right
what are you thinking well
one thing that always looms over crypto
is government regulation governments around the world
are still figuring out what to do with Bitcoin
and all these other cryptocurrencies
and let's be honest
they haven't always been the most supportive
if some country
suddenly decided to crack down on bitcoin
or put strict rules in place
that could scare investors
and send the price plummeting
yeah it's like a sword hanging over bitcoin's head
exactly that regulatory risk is always there
and then there's the issue of well
market manipulation
bitcoin is still a relatively new market
and let's face it not everything is always above board
those big players the ones with tons of bitcoin
they could manipulate the price
create artificial swings
that mess things up for everyone else
so it's a bit of a Wild West out there
lots of opportunity but also lots of danger
you could say that
and then you can't forget about the competition
there are new cryptocurrencies popping up all the time
and some of them are doing some
really innovative things that Bitcoin doesn't do
that competition could eat away
at Bitcoin's dominance and potentially hurt its price
right gotta keep up with the times
exactly and of course
there are those big economic forces
we talked about earlier a global recession
sudden interest rate hikes
a stronger US dollar
all of these things could negatively impact Bitcoin
because at the end of the day
it's still considered a risky asset
when people get scared about the economy
they tend to move their money to safer places
so even if Bitcoin has all this potential
it's still vulnerable to those big economic shifts
absolutely it's all interconnective
now we've looked at both the positive
and negative arguments but I'm curious
what do you think about
all the talk of this being the start of a whole
new bitcoin boom
is that hype or is it a real possibility
yeah I've seen a lot of people saying that too
what's your take well
I think it's definitely possible
bitcoin a surprised us before right
it's gone up when people thought it would crash
and it's crashed when people thought it would go up
if more institutions keep investing
if the world stays uncertain
and if bitcoin's reputation as a store of value
keeps growing then yeah
another big price surge is totally possible
so it's like a rocket ship that's fueled up
and ready to go we just don't know if it'll reach orbit
or come crashing back down
great analogy
trying to predict market cycles is super tough
there are so many variables
even experts get it wrong all the time
but that's part of what makes the space so exciting
right it's unpredictable
and there's always the potential for big wins
and big losses okay
so let's say bitcoin does break $100,000
and starts climbing what could trigger a correction
even in a positive market
even in a bull market corrections are normal
it's like taking a break on a long road trip
the market needs to cool off sometimes
before it can keep going
and a few things could cause that
even if bitcoins generally going up
one is profit taking as prices rise
some people who bought Bitcoin earlier
might decide to cash out lock in their profits
classic bilo sell high
exactly
and that selling can push the price down temporarily
then there's the danger of
you know too much hype
when Bitcoin's price is soaring
the media loves to talk about it
and that can create a fear of missing out
people start making impulsive decisions
buying bitcoin at inflated prices
just because they don't wanna miss the boat
and that can create a bubble which well
we know what happens to bubbles
they pop exactly
and that can be painful
for anyone who bought in at the top
so it's important to stay calm
and not get swept up in the frenzy
even when things look really exciting
and then there are always those unexpected events
that could happen a big hack
a security breach
a sudden change in government regulations
those things can shake investor confidence
no matter how strong bitcoin might seem
so even when things seem good
there are still things to watch out for
for sure cryptos
still relatively new
and vulnerable to those kinds of shocks
it's important to stay informed
be aware of the risks
and have a plan for dealing with them
it's like sailing in uncharted waters
you gotta be ready for anything
exactly that's why it's so important to understand
historical patterns
and pay attention to those key indicators
like we've been talking about
by looking at past market cycles
identifying potential risks
and monitoring things like that labor market data
investors can make better decisions
and navigate the crypto market more effectively
so it's not about knowing the future for sure
but about understanding the possibilities
and being prepared for anything
precisely and that's where I think
deep dives like this one can be so valuable
by exploring different perspectives
looking at the data
and considering all the possibilities
we can understand things better
and make smarter choices
like shining a light on a dark path
so we can see where we're going
great way to put it
we've talked a lot about market stuff
but I wanna step back for a minute
and think about the bigger picture
where does bitcoin fit into the whole financial world
what do you think its role will be
Mia that's a good question
it's obviously shaking things up
yeah in a lot of ways
bitcoin represents a fundamental shift
in how we think about money
