The Bitcoin Transition in Today’s Context

The Bitcoin

Should you Still Believe and Invest in Bitcoin?

In order to understand Bitcoin, one needs to be familiarized with our modern financial system, and what led to the creation of Bitcoin in the first place. It is only by doing so that its value and importance can be really grasped.

Satoshi Nakamoto, inventor of Bitcoin, once said “The root problem with our financial system is that banks must be trusted to hold on to our money, but they lend it out in waves of credit bubbles with barely a fraction of the reserve”. From a Bitcoin perspective, whenever such a situation occurs, it leads to a monetary crisis that tends to involve almost everybody, and that Bitcoin could prevent. Bitcoin can protect one’s assets in more ways than one. How so?

A walk down memory lane

Let’s take a look at the recent past from an economic perspective. The 2008 financial crisis for example was due to banks taking on too much leverage.  This crisis exposed the frailties of the global financial system. As everything in the financial system is interconnected and deeply intertwined, the bankruptcy of one bank, Lehman Brothers in this case, affected every part of the world, and everything came crashing down like a house of cards. And since history is bound to repeat itself, just like it always does, the centralization of the monetary system constitutes a major flaw, as it guarantees to embark all depositors and investors in crashes whenever a government’s monetary policy collapses.

Bitcoin’s role in all of this

Bitcoin was specifically designed to address this problem, as it was devised making sure it is neither created nor administered by any third party. Satoshi Nakamoto came up with a technological solution based on a devolved payment process, open-source and peer-to-peer. By being completely and utterly decentralized, Bitcoin protects investors from the house of cards effect. This alone constitutes more than a valid reason for Bitcoin-fanatics/believers to adhere to this decentralized system.

Another reason would be that throughout the years, Bitcoin has been through a roller coaster, and this past decade sure was a wild ride, but still managed to make it through. Bitcoins have been scammed, hacked and robbed, as well as being shaken by a level of volatility that has left many people dubious when it comes to its practicality, and understandably so! But despite all the vicissitudes, Bitcoin has survived the turmoil, and this is exactly what Darwin’s theory of survival of the fittest implies.

The end result is: Bitcoin survived all of these events that many well-established organizations could have failed to do; and this is inherent proof of its resilience and strength.

Nevertheless, Bitcoin also has downsides that shouldn’t be ignored. Whether you are a fervent advocate of Bitcoin and cryptocurrencies in general, or not, it is safe to say most people will agree that Bitcoin could be a dangerous bet, due in particular to its volatility. And so, without proper regulations, it cannot unleash its full potential. Regulations would help the Bitcoin infrastructure develop business practices. 

Bitcoin + Regulations = One solution to Bitcoin Achilles heel

Many experts consider that lack of regulations is the weak spot of Bitcoin, Melanion Capital came up with a solution that allows you to get indirect exposure to the Bitcoin landscape through listed companies that operate in the Bitcoin sphere, all the while benefiting from the traditional finance framework. The investment solution bridges the gap between traditional finance and the crypto world with a regulated solution.


This article and the strategy it outlines, are provided for informational purposes only. The content within is not intended to be financial advice and should not be taken as such. The historical performance of Bitcoin ETFs is no guarantee of future results.

Investing in Bitcoin ETFs involves a high degree of risk, including the loss of all your investment, and may not be suitable for all investors. Market conditions can vary significantly, and the volatility of cryptocurrency markets can lead to rapid and substantial losses.

Readers are advised to conduct their own due diligence and consult with a professional financial advisor before making any investment decisions. The views and opinions expressed herein are those of the author and do not necessarily reflect the official policy or position of any financial institution or investment service.

Past performance is not indicative of future results. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation.

The author and publisher of this strategy are not responsible for any financial losses or gains you may experience. Investing in the markets is speculative; it should only be done with risk capital that if lost will not significantly affect your lifestyle.

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