Bitcoin's Painful Downturn Exposes Reality, Says Strike Founder

Jack Mallers, founder of Strike and former CEO of Twenty One Capital, has written an essay on his experiences during Bitcoin's latest bear market. The market downturn has left him feeling 'getting my ass kicked,' but he believes that is exactly what makes the asset different from traditional financial systems.

Mallers argues that Bitcoin's painful downturns expose reality instead of hiding it. He notes that governments, banks, and institutions frequently soften the consequences of poor decisions through interventions such as bailouts and refinancing. In contrast, Bitcoin refuses to do that, making volatility a form of information rather than weakness.

Mallers draws a contrast between the world he is used to and Bitcoin's approach to transparency. He believes that price swings expose excessive leverage, poor decisions, and fragile business models instead of concealing them. Looking back at the collapse of FTX in 2022, Mallers contends that BTC did not create the fraud, but rather removed conditions that had allowed weak businesses and unsustainable leverage to survive.