Don’t Let Bad-Faith Naysayers Diminish the Scope of Bitcoin’s Huge Advancements in 2021
5 events from 2021 that will help open your eyes to the need to develop your critical thinking skills.
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The Bitcoin revolution continues to move in the right direction. Block by block, Bitcoin is progressing at its own pace. Sometimes the progress appears to be immense. At other times, it is more modest, and some people feel that Bitcoin is not evolving fast enough. Given all that Bitcoin has already accomplished, and especially given its incredible potential for the future, it makes sense that some people are impatient.
It's the price of success, if I may say so. When you are the undisputed king of digital currency as Bitcoin is, expectations are necessarily very high.
This is all-natural and not embarrassing. What is a little more troublesome is to see Bitcoin's fierce opponents constantly trying to downplay Bitcoin's accomplishments. This instills doubt in the minds of the general public, and then it is very difficult to help the general public understand Bitcoin.
I'll give you a few examples about the year 2021 that should alert you to the need to develop your critical thinking skills at all times regarding Bitcoin, the economy, and money in general.
January 2021 was marked by two misleading announcements by the general media: a Bear Market and double spending on the Bitcoin network
In January 2021, when the price of Bitcoin corrected to $29K, CNN was already announcing a Bear Market, even though the price of Bitcoin had just exceeded $40K only a few days earlier. The haste with which these general media write their articles shows that they are only trying to attract readers by offering them some content of very poor quality.
Bitcoin was far from being in a Bear Market as it went on to exceed $64K in mid-April 2021. Again, you should be wary of making snap judgments. Take a step back.
At the end of January 2021, some media were still making headlines by announcing that Bitcoin was double spent. To hear them tell it, it was the end of Bitcoin. What was announced as the end of Bitcoin was nothing more or less than a normal but extremely rare event: stale blocks.
With the Proof-of-Work algorithm, all nodes automatically switch to the heaviest valid chain. This allows them to synchronize their local ledger state (who owns what) with that of everyone else.
Occasionally, two mining pools find a new block at about the same time, and these blocks have the same accumulated difficulty. Then some nodes switch to one block, and other nodes switch to the second block. For a short time, the Bitcoin network is then bifurcated. But odds are that the bifurcation is resolved once the next block is found.
For example, imagine that some miners were mining on block 666833-A and some miners were mining on block 666833-B. Once one of them found block 666834, this blockchain will have a higher accumulated difficulty, and all nodes still on 666833-A will automatically abandon their blockchain and switch to the new canonical one.
This is exactly what happened in the Bitcoin network on January 20, 2021, as both SlushPool and F2Pool found block 666833 at the same time. The tie was broken after Binance’s mining pool found block 666834 and F2Pool’s block became stale.
Now stale blocks occur relatively frequently and are absolutely nothing to worry about. Again, developing critical thinking skills and waiting before making hasty judgments based on emotions is key.
While many were wasting time on China, the real signal in 2021 was from El Salvador
Remember again what happened in May 2021 when China banned Bitcoin mining. Panic set in for some who thought the Bitcoin network would not survive. Others said it would take years before Bitcoin's Hash Rate would return to its pre-ban level by China. The price of Bitcoin collapsed, and those who believed in Bitcoin took the opportunity to accumulate more.
By the end of 2021, the Bitcoin Hash Rate is at an All-Time level, and the great exodus of Bitcoin mining from China to America has restored the situation. America is now the dominant area in Bitcoin mining. The price of Bitcoin reached a new ATH on November 10, 2021, with a price of $69K.
On September 7, 2021, Salvador became the first Bitcoin nation in the world. A unique event in human history. President Nayib Bukele decided to give his country a chance to change its future for the better by seizing the Bitcoin opportunity.
The IMF and the World Bank have done everything to discredit this initiative of a sovereign country. Politicians and economists even went so far as to say that it meant nothing to Bitcoin because El Salvador was only a small country.
It is this contempt for the powerful in the current system that sidelines countries like El Salvador that led Nayib Bukele to see Bitcoin as his only chance for a better future for his people. Many other countries will follow the path paved by El Salvador in the months and years to come. It is only a matter of time.
The good thing here is that it will completely reshuffle the deck in terms of wealth since it is a safe bet that it will be the poor countries that will seize the Bitcoin opportunity before the rich countries. A great thing!
Taproot activation will be the foundation for future great innovations on top of the Bitcoin Blockchain
Among the many misconceptions about Bitcoin that are constantly propagated by its opponents, but also by Altcoiners, is the idea that Bitcoin is not evolving and that its technology is outdated. The best answer was given in November 2021 with the activation of the Taproot upgrade which will allow Bitcoin to move into the future.
A future in which Taproot will be the foundation for major future developments based on top of the Bitcoin Blockchain. Expect to see a lot of products and services developed in the smart contract area in the coming months.
Bitcoin is evolving well, but it is evolving at a pace that guarantees the security of the hundreds of billions of dollars that are placed within it. The slightest bug introduced in the Bitcoin protocol in haste would be catastrophic. The fact that Bitcoin has never been hacked since its inception is no accident.
This is because of the way the developers in its community evolve its source code. They take every precaution to ensure that everything runs smoothly on the mainnet.
This year, 2021, has once again seen a lot of progress for the Bitcoin revolution. While opponents of Bitcoin may try to downplay all of these accomplishments, those who have developed a true critical mind over the months and years of their Bitcoin adventure will have seen this.
It also shows you the distance you will have to travel in the months and years ahead to fully enjoy Bitcoin. Indeed, you can be sure that as Bitcoin's success grows over this decade, so will the number of false attacks.
By keeping the long-term goals of the Bitcoin revolution in mind in all situations, you'll be able to sort out the real from the fake for yourself. And if in doubt, never hesitate to ask me a question via the comments or email. I'll be happy to share my opinion with you.
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