My End of Year Thoughts On Bitcoin and the Economy In General
Iāll admit that Iāve always been attracted to bear scenarios. Theyāre tempting. So it gives me great pleasure to write a bear post for my end-of-year thoughts.
1. Mid-2026 will most likely be a disaster.
We are ending an 18-year real-estate cycle and business cycle at the same time.
Add sky-high debt, half-empty office buildings, and Chinaās property mess still leaking everywhere. Perfect storm.
Add another match to the fire: AI white-collar layoffs.
Goldman Sachs says 300 million jobs worldwide are exposed. McKinsey says 60-70% of worker activities could be automated. IMF says 40% of global jobs touched.
Entry-level grads already canāt find work; middle managers next. Recession AI = no rehires, just higher unemployment and less spending.
That gasoline pours straight on the 2026 property crash. If youāre leveraged in property, good luck.
2. Bitcoin is nothing like it should be and has been abstracted into oblivion (same as they did with gold).
Iām a gambler and speculator and I think Iām pretty good at it. But this doesnāt blind me to two big problems:
FIRST: Bitcoin never became the electronic cash it was meant to be.
- Cash App and Venmo move money free so nobody bothers with BTC. Open either app, tap a contact, type $20, hit send. Done in 4 seconds. No seed phrase, no confirmations, no "replace-by-fee" drama. It settles in dollars (the exact currency you earn, spend, and owe rent in). People donāt learn 12-word phrases for the same reason they donāt learn Morse code to text. Real numbers: Venmo moved over $325 billion in 2025. Cash App quarterly inflows hit $76 billion in Q2. Bitcoin on-chain? 300,000-400,000 tx/day, $20-40 billion/day at most, but 90% of that is whales shuffling, not coffee money. P2P dollar apps beat Bitcoin at P2P by 20x because they removed every speed-bump Satoshi never saw coming. It was actually easy: one bank link, one QR code, zero volatility, zero tax forms for a $20 burrito split. Thatās why your group chat pays rent with Venmo and nobodyās QR-code wallet ever leaves the drawer.
-7 tx/sec = no scale.
- Wall Street paperized it, ETFād it, custodied it.
- Dozens of other technical blocks I wonāt list.
End result? Bitcoin just sits there like gold you can teleport. Wall Street built a vault, not a wallet.
Second: Speculation doesnāt improve lives. Utility does. Iām a speculator saying this. Price going up feels great in my wallet, but it doesnāt put food on anyone elseās table. Real value is created (and kept) when something has utility and improves lives of everyone involved. Bitcoin doesn't do any of that right now. It's a pure speculative money-shuffling game.
3. The Bitcoin bull cycle will end in November or December 2025 (if it hasnāt already).
We already hit $126k last month (October 6 ATH at $126,279). That might have been the bull-cycle top. Could also surge at the end (which it has done in the past) or just peter out, which it did last cycle. Either way, 70-80% drop incoming after December 2025. Bottom at $30k-$40k-ish in November 2026 if the top is already in. If we slip into a full depression, it stays lower longer.
One extra Iām willing to stand by:
MicroStrategy never sells a single bitcoin (unless the US government forces a strategic reserve fire-sale or something equally insane). 641,205 BTC today. All converts unsecured, zero LTV covenants, no margin calls. First big maturity not until 2027-28. At $25-30k BTC their stack is still worth $16-19 billion against ~$8 billion debt. They just dilute shareholders with the $40 billion ATM shelf left, roll the notes, and keep stacking. Stock -90%, copy-cat treasuries blow up, Saylor becomes the cockroach king. Only dies if BTC lives below $15k for four straight years (which could happen if we hit a depression-like scenario) BlackRock or a Bitcoin mandate bails him out first.
I'll quote this post in 12 months and see how it held up.