Analysts are buzzing. Bitcoin, however, once they reach $100k, that’s the bottom. It is the opposite now—from the ceiling to the floor. Before we uncork the champagne and declare crypto utopia, let's ask a crucial question: Whose floor is it, really? Is this new “stability” a real rung to the economic ladder, or merely a gilded trap door for the most vulnerable?

$100K Floor, Who Really Benefits?

The new narrative being spun is one of unstoppable progress, of Bitcoin becoming a bedrock of the financial system. I see a dangerous undercurrent. Experienced investors holding a diversified portfolio could cavalierly withstand a drop from $110,000 to $90,000. What about the single mom, who having seen the ad, put her life savings in Bitcoin after being lured by the prospect of easy wealth? How do you answer the retiree who viewed crypto as a hail mary play to save their financial future?

This is not a prediction of whether Bitcoin will hit $120k. It’s about who gets to absorb the brunt when the unavoidable volatility hits. $100,000 feels like short-term support that could quickly be challenged at $95,000 or even $90,000. As Wendy O said, “That mini Black Swan event” — whatever it is — “can wipe that savings out in a heartbeat."

I can’t help but think of the Dutch Tulip Mania. Fortunes were made and lost on speculation. Though the tale is about the 1600s, human vulnerability to get-rich-quick schemes has not changed one bit. The promise of fast riches is a siren call, especially tempting to those living paycheck to paycheck. In reality, are we not building a digital equivalent to that tulip bubble, cloaked in the seductive rhetoric of technological disruption?

Freedom From Banks, Into What Exactly?

Bitcoin’s advocates like to market it as escape from the control of traditional banks and payment processors. An opportunity to overcome the gatekeepers and chart your own course. I understand the appeal. Distrust in banks is, unfortunately, often well-earned. That so-called “freedom” rings hollow. It creates an immediate threat of economic devastation for people who are least able to weather it.

Picture a future in which our healthcare system is financed entirely by meme stocks and every retirement plan depends on the next crypto craze. Sounds absurd, right? That is the road we’re traveling if we follow the “freedom” mantra without recognizing that freedom comes with danger.

Let us not overlook the geopolitical and economic chaos, either. Wendy O was on to something, we have to keep a pulse on what’s happening in real time news. Interest rate decisions, the situation in Israel and Gaza — all of these have an impact on Bitcoin price.

Safeguards, Not Just Slogans, Needed Now

The answer isn’t to vilify Bitcoin or crush tech innovation in general. Sure, it’s responsible regulation, it’s robust investor education, but a lot of it is just a healthy dose of skepticism. We need to:

  • Demand Clearer Regulations: Crypto exchanges need to be held to higher standards of transparency and accountability.
  • Invest in Financial Literacy Programs: Equip vulnerable populations with the knowledge they need to make informed investment decisions.
  • Promote Diversification: Emphasize the importance of diversifying investments and avoiding putting all your eggs in one volatile basket.

It’s time to consider smarter, more impactful and equitable investment strategies. These alternatives are often less speculative and more available to those with fewer means. Micro-lending platforms, community investment funds, and government-backed savings bonds would provide a much more secure alternative route to financial security.

Let's not forget the lessons of history. The South Sea Bubble and the dot-com crash remind us that speculation must have limits. These recent events are stark reminders for investors to tread carefully.

To ESG leaders and practitioners, it’s past time to look beyond the hype and engage in an open dialogue about the ethical ramifications of investing in Bitcoin. Without deeper examination, are we really on the path to a more equitable financial system, or are we just engendering a new set of victims? The answer to that question depends on what decisions we make today. Don't just jump on the bandwagon. Think. Ask questions. Advocate for policies that protect the vulnerable.