Buying And Holding Bitcoin Is The Best Strategy To Navigate The Trump Tariff War
Today, The Wall Street Journal (WSJ) published an article attempting to discredit Bitcoin amidst the recent US, Canada, and Mexico tariff trade war, because bitcoins price has gone down in the wake of the news.
Bitcoin touted as a borderless, digital store of value is down more than 4% over the last 24 hours, after the White House instigated cross-border tariffs, the article stated. Cryptocurrencies were once promoted as investments that act independently of stocks, but in fact their moves often resemble outsized versions of broader market swings.
In the second sentence cited above, the WSJ attempts to diminish bitcoins value proposition by pointing out that bitcoins price is just correlated with other traditional assets.
What the author of the article doesnt share, though, is that bitcoins price is going to go down, and up, much more so than traditional assets, because its incredibly liquid, and its easy to buy and sell. But Bitcoin is a distributed network made up of miners, nodes, developers, and users on a technical level, it is quite different from other assets like stocks, as it has no central party controlling it.
Because of this, bitcoin has been a safe haven for those trying to navigate geopolitical fears. No one can just print more bitcoin out of thin air and inflate the supply, enforce any unwanted network changes overnight, or overthrow and stop the network from running.
But dont just take my word for it, take Larry Finks, the CEO of the worlds largest asset manager, BlackRock. Just a couple of weeks ago, Fink said that he is a true believer in Bitcoins value proposition and that if youre frightened of the geopolitical fears in your country, you can now have an international-based asset that operates completely independently from those 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
Sure, Bitcoins price will respond to news and events happening in the short term, causing large price actions to the upside or downside, but cherrypicking data in an attempt to make bitcoin look like its a bad investment is just bad reporting and misleading. Bitcoin has been the best performing asset of the last 15 years, and will likely continue to perform well due to its value proposition.
The important point to understand here is that while Bitcoin is a volatile asset reacting to daily events, over the long term, bitcoins value proposition is what takes its price higher and higher. For the first time in history, we have money that can not be hyperinflated. Bitcoin also allows people to transact across borders freely, without permission, giving users an escape hatch for anyone whose country is attempting to control them financially.
Forget short term price when it comes to bitcoin as a tool to help navigate geopolitical tensions. Over the long term, Bitcoins supply and demand will take the price higher than it is today. Mainstream media articles on Bitcoin have always missed the bigger picture and end up misleading the people who read them. As geopolitical tensions increase, bitcoin is the safest asset you can own.
This article is a Take. Opinions expressed are entirely the author's and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Text source: Bitcoin Magazine: Bitcoin News, Articles, Charts,
