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Last updated Nov 29, 2025
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Jason @ 01:17:14Wrong
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Following the 2021 Bitcoin price drawdown of roughly 50%, increasing "Bitcoin toxicity" and maximalist behavior will deter new participants, damage Bitcoin’s broader appeal, and materially undermine the long‑term success and growth of the Bitcoin project relative to the wider crypto ecosystem.
So Bitcoin toxicity is now a thing. And it's actually I believe making the movement um toxic to people. And people are not going to want to participate. So it's actually collapsing the project. People do not want to be involved in toxicity. And people think that there's many ways to win in crypto. There are. So the crypto community, because of the recent loss of 50%, I think now is in a death spiral of toxicity.View on YouTube
Explanation

Key observable outcomes since mid‑2021 contradict the prediction that Bitcoin toxicity would cause a death spiral, deter participation, and materially undermine Bitcoin’s long‑term success relative to the rest of crypto:

  1. Bitcoin dominance and relative performance rose, not fell.

    • CoinGecko data show Bitcoin’s average market‑cap dominance was ~47.6% in 2021, dipped in 2022, but then climbed to 51.9% in 2024 and about 59.3% in 2025, with daily dominance surpassing 60% for the first time in four years in April 2025.
    • By 2025 this resurgence is explicitly linked to mainstream legitimacy and institutional adoption, while Ether’s market share has shrunk from ~13% to ~7% over the same period, indicating Bitcoin has strengthened relative to most of the crypto ecosystem, not weakened. (coingecko.com)

  2. Participation and on‑chain adoption kept climbing.

    • Glassnode‑based analytics show addresses with a non‑zero BTC balance hit an all‑time high of ~38.8M in late 2021, then ~40M by early 2022, and continued rising to over 44M by early 2023 and about 52.5M+ by May 2024, with further growth beyond 53M later in 2024. This is sustained user growth, not a collapse in willingness to participate. (dailyhodl.com)

  3. Price and institutional adoption reached record levels.

    • After the 2021 drawdown, Bitcoin not only recovered but set successive all‑time highs: breaking $70,000 in March 2024 and then exceeding $110,000–$120,000+ multiple times in 2025, with peaks reported around $118k–$125k and a market cap near $2.2–2.5 trillion. (forbes.com)
    • U.S. spot Bitcoin ETFs, launched in January 2024, amassed over $100–125B+ in assets within about a year, holding more than 6% of Bitcoin’s supply and ranking among the fastest‑growing ETFs in history—strong evidence of new mainstream and institutional participation rather than people avoiding Bitcoin. (cointelegraph.com)

  4. Crypto as a whole grew, but Bitcoin remained the centerpiece.

    • By mid‑to‑late 2025, the total crypto market cap is in the ~$3.8–4T+ range, with Bitcoin alone around $2.2T or more—roughly 55–60% of total value. Even as altcoins and stablecoins boomed, analysis from financial and industry outlets repeatedly frames Bitcoin as the benchmark digital asset at the core of the ecosystem, not a project in “collapse.” (investopedia.com)

"Bitcoin toxicity" and maximalist culture are real discussion topics, but the prediction here was much stronger: that such toxicity would collapse the project and put Bitcoin into a "death spiral" by driving people away and causing it to underperform the broader crypto space. Four years of data show the opposite: Bitcoin’s user base, price, institutional integration, and market share have all grown markedly. On that basis, the prediction is wrong.