value and control its decentralized nature
its limited supply
and its global accessibility make it truly unique
it's a potential game changer
it's like it's disrupting the whole financial system
exactly its very existence
raises big questions about central banks
about what money even is
and about the future of finance
of course some people say Bitcoin's just a bubble
a fad that'll fade away what do you say to that
well it's been super volatile
and there's definitely been a lot of speculation
but it's more than just a price on a screen right
right it's a technology
a network a whole movement
it's like the internet in its early days
lots of hype and uncertainty
but ultimately it changed everything
great comparison
and just like the internet changed how we communicate
and share information
bitcoin has the potential to revolutionize
how we think about and use money
it lets people send value to each other directly
without needing banks
it can be a hedge against inflation
and economic instability and
it gives people more control over their own finances
so it's not just about making money
it's about a shift in power
giving more control to the people
exactly and that's what makes bitcoin so compelling
both as an investment
and as a social and technological force
it's like a seed that's been planted
we don't know what it will grow into
but it has the potential to be something really amazing
and that's what makes this so exciting to watch
it's a journey of discovery
full of possibilities and challenges
okay so back to the current market
Cowan said that bitcoin is doing now
what it did back in 2016 and 2017
tell me more about that
what's similar and what's different
sure one big similarity is the timing
specifically in relation to the Bitcoin having
the having
is this event that happens about every four years
where the rate at which new bitcoins are created
gets cut in half this reduction in supply
is generally seen as a positive thing
because it makes Bitcoin more scarce
while demand potentially keeps growing
so it's like squeezing the supply
which could push prices up
exactly now
the last habbing was in May 2020
and both back then and now
we saw big price increases in the months after
this makes people think that the having
might act as a trigger for these big market cycles
interesting like a domino effect maybe
another similarity is the pattern of consolidation
and breakouts in both cases
Bitcoin traded sideways for a while
consolidating before shooting up to new all time highs
like a climber taking a break to catch their breath
before tackling the next part of the mountain
perfect analogy
now of course
there are some differences too
one big one is the level of institutional adoption
back in 2016 and 2017
not many big institutions were involved
today it's a different story
we're seeing major investment firms
hedge funds even corporations getting into Bitcoin
so the market is more mature now
more grown up exactly
and that brings more money
more stability and potentially less wild swings
like the adults are supervising the party now
kind of yeah
and that's probably going to affect
how this cycle plays out another big difference is
the overall economic situation
back in 2016 and 2017
the global economy was pretty stable
today we've got higher inflation
rising interest rates and a lot of uncertainty
so the world's a lot more chaotic now
yeah exactly
and those big economic factors
are gonna play a big role in how bitcoin performs
so even though
there are some interesting
similarities to the last cycle
things are different this time around
it's hard to say for sure how things will go
we can learn from history
but it's not a crystal ball
right exactly
we need to think about both
the similarities and the differences
as we navigate this market okay
so back to the present
we spent a lot of time talking about this
labor market data coming out next week
and how Cowan thinks it's a big moment for Bitcoin
why does he think it's so important
well remember
the labor market data tells us how healthy the US
economy is and the US economy affects everything
including crypto and because bitcoin is often seen as
a hedge against economic uncertainty
if the data shows a weak economy
people might start moving their money into bitcoin
you said that
a high unemployment rate could actually be good for
bitcoin because it might push the Fed
to make decisions that weaken the dollar
and that's good for bitcoin
could you explain that again
sure it's a bit of a roundabout effect
but the idea is this if the economy is struggling
and unemployment is going up
the Fed might try to help by doing things
like lowering interest rates
or printing more money
but these actions can sometimes backfire
and weaken the US dollar and when that happens
people might turn to things like bitcoin
which aren't tied to any specific country's economy
it's like a chain reaction
the labor market data affects the Fed
which affects the dollar which affects Bitcoin
exactly it's all interconnected
but has there actually been a clear connection between
jobs data and Bitcoin's price
in the past good question
has there well
it's not quite that simple
it's not like every time unemployment goes up
bitcoin automatically goes up too
sometimes a strong economy
with low unemployment has been good for Bitcoin
wait really
how does that make sense think about it
when the economy is doing well
people have more money to invest
right and some of that money might flow into Bitcoin
