Bitcoin’s hero’s journey

Every story lives from the fact that the hero sets out into the big, wide world to have adventures there. In the process, he encounters all kinds of obstacles and shortly before reaching his goal he stumbles and threatens to fall apart before he pulls himself together and conquers the final opponent. You see this in almost every film – and also in the bitcoin price. It is currently on a downward slide, but is expected to rise to an all-time high in the next few years, according to Changpeng Zhao, CEO of Binance.

His word to God’s ear, because at the moment BTC is miles away from its all-time high of 68,300 US dollars, set on 10 November 2021. Instead, bitcoin is trading in the 20k range and sometimes bobs above, sometimes below the twenty thousand mark. Rightly so and long overdue, according to Bitcoin critic Peter Schiff. Long-term Bitcoin investors see the big picture and thus only one crash of many: In the 2017/2018 bull run, the bitcoin price fell from around 20k to 3,000 dollars. This is why Binance CEO Changpeng Zhao also sees a new all-time high for Bitcoin as likely in the next 2 years.

He thinks in longer time frames and says about the current crash: “You know, if people had been told in 2018, 2019 that Bitcoin would be worth $20,000 in 2022, they would have been very happy. In 2018/19, Bitcoin was $3,000 to $6,000”; Zhao had already made similar statements to Bloomberg. New investors are naturally unsettled and hesitate to invest – but the old hands of the crypto scene are convinced of both the idea of Bitcoin and the profitability of their investment. In an interview with The Guardian, Zhao explained that “significant price fluctuations” are to be expected because the entire crypto industry is still relatively new.

Come time, come all-time high

Experienced crypto experts like Zhao know that the price crash needs a longer recovery phase, which is why it will take a few months or even years to reach a new all-time high, after all “nobody can predict the future”. Zhao, however, confirms his confidence in cryptocurrencies by saying that he has no fiat money. Instead, he says, all his savings are invested in cryptocurrencies. The crash also caused heavy losses for numerous crypto billionaires like Zhao. Because in order to buy something, he must either pay in (heavily devalued) cryptocurrency or convert it into fiat currency, in which case a loss is realised again.

Uncertain investors should simply set the price chart to 3 years and look at the price development over time. With this perspective, they will see that Bitcoin’s current price is roughly where it was in autumn 2020, which in turn is also above the last all-time high from the beginning of 2018. So as you can see, it’s not all that bad…

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