Thanks for the candour, but please don’t panic.  Bitcoin needs people who are both idealistic, and shrewd about the gritty realities of the world.  It is a rare combination.

Our problem now is that the economic warfare is a means of propaganda warfare—which in turn supports economic warfare, as a feedback loop.

Everything needs a narrative nowadays.  The U.S. Dollar is a house of cards built of interlocking narratives.  People’s trust in banks is objectively stupid—but it is founded on a narrative.

Economically, the Bitcoin narrative is dead.  It is already.^*  That does not mean that Bitcoin is dead (LOL), but only that savvier Bitcoiners need to get out in front of foreseeable developments—lest they be perceived as deluding themselves with a Reality Distortion Field.

Some parts of the Bitcoin economic narrative are best discarded.  (I never believed in PlanB; and I always took four-year cycle theories with a grain of salt, beyond the obvious supply-side effect of the Halvings.)  Others are sound in the abstract, but need concrete discussions adjusted to fit reality.  For only one example, Bitcoin as a store of wealth is fundamentally sound—if and only if Bitcoin is treated as money, and we burn to the ground every foolish notion that treats Bitcoin as “like a stock”.  I have been saying for years that we need to get decoupled from stocks, and coupled to PMs ASAP.  (“I told you so.”)  That is largely a matter of narratives, and of making the narratives fit reality rather than living in fantasyland:  Bitcoin’s nature is not to be a stock.  Treating a fundamentally non-stock-like thing as “like a stock” must bring disastrous results, both for individual investors and for the whole Bitcoin market!

People obviously are not generally using Bitcoin as a hedge against inflation.  Because they see dollars as “money”, and Bitcoin as a stock-like thing that you trade for money.  Anyone who wants to brand me overly theoretical or idealistic:  I am the realistic one!  Your ideas have been demolished by reality.^*

If we apply a sort of Gresham’s Law to narratives about Bitcoin, I am confident that Bitcoin will recover on a firmer, more solid foundation so that it can rise to the heavens as it should.  Accordingly, this is only a setback.  I still look forward to my million-dollar bitcoins.

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^*  “No one who has held for at least 4 years has ever been at loss.”  200 WMA as a reliable bottom (I never believed in the PlanB-style voodoo, but I recognized it as a Schelling point).  Never falling below the previous cycle top.  As I write this, we are nominally >3% below previous cycle top and >17% below 200 WMA—and falling again, after what looks to me like a dead-cat bounce.  In real value terms, the dollar’s inflation has so horribly distorted the Bitcoin market that I think we have dipped as low as half the December 2017 top in December 2017 dollars—maybe lower.  These are already accomplished facts.  Nothing could worse kill a recovery than retreating into a Reality Distortion Field.