Bitcoin rose more than 3%, registering a record high of 123,000 USD on Monday.Dado Ruvic/Reuters
Amidst the optimism of “Procrypto” US President Donald Trump, Bitcoin hit a record high this year, many want to jump in to ensure they don’t miss the apparently immediate reward of Bitcoin. Are you being seduced? If so, “Why do I need to own a cipher?” This is a clear eye look with positive and negative
Crypto Bulls dismissed Bitcoin’s early 2025 plantations as a temporary blip, with subsequent rebound posing making even greater profits. Yes, Trump’s pro-cryptic stance is a potential bullish feature. Perhaps via some US Congressional proposals for code-friendly laws. Trump has already established America’s “strategic Bitcoin Reserves” and “digital asset stockpile.” US regulators have stopped investigating Coinbase, the country’s largest crypto exchange. Trump’s “Memecoin” investor dinner – his biggest buyer award for Memecoin – spurred the endless headline hype. Everything is full of hope.
It’s not just America. Canada helped set global standards by pioneering the world’s first Bitcoin ETF in 2021, providing clear tax and investment guidelines to enhance crypto trust and innovation.
It’s not just Canada. Almost every global financial hub will become crypto capitals. Hong Kong has over 1,100 crypto tile fintech companies that have risen five times since 2017. The UK’s Labour Government is aiming to strengthen its London position. Switzerland’s 2021 crypto framework has nurtured a booming startup landscape. Japanese officials are pondering regulatory reforms on cryptography.
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Additionally, some public companies are increasingly adding bitcoin to their holdings. It’s worth watching, but potentially promoting crypto-infected stocks, so these so-called “cryptofinance companies” total an estimated 135, most are very small and not even a major index. Additionally, one company, MicroStrategy, accounts for more than half of the company’s Bitcoin purchases.
Regardless of that, what happens when you own a code? Some say it’s diversified and protects the risks to normal currencies and assets. This is a “safe shelter” amid fears of tariffs. Or hedge inflation. With the Bitcoin supply closing, the Bulls believe they cannot devalue infinitely like regular currency. Many Bitcoins will probably be lost forever and reduce their total supply.
However, this ignores the overall infinite supply of cryptographic supplies. Think Ethereum, Dogecoin, XRP, Trump Memocoin, and more. All raise all questions about what will survive in the long term. Trump’s Memecoin has shown the whims of Crypto and has been sick since its inception.
Still, most bulls advertise huge gains. Since 2010, Bitcoin has skyrocketed by 159% per year until closing in 2024! It increased by 122% in 2024. Despite wild volatility in 2025, it rose 69.2% from the latest US election to July 11th. explosion!
But as 2025 already shows, there are pairs with big surges and deep crashes. Over the last 12 months of the decade, Bitcoin returns have ranged from 2,347% to minus 83%. It’s predictively a boom and a bomb.
Bitcoin first surpassed 100 US dollars on April 1, 2013, peaking a few days later. 71% of the failures continued. In the second half of 2013, it exceeded US$1,100. It fell by 84% within about 21 months. That was repeated in 2018. The existing boom continues from the -77% plunge from 2021 to 2023. This is several times more stock markets of size 1929-1932 crashed in just one year. Even the relatively “small” drop in early 2025 was 28.1%. It may be bad timing.
What drives these swings? Not fundamental – there’s nothing in the code. No industrial use, profit, sales or yield. As we saw in multiple Canadian cases in 2025 alone, there is crime and fraud in the industry. The global Omega Pro scam in the US in July is just the latest. And it says nothing about the February Bibit Hack, the biggest hack of Crypto’s history, or the infamous FTX scam in America.
Also, most “coins” are very volatile to be real currency. Yes, there are stub coins that are fixed in major currencies. However, “stable” is not necessarily so stable, and a lot of regulatory haze is covered. For example, Canadian securities managers define stubcoins as securities. This is confusing and considered a digital payment asset from the US and most of the world. Who knows if the CSA or someone else flashes first (or ever)?
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Inflation hedge? no. The 64% Bitcoin drop in 2022 saw Canada’s inflation reach 8.1% year-on-year and the US hit 9.1%. Bitcoin only failed inflation editing test.
So, what explains the swing of crypto? Changes in demand for others, complete halt. Pure emotions. Can you time the mood swings of their pure emotions? I can’t. If not, can you stick in the long term if Bitcoin is no dive again…and many times?
Emotions don’t help. With unstable assets, investors often buy after big profits like they do now, fearing they will miss out. When prices drop, they sell for fear of holding and lock in losses.
I have seen investors repeat this stupidity in volatile products and stocks for 50 years. Cryptocurrency is the volatility of the ultrasteroid stock market. Can you personally suck it all up in the stomach?
