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Bitcoin has died 466 times

In case you are wondering where I get the data, you will probably be amazed to know that there is an actual website dedicated to counting the number of times Bitcoin "died". It is based purely on submissions. If you have the time, take your time, see for yourself the different circumstances that Bitcoin has been declared "dead" over the past 12 years and be amused.


While I usually write about Bitcoin every now and then, I don't usually write about Bitcoin in two successive articles. However, given how bearish everyone is towards cryptocurrency in general, I thought it's the best time to write about Bitcoin. After all, aren't bear markets the best times for you to sharpen your knowledge and accumulate in preparation for bull markets?


When everyone is writing bearish articles about how Bitcoin is going to fail, I think I am a contrarian here and like to share more on why I think the opposite is going to happen.


Some of the reasons are shared in the recent article here.


If you observe the recent network activity, you will notice that there is a very positive sign.


(Source: https://seekingalpha.com/article/4559146-bitcoin-is-dead-again)


Take a look at the above. The number of non-zero BTC wallet addresses is fast breaking the 22M barrier. If you are wondering why there is a sudden spike in November 2022, this is due to the FTX fiasco. When the bombshell of FTX collapse drops, many BTC holders end up transferring their BTC to their own digital wallets and that results in a significant rise in the number of non-zero BTC wallet addresses. Supply of BTC on exchanges dropped dramatically from 1.56M at the end of September to 1.26M today too as a result. To be honest, this is a very positive phenomenon. If everyone abandons Bitcoin, you will see the opposite happening as supply of BTC on exchanges should be rising as everyone will be looking to convert their BTC into fiat. This could then be a worrying sign as it could mean a collapse of Bitcoin network activity. If nobody is holding any BTC, then yes I'll agree that BTC is "dead". But the truth is the opposite is happening.


Naysayers of Bitcoin have always associate all the negative news (eg. Luna collapse, Celsius Network collapse, FTX fiasco etc) with the fact that Bitcoin is something "non-investable". What's common in all these arguments is that all of these have almost nothing to do with Bitcoin generally. Luna collapse has entirely nothing to do with Bitcoin. Exchanges such as FTX collapse represent a failure of the exchanges, not Bitcoin (see my article here). Blaming the failure of Bitcoin on exchanges almost sounds like saying a country's currency is worthless because of the collapse of some banks in the country. Given that most people generally do not do self-custody of Bitcoin, I can understand why people generally associate exchanges with Bitcoin. When you see everything you own in the exchanges becoming zero, you blame everything that comes with it. It's important to understand that you need to dissociate them. Doing self-custody of Bitcoin isn't the easiest method as I know many people around me are either lazy to do so or find it too difficult to know how to do it. Frankly, I'll say that it's probably just a 30 minutes effort if you bother to just google how to transfer your BTC to a cold wallet. It's almost as simple as ordering a cold wallet, waiting for it to arrive, and transferring your BTC to the wallet. There are tons of articles online which teach you how to do so. I believe that more and more people will do so as adoption of Bitcoin becomes more prevalent.


In the recent article, I have also highlighted a blog showing how a person regularly DCA a portion of his money into BTC every month since 2018 and has accumulated more than 4 BTC so far. The reason why I'm highlighting this again is because I honestly think this is the best example of what happens when you do things the right way. The author does not put his Bitcoin on exchanges, does not FOMO, and just regularly DCA his money into BTC. This is the perfect example of how investing in Bitcoin should be. So many people have derailed from this by either putting their Bitcoin on exchanges (which result in them losing everything when exchanges collapse) or just chasing after Bitcoin when it's at its ATH. These are not the right ways to do so.


(Source: https://er-bybitcoin.com/stacking-em-volume-28-november-2022/)


The author simply ignore any price action and just invest regularly in BTC. Yes, the initial years are always tough as you can see from his blog that his investments in Bitcoin are almost negative based on his investments in the past two years. If you were to be DCAing regularly into Bitcoin in the past two years, you are probably in the red too. However, take a look at what happen to his initial investments in 2018 and 2019. They are all generating phenomenal returns (+600%) for him. All in all, his Bitcoin strategy has given him +160% return despite the low price of Bitcoin now. In comparisons, the same investing strategy in S&P 500 could have given him +20% return instead. The only time that I'll admit that investing in Bitcoin fails is when this author has a lower return from his investments in BTC as compared to the same strategy in S&P 500. Till that day comes, his blog is the best example of how you should invest in BTC and why it's a superior investment vehicle.


I know that maybe not too many people here are convinced but I do strongly believe that the results will speak for itself in 2-5 years' time.


I also do share additional content in my Telegram channel. 140+ like-minded investors have already joined this channel. What are you waiting for?

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