Why John McAfee Backed Down On His Bitcoin Bet

In a recent tweet, John McAfee retracted his bet to eat his own d*** if the price of Bitcoin doesn't reach 1 million by the end of 2020.

Of course we didn't expect him to actually do it, but it's still disappointing to see him back down on his prediction. Wouldn't it be funny if the price did in fact reach 1 million by the end of the year?

We are already seeing an increase in Bitcoin's price due to geopolitical tensions in the middle east, and it's expected that a global economic recession will unravel throughout the year.

All of this could have a significant impact on Bitcoin's price. We've seen Bitcoin make parabolic moves in the past, so while one million may seem far-fetched, it's not out of the question.

Anyways, based on John's tweet, it seems he's less bullish on Bitcoin compared to other coins that have features such as "privacy, smart contracts and distributed applications". He compared Bitcoin to the Ford Model T, the first manufactured automobile.

While Bitcoin may not be the flashiest coin on the market, it still has a lot going for it. It has a solid track record, worldwide brand recognition, and gets promoted often by prominent people who've placed their wealth in it.

Regardless of Bitcoin's shortcomings, if the people simply believe that Bitcoin is the best, it will remain the most valuable cryptocurrency. Similar to how the fundamentals behind the US dollar are terrible, but people still put their faith in it. If I've learned anything over that past ten years, it's that the value of money is more based on belief than fundamentals.

Could other projects take market share from Bitcoin? Of course. Let's not forget that crypto is still very much an untapped marketplace. We've seen coins like Ethereum nearly surpass Bitcoin's market cap in the past. What's to prevent a similar event from taking place in the future?

We must also take into account the psychology of the average Joe, who sees Bitcoin as too expensive and feels he's "missed the boat".

Newcomers are more likely to enter the crypto world via platforms that pay them for their participation (ie: STEEM, BAT, or gaming tokens like MANA), rather than open an exchange account, go through KYC and transfer thousands of dollars from their bank account.

Besides, platforms like STEEM is where the real economic value is, and where capital will flow eventually.

Bitcoin may always retain the reputation of "digital gold" and perhaps that's where people will end up storing the income they earn via other platforms, but I doubt it will continue to retain 70% market dominance indefinitely.

John must have realized he was risking too much on such a dynamic marketplace, and therefore backed down on his bet. The gyrations we'll see in the crypto markets over the following months and years will be exhilirating indeed. Fasten your seatbelts :)