2020 was unforgettable, especially for Bitcoin. To help memorialize this year for our readers, we asked our network of contributors to reflect on Bitcoin’s price action, technological development, community growth and more in 2020, and to reflect on what all of this might mean for 2021. These writers responded with a collection of thoughtful and thought-provoking articles. Click here to read all of the stories from our End Of Year 2020 Series.
Congratulations to everyone who made it through 2020.
Nearly everyone was affected in some way by the relentless changes that occured around the world this past year. What was considered a booming economy has taken a massive hit from the results of lockdowns, riots, government restrictions and self-proclaimed leaders who ignore their own mandates. But from these catastrophes, with overbearing politicians and media outlets continuing to distract the masses, a group of individuals came out of this bloody affair stronger and richer.
We must recognize all of the Bitcoiners who continued to stay true to their convictions and values in 2020 during the March 12 selloff at $3,800, to then ride the BTC price all the way to more than $23,000. Take a moment to reflect on your hard work this past year and all of the great people you have bonded with along the way. A special welcome must also be made for all of the newly-minted Bitcoiners who are now part of the 2020 class. You all could not have picked a more opportune time to join the ranks among the Bitcoin elite.
Despite everything that has occurred throughout the year and the disparity between political leanings, it is important to always keep in mind the things that we control as individuals, rather than as a collective. Nobody is going to help you as much as you are willing to help yourself.
Many Bitcoiners have taken this advice to heart in order to avoid being caught up in many of the situations that unraveled throughout 2020. Bitcoin is a thriving community, but each individual is rewarded based on how much they contribute and accumulate. There are no winners or losers selected by politicians. Proof of work is not propped up by fictitious “points,” printers going brrr or free helicopter money. There are no handouts here, but hopefully readers of this article can take away a few key insights on making the most of the Bitcoin climate today: How to take advantage of the accelerated gig economy, institutional adoption of Bitcoin, excessive money printing and the decline of available bitcoin on exchanges.
Leverage The Gig Economy And Stack More Sats
The pandemic has brought on a wave of change for many, especially for those with jobs that require them to be physically present.
Those who are able to adapt quickly and pivot into more remote work are going to see the most benefit from lockdowns. If one is also able to gain multiple gigs or streams of income with help from their online social circles, they are setting themselves up for a very prosperous future. These types of jobs may include: content creation, videos, lectures, writing, podcasting, arts, design, programming, ecommerce, consulting and anything related to the digital space.
If you or someone you know is looking for an online job, the best time to start building up these skills was any time prior to the pandemic — but the next best time is to start now.
A rapid transition to remote work has occurred and it is important to acknowledge this trend more than ever. If you are fortunate enough to currently work from home, you have most likely experienced an ample amount of time saved throughout the day. Commuting, office politics, ego, the appearance of looking busy and constant distractions from coworkers are now non-existent during a work day. There are many in the ranks of management who have prolonged this necessary change but fortunately, they are seeing that tasks can still be accomplished from anywhere and do not require an employee to be in one location to do so.
As great as this corporate evolution appears to be, it is important to keep in mind that remote work regulations may be coming down the pipeline in the near future. These regulations will stifle and slow down progress for corporate employees. Companies may consider major pay cuts in the near future based on your place of residence. It may even go as far as having employees pay multiple tax rates for your current residence and for the location of your employer. Crazier things have happened, so be prepared for these tax implications to be brought to the attention of those in power.
The best way to offset this potential tax is to consider multiple streams of income by working for yourself, or at the very least have multiple side gigs that can be accomplished online. Relying on one source of income is going to become more and more risky, if it was not too risky already.
Institutional Adoption And Involvement
On a more exciting note, possibly the best news of the year for bitcoin and its holders was the institutions that have not only had to adapt to employees working remotely, but also seriously reconsider what their reserve assets should be in a hostile monetary environment for the U.S. dollar.
Microstrategy, Square and many other companies have built up sizable positions in bitcoin to stave off the threat of losing purchasing power. PayPal has also entered the space in a big way by providing access to purchasing bitcoin and other crypto assets for its millions of users and merchants. PayPal users are currently unable to withdraw their purchased bitcoin onto a personal wallet, but it is overall a great step in the right direction for worldwide adoption.
We joke and meme about bitcoin’s price going up all the time and how this trend will fix the world. But it’s all true because it becomes less and less of a joke as time goes on. Over 20 percent of all U.S. dollars in circulation were printed this year and the Federal Reserve continues to increase that number.
Simultaneously, the number of bitcoin on exchanges continues to decrease.
There is also increasing demand from institutions and high-net-worth individuals to continue purchasing bitcoin, even at all-time highs.
All three of these factors alone are enough to ensure that the greatest savings technology of all time will continue to operate as intended.
What To Look Forward To In 2021
For active members in the Bitcoin space, most are aware of the $100,000 to $300,000 predictions for the bitcoin price that have been discussed throughout a range of memes and podcasts.
Many signs and bitcoin’s current projections signal that we are on course to reach these prices. Expect more naysayers and traditional financial “experts” to continue spouting FUD against all positive developments. Stay the course and keep accumulating consistently with a DCA service or other means that allow you to self custody. Nothing in life is guaranteed, but what is guaranteed in these hostile macro environments at least is that governments will not stop printing money.
The best (and only) solution to preserve one’s wealth is through Bitcoin. In 2021, it is highly likely that more unpredictable events will continue to happen. In a world of constant uncertainty and bad actors trying to control large populations, Bitcoin is the one shining beacon of salvation because it is the most predictable and transparent system known to man.
In no other industry or space has there been as much optimism and creativity to propel humanity to a bright future. The Bitcoin evangelists, plebs, cyber hornets, honey badgers, unique beasts and everyone in between continue to educate world citizens on how to take back their sovereignty.
This is a guest post by Deniz Saat. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.