Ex US Treasury Secretary and World Bank Chief Economist Lawrence Summers previously stated on Bloomberg that digital currencies are here to stay and that Bitcoin could play a crucial role in trading on the Internet.  Summers believes that, like gold, Bitcoin could be used as a hedge against inflation and develop into digital gold.

Summer’s remark comes amid a flurry of market turmoil, ranging from China’s prohibition on Bitcoin to the BTC network’s energy use issue. Many new traders and investors flocked to buy digital currencies to their portfolios during the bull market of 2021; most people got in to earn quick money and are now panic selling due to news stories designed to discourage potential investors. For instance, China’s prohibition on Bitcoin is nothing new; they’ve been doing it since 2013.

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The discussion about whether the Bitcoin network is harmful to the world initially sparked controversy in 2018, but it was subsequently traced down to a single site with no evidence to back up the allegations. There’s no doubt that the network uses a lot of power, but the bulk of it comes from renewable energies, and with each lowering, the network’s energy use decreases as renewable energy use increases. Gold mining and the banking system, on the other hand, consume even more energy.

FUD Has Historically Been Associated With Bitcoin Bull Markets

And if the bulk of the current FUDs have been debunked previously, new customers frequently fall victim to such reports and begin the panic sale.

Every bull market has a series of significant retracements, and this bull market is no exception, with the market seeing its first big market correction of over 40% after nearly four months of steadily reaching new ATHs. At least 3-4 big retracements of 40% or more have occurred in recent bull periods.

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