Up until recently, I've been a Bitcoin bull. And in the long term, my guess is that it remains a good hedge against debasement of the U.S. dollar. But on a near term basis, I'm having trouble finding justification for owning Bitcoin.
On a day when the drums of war were beating loudly, and most commodities increased in value, Bitcoin fell in price. The price of Bitcoin dropped from $US43,571 to $US42,355 (-2.8 %) on 2/11/22 according to CoinMarketCap.
Given the following, at the moment it seems easier to make the case that Bitcoin is a Ponzi scheme than a good investment vehicle.
1) Bitcoin was not a crisis hedge when a Russian invasion of Ukraine was announced as being immenent
2) Bitcoin has not been an inflation hedge during the past few months
3) Over the short term, Bitcoin's price has been correlated with the Nasdaq, thus it is not currently acting as a stock market hedge
4) It is not a very practical transaction vehicle
5) There is significant regulatory risk
However, given the long term upward price momentum of Bitcoin and the crypto's Phoenix like rise from past dips, I not ready to give up on it. But unlike past dips, I'm not buying this one.
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