so sometimes
what's good for the economy is good for Bitcoin too
exactly it all depends on
how investors are feeling
and how they interpret the economic news
but as we discussed earlier
there are also times when bad economic news
like high unemployment can be good for Bitcoin
because it makes those Fed actions more likely
the ones that can weaken the dollar
exactly so
the key is to understand
the innerplay between all these different factors
the economic data
the feds actions and the overall mood of the market
it's a complex puzzle with a lot of moving pieces
sounds like trying to predict the weather
you can look at the forecast
but there always surprises
that's a great analogy
the point is not to make perfect predictions
but to understand the different possibilities
and how different scenarios might play out
that's why this upcoming labor market data is so
important it could give us a big hint
about what's likely to happen with Bitcoin
okay so
we've talked about
the relationship between the labor market
and Bitcoin and we've discussed
the different scenarios that could unfold
based on this upcoming data release
but I wanna go back to this idea of bitcoin
as a hedge against economic uncertainty
how does that work exactly
what makes bitcoin appealing as a safe haven asset
that's a great question
and it gets to the heart of what makes
bitcoin so different its appeal as a safe haven
comes down to a few key things
first it's decentralized nature
unlike regular currencies
which are controlled by central banks
bitcoin runs on a decentralized network
this means it's not subject to the whims of governments
or financial institutions
no single entity can manipulate or devalue it
so it's like a lifeboat
that can't be sunk by the same storm
that might take down traditional financial systems
I like that analogy
the second thing is its limited supply
there will only ever be 21 million bitcoins
this means it can't be inflated by governments
or central banks printing more money
the scarcity is seen as a Protection against inflation
and currency devaluation kinda like gold
so it's like a digital version of gold
a finite resource that can't be manipulated or debased
exactly and the third thing is its global accessibility
you can send and receive bitcoin anywhere in the world
with an internet connection
this makes it super valuable
for people in countries with unstable currencies
or limited access to traditional banking
so it's like a financial passport
that lets you bypass traditional gatekeepers
and access a global network of value exchange
precisely these characteristics decentralization
limited supply and global accessibility
are what make bitcoin attractive as a safe haven
especially during times of economic
or geopolitical turmoil so when things get rough
bitcoin could be a beacon of stability and resilience
it's definitely a possibility
of course it's important to remember
that bitcoin is still a relatively young
and volatile asset its price can swing wildly
and its future as a safe haven isn't guaranteed
it's not completely risk free
but it does have some
unique features that make it appealing
during uncertain times okay
that makes sense so we've covered a lot of ground here
we talked about market cycles
bullish and bears factors
the importance of this upcoming labor market data
and bitcoin's potential as a safe haven asset
but let's shift gears for a moment
and talk about the average person
who's just starting to learn about Bitcoin
what advice would you give them
as they dip their toes into this new
and exciting world
that's a great question and one I hear a lot
my advice for beginners would be this
first learn as much as you can
read articles watch videos
listen to podcasts like this one
and talk to people who know about Bitcoin
the more you understand how it works
the better decisions you'll make
it's like anything new right
gotta do your research exactly
and don't be afraid to ask questions
there are tons of resources online
and within the Bitcoin community
that can help you learn second
start small
don't invest more than you can afford to lose
bitcoin is a volatile asset
its price can move up and down quickly
so start with a small amount
and gradually increase your exposure
as you gain more experience and confidence
so it's like testing the waters before jumping in
exactly and third
be patient bitcoin is a long term game
don't expect to get rich quick
focus on understanding the technology
the market and your own investment goals
it's like planting a seed
and watching it grow over time
precisely
bitcoin is still young and has a lot of potential
by taking a long term view
you can benefit from its growth in evolution
so it's not about timing the market
or chasing quick profits
but about understanding the fundamentals
and making informed decisions
based on your own situation and goals
exactly knowledge
patience
and a little healthy skepticism will serve you well
in the world of Bitcoin
those are great tips for beginners
but what about more experience bitcoin investors
what should they be focusing on right now
that's a good question I think for experience investors
it's all about a few key things
first managing risk
like we discussed
Bitcoin is volatile and the market can change fast
having a solid risk management strategy is crucial
this might mean diversifying your portfolio
setting stop loss orders to limit potential losses
and being prepared
mentally and financially for potential downturns
