2022-2023 has been a great time for naysayers who have crushed, denounced, lambasted, and even proclaimed that Bitcoin (BTC) is “dead.” A “dark ages” where there seemed to be little hope that the leading cryptocurrency would rise again, or even surpass its previous highs.
However, BTC always seems to have the last laugh (at least, that has been the case over its 15-year history). Its price launched a massive rally in early 2024 that led to an all-time high of over $72,000.
The asset is back in the headlines; the hype surrounding it keeps growing every day, while reviews are harder to come by. Well, Peter Schiff still claims that BTC is a bubble ready to burst at any moment, advising investors to leave the ecosystem and get busy with gold, but we've heard that before, haven't we ?
Bitcoin has actually increased in popularity over the past few weeks, but this is likely a result of the price surge, which is once again attracting the masses. Yet BTC is much more than its dollar representation and has many fundamentals. In the following lines, we take a closer look at it and make a comparison with the epic fantasy novel (and trilogy) “The Lord of the Rings”.
Bitcoin is like Gandalf
Ahh, yes, the powerful wizard who bravely fought against Saruman and defended the Fellowship against the fiery demon Balrog. Gandalf's battle with the creature nearly cost him his life, but instead of disappearing into the shadows, he returned stronger than ever. And whiter.
Dear LOTR fans, consider Bitcoin Resistance one of your favorite heroes. Those of you who have been following the market know that the price of BTC fell below $16,000 in November 2022 (shortly after the collapse of crypto exchange FTX). A year and a half later, the asset is not dead; on the contrary, its valuation exploded by 350%.
A similar collapse also occurred in 2018, when BTC fell from almost $20,000 to $3,000.
BTC definitely looks like Aragorn
We can't talk about “Lord of the Rings” without mentioning Aragorn – the brave leader of men, the heir to the throne of Gondor and the one people follow and admire.
Well, Bitcoin has some of the same leadership characteristics. It is the largest cryptocurrency by market capitalization (by far), and its price fluctuations are often imitated by alternative coins. The asset is decentralized, obeys no one, and does not rely on intermediaries (such as money transfer companies or banks) to facilitate transactions.
Aragorn also seeks independence, opposing Sauron's ambitions to control the world through the power of the Ring.
What about the pointy-eared Legolas?
The Bitcoin network is also very precise, just like Legolas, whose arrows never miss the target. Its average block confirmation time is around 10 minutes and has been maintained for many years.
Bitcoin is extremely reliable, having experienced only two outages in a decade and a half, the second occurring over a decade ago.
Well, no one is perfect as a kid, and let's face it: we all think that Legolas may have become at least a little drunk after having one too many pints as a teenager.
His transaction time, however, is more akin to the speed of Legolas' short, vocal friend – Gimli – the proud son of Gloin. He may not be the fastest, but you know you can count on him.
Is Bitcoin “the precious one?” »
It can be seen this way and will become even more so due to an event called the BTC halving. This significantly reduces the reward received by miners for validating new blocks on the blockchain. The next halving (scheduled for April) will reduce the distributed reserve from 6.25 BTC to 3.125 BTC.
The process will repeat several times (approximately every four years) over the next century until all 21 million BTC are mined. This creates a scarcity effect and can potentially make each BTC more valuable over time, much like the desire to own “The One Ring to Rule Them All.”
Don't be like Smeagol!
Bitcoin is indeed more alive than ever and has multiple advantages, which is why it is easy to see how many consider it an attractive investment opportunity. However, people should always calculate the risks and take the bandwagon with a grain of salt. One of the golden rules of crypto states that investors should enter the ecosystem with an amount they are willing to lose (and no more).
After all, we saw what happened to Smeagol, who became obsessed with “The Ring” and ultimately died in the fires of Mount Doom alongside his “precious.”
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