I used to be lately a visitor on the Mr. M podcast, the place the host, Maurizio (Mr. M), and I mentioned most of the realities of investing in bitcoin that usually aren’t mentioned with sufficient nuance.
For context, Maurizio invited me onto the present as a result of he needed to debate a Take I wrote final week entitled “Don’t Buy The Bitcoin Dip,” by which I shared that we’ve already been in a bitcoin bull marketplace for over two years and that now seemingly isn’t the very best time to make sizable bitcoin purchases. (Please be aware that, within the article, I didn’t encourage anybody to promote their bitcoin, nor did I counsel that they cease dollar-cost averaging into the asset.)
We mentioned the piece and in addition touched on another dynamics concerned with investing in bitcoin that don’t usually get introduced up. So, I figured I’d share some bullet factors from the dialog right here as a teaser for the episode.
When investing in bitcoin, you’ll be able to:
- Promote some in the event you want some money, and it’s higher to do that whereas bitcoin’s worth is excessive
- Not go all in on bitcoin; having a money buffer could be psychologically helpful, as bitcoin is a risky asset
- Think about timing when making bigger bitcoin purchases; bitcoin’s worth goes by way of growth and bust cycles, and it’s finest to purchase throughout bear markets
I share these factors as a result of, oftentimes, louder voices within the Bitcoin area broadcast messages like “Buy the dip” or “Never selling!” (my favourite instance of that is the episode of What Bitcoin Did entitled “Buy the Fucking Dip” that was revealed on the close to the tippy prime of the 2021 bull market), prompting these new to the area or who may profit from promoting or spending some bitcoin throughout a bull market to not.
Had I not bought some bitcoin throughout the latter a part of the earlier bull run, I wouldn’t have had the money buffer that made it simpler for me to stop my earlier job, which was making me depressing, in order that I had some monetary respiration room whereas searching for work within the Bitcoin area. And right here I’m now, writing articles for Bitcoin Journal for a dwelling partially as a result of I bought a few of my bitcoin.
So, please perceive that Bitcoin is a device that can be utilized in many various methods. Look at your life circumstances, and assume for your self in relation to tips on how to use your bitcoin. Don’t simply hearken to the religious HODLers who might make you are feeling like much less of a Bitcoiner for doing what’s finest for you.
This text is a Take. Opinions expressed are completely the writer’s and don’t essentially mirror these of BTC Inc or Bitcoin Journal.
