Hold on to Bitcoin

Bitcoin is down over 30% to 14,000 USD.

Time to sell, right?

Short answer: Not so fast.

Bitcoin has scalability issues, outdated technology compared to other cryptos and a governance issue: who decides which direction to take to fix these issues?

Several forks have been done with mitigated success: bitcoin gold, bitcoin cash and others that most of us haven't even heard of.

So what's remaining for Bitcoin?

What can make it a long term winner when new cryptocurrencies labeled "3rd generation", "scalable", "no transaction fees" like IOTA, CARDANO and many others are knocking at the door ?

#1. The first mover advantage

Bitcoin has been the first widely used cryptocurrency and not any altcoin will ever change that.

Not important? Wrong.

While more and more short-term traders are getting into crypto, a real community will always remain behind bitcoin. This community includes developers, adopters, businesses.

This community is here for the long run, and is growing.

#2. Bitcoin is the "new gold"

While it is clear that Bitcoin itself isn't gonna replace payment methods in a very near future due to its scalability issues, Bitcoin will remain a great currency for medium and long term investment.

Gold has had this function in the past, but as the demand grows for de-centralization of capitals, it will be more convenient to hold crypto wallets at home than gold bars:

• easier to hide, easier to carry
• much harder to steal by the average Joe that needs a PIN code

And what's the only way to know that your investment won't go down on the long term?

Short answer: that currency won't be created out of thin air.

This is one of the beauty of bitcoin: the bitcoin maximum supply is fixed to 21,000,000 BTC and can't be increased.

What does it mean? That as long as people believe and keep investing in bitcoin, the value per bitcoin will increase as the amount of bitcoins will remain the same.

The issue for the crypto world is: as more and more new cryptos are released, the overall supply of crypto coins increases and in the grand scheme of cryptos, it becomes similar to banks creating money out of thin air.

By accepting that Bitcoin is there for the long run, it gives people a sense of trust and safety investing in it and in crypto in General. It allow newcomers to get a first positive dive into cryptocurrencies.

It will not and should not prevent the fact that a new great altcoin becomes THE crypto payment method in the future.

But a stable and continued growth of Bitcoin as an investment currency is essential for the long term acceptance and adoption of cryptocurrencies by the public.

It is in the interest of every crypto investor to keep the original Bitcoin alive and healthy.

Let me know your thoughts.