Crypto Jebb responds to this by saying that Bitcoin is thermodynamically in order. By which he means that the energy that people put into Bitcoin does not leak away through inflation. This has to do with the absolute scarcity of 21 million units that characterizes Bitcoin. Although Bitcoin currently still has an inflation rate of 6.25 Bitcoin per 10 minutes, which amounts to an inflation of about 1.7 percent on an annual basis. It will take a while for Bitcoin inflation to reach zero.
The adoption of Bitcoin
Melker also indicates that it is important not to be distracted by short-term price movements. As a result, it may appear that adoption is slowing down, while Bitcoin is currently being adopted faster than the internet. “It’s a hockey stick curve that goes parabolic,” Melker told Cointelegraph.
Both Crypto Jebb and Melker expect Bitcoin and the rest of the crypto market to simply need more time. Especially because people are conditioned to take as little risk as possible and that, of course, does not rhyme with the volatility of the crypto market.
More falls to come
When asked about his view on the Bitcoin price for the short term, Melker indicates that he is not very optimistic. “The current state of the market is bad and in the short term it’s important to remind yourself that ‘the trend is your friend’ and that new corrections are likely,” said Melker.
Once the market is used to the new reality, with which Melker mainly refers to the higher interest rates that the Federal Reserve is now introducing to fight inflation, we can look up again. However, we have not yet reached that point and in that regard things still look bleak for the short term.