Bitcoin breaking through $87,000 – High-fives all around, what are you talking about? Hold on. Before you get too excited, let’s discuss what that number really means. It ain’t all Lambos and early retirement. There’s a more nefarious side to this parabolic increase that’s too often conveniently ignored.

Is This Rally Built to Last?

On-chain data is flashing warning signs. "Heightened volatility expected as Bitcoin approaches $90,000." That's code for: prepare yourself, because this ride could get bumpy – and fast. We've seen this movie before. Follow that euphoria, that breathless pronouncements of a glorious new techno-future and then whap – a vicious correction that leaves latecomers holding the poisoned chalice. This isn’t to undermine the idea that Bitcoin can’t go much, much higher, but it’s just foolish to conclude a more severe pullback is impossible. Or better yet, are you really ready for a 30%, 40%, or 50% decline? Most people aren't.

Think about it. Are these gains sustainable? Or is this just another pump fueled by speculation and FOMO, driven by those who've already profited handsomely from previous cycles?

Greenwashed Gains at Whose Expense?

Let's talk about the elephant in the room: Bitcoin's energy consumption. A number of stakeholders recently cheered the increasing trend of renewable energy usage in the mining industry. The reality is that the majority of Bitcoin’s hashrate continues to be significantly based on fossil fuels. This isn't just an abstract environmental concern. It has real-world consequences. Rising energy demand increases stress on local power grids which can result in increased electricity costs for all consumers. Are your bitcoin gains really worth making your neighbors’ lives worse and possibly raising their energy bills?

It's easy to celebrate "financial freedom" when you're not the one paying the environmental price. Let’s face it—Bitcoin is not the perfectly decentralized, environmentally-friendly currency we all hoped it would be. More frequently, this narrative is a tightly wound façade.

Wealth Transfer, Not Wealth Creation?

The conventional Bitcoin narrative is that it’s about democratizing finance. Look closer. Who are the real winners from these unprecedented price jumps? Early adopters, institutional investors, and whales that can crash a market with one tweet. At the same time, everyday Americans are often marketed to at the top, only to be left holding the bag when the inevitable correction comes.

This isn't democratization. It's wealth transfer. A strict transfer from the rubes to the already rich. Charles Schwab preparing to launch spot crypto trading in the next year. Great news for Schwab, great news for their wealthy clients, but what about the average retail investor who’s chasing get-rich-quick schemes?

Take for example Slovenia’s plan to implement a 25% tax on capital gains from the sale of cryptocurrencies starting in 2026. On their face, these measures might sound equitable. Yet, they would disproportionately bite smaller investors—many of whom rely on crypto investments for their everyday income—thereby increasing the wealth gap.

The Human Toll Behind the Headlines

We go deep into price charts and technical analysis. In the process, we ignore – or worse, accept – the human cost of crypto speculation. Scams, hacks, and rug pulls are everywhere in the crypto space. We need to end D.C.’s willful ignorance, because ordinary people are losing their life savings on these misguided investments. These are not just examples of a few bad apples, they represent a systemic issue.

Your centralized crypto exchange just crisis. They even needed to cancel trades and reimburse users due to “abnormal trading” on the perpetual futures market for VOXEL. This is just a brief introduction to the risk and volatility of the crypto space.

Keep in mind that behind every price chart and outlier increase, there are real people leading real lives with very real financial vulnerabilities. It's easy to get swept up in the hype, but it's crucial to remember the potential for harm.

A Call for Cautious Optimism

I am not anti-Bitcoin. I'm pro-awareness. I am an enthusiastic advocate for blockchain technology, but I am an even bigger advocate for responsible investing and good old critical thought. Before you dive headfirst into the Bitcoin frenzy, ask yourself:

  • Am I making rational decisions, or am I being driven by fear and greed?
  • Have I considered the potential downsides and risks?
  • Am I prepared to lose everything I invest?
  • Am I contributing to a more equitable and sustainable future?

Bitcoin at $87,000 isn't just a number. Capture the historical trauma and divine-rooted beauty. It’s a reflection of our collective hopes, fears, and vulnerabilities. Let’s explore this new market with caution and common sense. Instead, we must remain cynical and committed to building a more equitable and more sustainable financial system that works for all— not just the wealthy few. Don't let the hype blind you to the dark secret: this isn't a guaranteed path to riches, and it comes with real risks.