This Week in History

March 17, 1776, General George Washington deploys heavy guns from the capture of Fort Ticonderoga on Dorchester Heights above Boston.

The move forced the British to abandon the city and retreat to Halifax, Nova Scotia, to plan their next moves. This withdrawal allowed the American forces, under the command of George Washington, to gain a strategic advantage in the Boston area. The British eventually shifted their military focus to other regions, including New York City and Philadelphia, to regain control and suppress the rebellion. The abandonment of Dorchester Heights marked a turning point in the war, giving the American patriots a much-needed morale boost. General Gage, commander of the British forces, noted: “In all their wars against the French (the Colonists) never showed such conduct, attention, and perseverance as they do now." Gage’s recall is selective. In 1755, he was ambushed by the French near Fort Monongahela after failing to secure the elevated bluffs along his march. He failed to remember that lesson about the importance of the high ground or the Colonist whose troops helped cover his retreat that day, named George Washington, a young Major of the Militia noted for his bravery. 

     Selective memory is not merely the stuff of history or historically out-of-favor characters. It is a very modern and universal trait. To put it into a very modern sports analogy, it is like watching a highlight reel of your favorite team's victories while conveniently forgetting about their losses. In the case of the revolutionary currency known as Bitcoin, the recent surge in its value might make investors selectively forget about its volatile history. They might focus solely on the skyrocketing prices, conveniently ignoring the dramatic crashes and fluctuations that have characterized Bitcoin's journey. Since 2010, Bitcoin (BTC) has undergone 15 significant drawdowns, each surpassing a 30% decrease from its previous peak. Among these, the most severe included two overwhelming drops of 94% and declines of 85%, 84%, and 78%. Some of these drawdowns unfolded over many years. Similarly, after hitting bottom, it sometimes took years for Bitcoin to regain the high ground. A selective memory might provide temporary comfort, but a well-informed approach is key to navigating investments and revolutions.