so it's not just about making money
but also about protecting what you've already made
exactly
protecting your capital is just as important as growing
it especially in a market like crypto
the second thing is staying informed
the crypto world is constantly changing
with new technologies
regulations and market trends emerging all the time
staying up to date
and being flexible with your investment strategy
is key
it's like navigating a constantly changing landscape
you got to be aware of the shifting terrain precisely
and the third thing I'd suggest is to step back
and think about the big picture
implications of Bitcoin
as we've discussed it's more than just an investment
it's a technology a network
a movement that has the potential to reshape finance
consider the broader impact of Bitcoin
and how it might fit into your long term
investment goals so
it's about looking beyond the daily price swings
and thinking about the bigger picture
what role could bitcoin play in the world
10 or 20 years from now exactly
bitcoin has the potential to change
the financial system as we know it
by understanding its potential and its risks
experienced investors can make better decisions
and position themselves to benefit from its evolution
okay so we've talked about the market
bitcoin is a safe haven
advice for beginners and experienced investors
is there anything else you wanna add
before we move on to the last part of our deep dive
you know I think
it's worth emphasizing that bitcoin
is more than just an investment
it's an innovation that's challenging the status quo
and making us rethink how we approach money
and finance even if you never buy any bitcoin
it's worth paying attention to
because it's likely to have a big
impact on the world in the coming years
that's a powerful statement
yeah I think
it's why so many people are interested in bitcoin
it's not just about potential profits
it's about being part of something bigger
something that could change the world exactly
it's about empowering individuals
promoting financial inclusion
and creating a more transparent and equitable
financial system those are some big goals
yeah or Mays
to be seen whether Bitcoin can actually achieve them
of course
but the fact that it's sparked these conversations
and challenged our assumptions is a big deal in itself
it's making us rethink how we do things
and that's always a good thing
I agree change can be uncomfortable
but it's often necessary for progress
okay let's pause here for now
we've covered a lot
and our listeners probably have a lot to think about
in the final part of our deep dive
I want to explore something that
Cowan didn't really talk about
what happens after Bitcoin breaks out
will we see a new bull market
or will there be a correction
and what factors could affect its price in the long run
those are great questions
and I think they're the perfect
way to wrap up our deep dive
let's take a short break and when we come back
we'll explore what the future might hold for bitcoin
alright so picking up where we left off
Bitcoin's not just about buying and selling
it's really making us rethink what money even is
it's true whether you're a hardcore investor
or just someone who's heard of bitcoin
it's hard to deny
it's shaking things up in the financial world
we're seeing all these new ideas popping up about money
in value new technologies
it's pretty exciting yeah
it's like
bitcoin cracked open a door to a whole new world
and now we're all trying to figure out
what's on the other side exactly
and speaking of uncharted territory
remember how Benjamin Cowan
mostly talked about
what might lead up to Bitcoin breaking $100,000
what about what happens after that
yeah that's the big question right
does breaking $100,000 mean
bitcoins just gonna keep going up
like a new Bull Run or could it still drop
even after it hits that big number
and what are the things that'll shape bitcoin's future
in the long run we talked about some of the risks
but what about the potential for it to grow and change
okay so let's talk about the future
what's exciting you about bitcoin's potential
well one thing that really gets me is that
we're still so early in the game
we're witnessing the birth of a whole new kind of asset
a new technology a new way to think about money
and that means
there's a ton of room for growth and innovation
it's like the internet and the 90s right
people knew it was a big deal
but they couldn't even imagine how much it would change
everything perfect comparison
and just like the internet
I think bitcoin's gonna keep evolving
driven by new tech more people using it
and of course how governments decide to regulate it
let's start with the tech side
what innovations could shape Bitcoin's future
sounds good
what do you keep an eye on
well we talked about the Lightning Network
how it's making bitcoin faster and easier to use
for everyday stuff but there's more
people are working on ways to make bitcoin transactions
even more private insecure
which is a big deal for people concerned about privacy
yeah privacy is a big issue these days
with everything being online right
and then there are things like smart contracts
and decentralized finance
what they call defi being built on top of Bitcoin
these could open up all sorts of new possibilities
like decentralized lending
new ways to manage assets
even prediction markets it's pretty wild
so Bitcoin could be like
the base layer for a whole new financial system
