I used to be just lately a visitor on the Mr. M podcast, the place the host, Maurizio (Mr. M), and I mentioned lots 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,” during which I shared that we’ve already been in a bitcoin bull marketplace for over two years and that now probably isn’t one of the best time to make sizable bitcoin purchases. (Please word that, within the article, I didn’t encourage anybody to promote their bitcoin, nor did I recommend 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 possibly can:
- Promote some if you happen to want some money, and it’s higher to do that whereas bitcoin’s value is excessive
- Not go all in on bitcoin; having a money buffer may be psychologically helpful, as bitcoin is a risky asset
- Think about timing when making bigger bitcoin purchases; bitcoin’s value goes by increase 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 “Purchase the dip” or “By no means promoting!” (my favourite instance of that is the episode of What Bitcoin Did entitled “Buy the Fucking Dip” that was printed on the close to the tippy prime of the 2021 bull market), prompting these new to the area or who would possibly profit from promoting or spending some bitcoin throughout a bull market to not.
Had I not offered 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 give up my earlier job, which was making me depressing, in order that I had some monetary respiratory room whereas searching for work within the Bitcoin area. And right here I’m now, writing articles for Bitcoin Journal for a residing partly as a result of I offered a few of my bitcoin.
So, please perceive that Bitcoin is a device that can be utilized in many alternative methods. Study your life circumstances, and suppose for your self in the case of how one can use your bitcoin. Don’t simply take heed to the religious HODLers who could make you’re 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.
