Feinstein believes that despite the recent fluctuations in Bitcoin's price, the cryptocurrency's ecosystem has experienced significant growth and adoption since its early, tumultuous days. He emphasizes that the real value of Bitcoin lies in its ledger, which he argues is still massively undervalued.
Feinstein also points out that the current dip in Bitcoin’s price is "artificial," presenting a buying opportunity for investors.
The Impact of Mt.Gox and Recent Price Movements
Earlier today, Bitcoin's price fell to around $56,700 before rebounding slightly to approximately $58,200. This drop was attributed to several factors, including miner capitulation, a sell-off by the German government, and issues related to Mt. Gox.
Feinstein commented on these developments:
“Today the Mt. Gox Bitcoin is being sold and Bitcoin has ‘crashed’ from mid $60,000 range to the mid $50,000 range. If you are new to this space and have not had to witness complete chaos for the first 8+ years of Bitcoin, this drop seems meaningful. It is not.”
Reflecting on his own experience, Feinstein noted that he entered the cryptocurrency space in 2012 and made his first Bitcoin transaction on Mt. Gox on April 17, 2013.
The Undervaluation of Bitcoin
Feinstein observed that Bitcoin was not taken seriously by many in its early years. However, the scenario has changed drastically today. The market now has Bitcoin ETFs, governments holding BTC, and endorsements from billionaires and presidents. This widespread acceptance reinforces the idea that Bitcoin is here to stay.
Since Bitcoin's inception on January 3, 2009, its price has rarely been as low as it is today, despite global support for the cryptocurrency reaching unprecedented levels.
“And what is still massively undervalued about Bitcoin is that the immutable ledger that [it] runs on is infinitely more valuable than the Bitcoin itself, the ledger blockspace is still not priced in. Bitcoin only has value because the rails it runs on is the most important accounting ledger of all time and the only true record of history in humanity,” he wrote.
Feinstein's insights highlight the enduring significance of Bitcoin's foundational technology, suggesting that its true potential is yet to be fully realized by the market.