it's definitely possible and as that system grows
it could attract more users
developers and investment
which would drive even more innovation
it's like building a city
the more you build
the more people wanna come live and work there
which leads to even more building
okay so that's the tech side
but what about adoption what needs to happen
for bitcoin to go from this niche thing
to something everyone uses
I think the key is making it easy to use
right now buying
selling and using Bitcoin can be pretty confusing
for most people while it's exchanges
all these new terms to learn
if we want mass adoption
we gotta make the experience simple and intuitive yeah
like remember when computers were super complicated
used
then someone came along and made them user friendly
and boom everyone started using them
exactly
we need that same kind of aha moment for Bitcoin
where people are like oh
this is actually easy and make sense
and I think that'll happen
as more businesses start accepting bitcoin
and as those user friendly wallets
and apps become more common
so it's about making Bitcoin accessible to everyone
not just the tech savvy exactly
and then there's a whole regulation thing
we talked about how uncertain regulations are a risk
but they can also be a good thing
how so while clear regulations can bring legitimacy
and stability to the industry
it's like setting the rules of the game
so everyone knows what's allowed and what's not
so it's about creating a level playing field
making sure everyone's playing by the same rules
right and as more governments create those clear rules
for bitcoin it could boost confidence among investors
and pave the way for more people to start using it
it's like giving bitcoin an official seat to the table
recognizing it as a legitimate
part of the global financial system
exactly okay
so we've talked about the potential for growth
and innovation but let's be real for a second
bitcoins known for being super volatile
with huge price swings can it really become mainstream
if it's so unpredictable yeah
that's a big concern for a lot of people
it's a valid question
and it's one that people have been debating forever
in the cryptoworld
some say the volatility is just part of growing up
that it'll stabilize as the market matures
and more people use bitcoin
others say it's just part of bitcoin's DNA
that it'll always be prone to big swings
because it's decentralized and digital
influenced by market sentiment
and all sorts of external factors
this is no easy answer not really
it's something we'll have to see play out over time
and it's something everyone needs to consider
for themselves are you okay with volatility
can you handle those UPS and downs
or do you want something more predictable
it's about knowing your own risk tolerance right
absolutely and remember
Bitcoin's more than just something to trade
it's a technology a network
a movement with the potential to make a real
difference in the world
we've talked about how it could democratize finance
empower individuals and promote financial inclusion
but what are some other ways it could have a positive
impact well
one area that's really interesting is remittances
you know
when people send money to family and friends in
other countries especially developing countries
traditional services can be really expensive and slow
bitcoin offers a much faster
cheaper
and more transparent way to send money across borders
that could be huge for people who rely on remittances
absolutely and then
there's Bitcoin's potential to disrupt
the traditional banking system
which can be unfair and even predatory
especially for certain communities
bitcoin could give people access to financial services
outside that system
empowering those who have been left out
it's like giving people the tools to build their own
financial futures
without being limited by the traditional system
that's the idea
and it's inspiring a lot of people around the world
now we've been pretty optimistic about bitcoin's future
and we should acknowledge that
there are definitely challenges ahead
we talked about regulations
tech risks market manipulation
but what do you see
is the biggest threat to bitcoin's long term success
hmm that's a tough one
what worries you the most
I think the biggest danger is complacency
it's easy to get caught up in the hype and excitement
but we can't forget that
Bitcoin is still relatively new
and it's constantly changing
we can't just assume it'll succeed
we need to keep innovating
adapting
and overcoming challenges to reach its full potential
so no resting on our laurels
exactly and it's about building a strong community too
one of the most amazing things about Bitcoin is
the people involved developers
entrepreneurs investors
enthusiasts from all over the world
they're all passionate about Bitcoin's potential
and it's this community that will
ultimately determine its fate
it's a collective effort a shared journey
absolutely and it's a journey
I'm incredibly excited to be a part of
you've given us a lot to think about today
uh it's clear that Bitcoin is much more than just a
digital currency it's a movement
a technology a force for change
it's been great exploring all this with you
I hope our listeners have Learned something new
and are excited to keep
learning about the world of Bitcoin
and remember the best way to learn is to stay curious
ask questions and never stop exploring
thanks for listening and until next time
happy researching