Every time the price of Bitcoin goes up, there's huge enthusiasm. There's happiness. There's hope that the decentralized world is heading towards a new era of money, an era in which transparency will come first, value will travel fast and we're all be rich because we mined 5 years ago.
And then the correction comes. Price goes down (arguably to a higher level than before the surge) and we're all back to our daily chores.
It's like when you have an argument with your spouse. There's tension building up. There's pressure and the world seem like an ugly place. From that grey place, Bitcoin looks like a diva. Free, attractive, ready for anything, anywhere (please stay focused on the article, thanks). So you go for it. You start an affair.
But then your spouse starts to talk to you again. Maybe there will be a compromise. Or two. The tension goes down. Stability and comfort are kicking in. Well, we had our arguments, but we're together for how long? For, uhmm, ever? Let's give it another chance. Sorry, Bitcoin, it was fun while it lasted, but I'm going back to my wife now.
An Escape, Not A Solution
In economical terms, Bitcoin is a safe haven. Something to put your fiat money into, if there's some storm coming in. Like the storm that is still unfolding in China these days / weeks. There's no secret that Bitcoin price rose so high because there was a lot of buying from China. Based on the rumors of CNY devaluation a lot of rich people put their money into Bitcoin.
But Bitcoin is not yet powering a market. It's just like gold. You can't go to the supermarket and buy your groceries with gold. You buy them with fiat currency (in 99.99999% of the cases). So until Bitcoin will be accepted as a de facto currency in the big markets, the happiness should be postponed. And every surge in price should be taken with a little bit of salt. Or a lot of salt. A correction of more than 20%in one day (from $1200 to $1000) is enough to wipe out your life earnings, if you put all of them on the Bitcoin bull side.
So right now Bitcoin is more of a sign of unease in the economy, some tension that needs to be worked out, just like a domestic argument. If the fight is big enough, Bitcoin will get a significant share of attention and we'll all know that there's some real trouble going on in the world.
But then they work out their issues and Bitcoin loses its attention, mojo and marketcap. Sad Bitcoin. Sad.
And Steem? If Bitcoin Is The Mistress, Steem Is What?
Well, I don't know yet about that. We're still dating. But there is something going on there...
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
https://steemit.com/~witnesses