Today, The Wall Street Journal (WSJ) released an article aimed at undermining the credibility of Bitcoin amid the ongoing tariff trade conflict between the US, Canada, and Mexico, highlighting the recent decline in Bitcoinโs pricing.
The article remarked, โBitcoinโhailed as a borderless digital assetโis down more than 4% over the last 24 hours after the White House enforced cross-border tariffs.โ It continued, โInitially promoted as investments that function independently of traditional stock markets, cryptocurrencies have exhibited patterns that closely mimic broader market fluctuations.โ
The second statement serves to diminish Bitcoinโs perceived value by suggesting that its price moves in line with traditional assets.
However, what the writer overlooks is the reality that Bitcoin experiences greater price volatilityโboth upwards and downwardsโcompared to traditional assets. This is due to its high liquidity and the ease with which it can be traded. Unlike stocks, Bitcoin operates as a decentralized network composed of miners, nodes, developers, and users, making it fundamentally distinct as no single entity governs it.
This decentralization has turned Bitcoin into a refuge for individuals looking to navigate through geopolitical uncertainties. It is impossible for anyone to simply create additional bitcoins out of thin air, artificially inflate its supply, impose sudden changes to the network, or disrupt its operations.
For validation, one can look at the perspective of Larry Fink, the CEO of BlackRock, the worldโs largest asset management firm. Recently, Fink expressed a strong belief in Bitcoinโs value proposition, asserting that for those concerned about political instability, Bitcoin offers an asset that functions independently from such local tensions.
JUST IN: $11.5 trillion BlackRock CEO Larry Fink says Bitcoin could go up to $700,000 if there is more fear of currency debasement and economic instability.pic.twitter.com/WOXclAsjDP
— Bitcoin Magazine (@BitcoinMagazine) January 22, 2025
https://platform.twitter.com/widgets.js
Indeed, Bitcoinโs price may fluctuate in reaction to immediate news and events, leading to significant price movements in either direction. However, cherry-picking data to suggest that Bitcoin is a poor investment exemplifies misleading journalism. Over the past 15 years, Bitcoin has consistently been the top-performing asset and is likely to maintain this trajectory based on its inherent value.
The critical takeaway is that while Bitcoin is a volatile asset punctuated by daily events, its long-term value proposition drives its increased pricing. For the first time in monetary history, we have a form of currency that cannot be subject to hyperinflation. Bitcoin also facilitates cross-border transactions without requiring permission, providing an alternative for individuals in regions facing financial control.
Instead of fixating on short-term price outcomes, consider Bitcoin as a strategic tool for addressing geopolitical challenges. In the long run, the dynamics of Bitcoin’s supply and demand will inexorably boost its price. Coverage of Bitcoin in mainstream media tends to overlook the broader context, misleading their readership. As global political tensions rise, Bitcoin remains one of the safest assets to hold.
This article is a Take. The opinions expressed are solely those of the author and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
