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2 Reasons We Believe in Crypto MORE Today Than We Did 11 Months Ago

A great insight from @MilkRoadDailys email BTC

11 months ago... Bitcoin was 69,000. ETH was 4,800. And making money in crypto felt as easy as pushing one of these buttons.

Fast forward to today… ETH and BTC are both down over 70% and every week there’s a story about a scam

bankruptcy, hack, or rug pull. Last week - Pomp, one of the most popular Bitcoin bulls removed all references to Bitcoin from his Twitter bio, and people started to question - are the bulls changing their minds? Are the believers turning into… nonbelievers?

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Is the Milk Road going to pivot to a daily newsletter about…Milk? Short answer…No. Long answer….Hell no. But this isn’t just “rah-rah YAY crypto!” Here’s 2 reasons we believe in crypto MORE today than we did 11 months ago BTC BTCUSDT BTCUSD BTCnews

Reason 1 - Crypto is a cockroach Cockroaches can survive nuclear bombs. Crypto has had several nukes this year. The fastest growing stablecoin project…imploded and suddenly went to zero (Luna)

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2 of the most popular exchanges (BlockFi, and Celsius) faced insolvency and lost 90% of their value The most popular crypto hedge fund (3AC) went belly up and is being forced into liquidation by the British Virgin Islands BTC BTCUSDT BTCUSD BTCnews

The list goes on and on. Disaster after disaster hit in 2022, and yet... Crypto is still standing. Crypto has a history of disasters (Mt Gox, Silk Road, China bans it every year, etc) but it survives.

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2 - Money is a network effect What makes the dollar bills in your pocket valuable?

You can’t use dollar bills for food, shelter, water etc.. They are only valuable because other people believe they are valuable. Therefore, crypto’s value is not measured by price.

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Price is subject to lots of variables (eg. economy crashing, forced liquidations, etc..). Value and “valuation” are related, but not the same. For example, Apple & Amazon’s stock prices are down this year, but are the companies themselves worse? BTC BTCUSDT BTCUSD BTCnews

As the billionaire Dharmesh Shah (Hubspot) once told me: “Valuation oscillates up and down around value” Let’s take BTC. What is BTC’s true value? Here's a little formula we made (The number of people on earth who believe Bitcoin is valuable x the intensity of that belief BTC

Just look at the last 11 months: Bitcoin users grew to ~106M worldwide Multiple countries have made Bitcoin legal tender Major institutions like Blackrock, JPMorgan, & Goldman Sachs are all promoting Bitcoin to their clients

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Several S&P500 companies incorporated Bitcoin into their corporate treasury strategy Every country around the world is feeling the effects of financial censorship

or inflation. P.S - those are the two biggest problems that crypto solves compared to traditional currencies. BTC

The list goes on and on. 10 years ago, the idea of Bitcoin was pretty far-fetched. I would have given it less than a 5% chance of success. That’s flipped. Now I think there’s less than a 5% chance that crypto just fades away and becomes worthless BTC BTCUSDT BTCUSD BTCnews

. That’s an amazing reversal in 10 years. 80%+ of Americans know about crypto. 20%+ of Americans own crypto. Hedge funds hold it. Companies hold it. Countries hold it. Hell, even my mom literally holds 2 Bitcoin. So yeah - we ain’t going nowhere

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This post is based on this twitter thread.

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