Never sell your Bitcoin??
- Who am I to disagree with a rich guy? A billionaire at that...
- Well just a regular guy who needs money for stuff like food, shelter, gas and stuff like that.
- Now while I would love to just put my money in the bank and watch it grow, never spend it, and you know...become rich.
- But that ignores two important things...Bitcoin is cyclical and people gotta eat
People Gotta Eat
- Lets get this one outta the way first.
- You and I, unlike trees and other plants, we can't absorb what we need from sunshine, rain and dirt.
- You know that old saying, plants eat dirt, animals eat plants, humans eat animals??
- Yeah that's how it works, and my wife and kids don't do that plant thing either! LOL !
- So when I make money, I need to spend a little of it on the essentials, food, water, shelter, clothing, you know, that stuff.
Bitcoin is cyclical
- One thing which makes fools of more people then I can count on my fingers and toes is Bitcoins cyclical nature.
- Bitcoin goes up and down in price, and while over the longterm it gains money, most peoplewho buuy and hold at the cyclical high, lose a tremendous amount of value during the coming low point of the market.
- But you don't have to take my word for it, just look at Bitcoins history, it goes up for a short period of time, relative to the period of time it goes down. Then it goes down, down, down, shedding anywhere from 70-90 percent of the value from the high.
- So if you bought Bitcoin at 10 cents and forgot about it, then woke up ten years later and it was over 20k...your great.
- But if you bought at 60k during the last bull run, and held... HELD... you took a 70% beating. And you probably beat yourself up every day until the next bullrun for holding...
- Listen, there's nothing wrong with buying Bitcoin to hold for the longterm, but it's probably better for your mental health to sell a little at the high and pay for those essentials or buy some Hive!
- But if my company had several billion in Bitcoin, and I held to the high and then watched my asset sheet 70% of it's value during the next bear market... 700 million dollars...you might call me irresponsible and neglecting my responsibilities to my share holders.
- But hey who am I to tell a billionaire about Bitcoin's very clear, very recurrent and very predictable cyclical behavior?
This time it will be different
- To be honest, every bull market is accompanied by two things:
Euphoria like we discovered the Messaiah, and...
The statement that this time will be different
- Yeah... I am sorry to tell you that statistically speaking, this time will not be different, it will be the same as last time, and the time before that, and the time before that....
- Get the picture?
- As they say in physics class, What goes up, will come down.
- Except the rare object like a spacecraft, which reaches escape velocity and leaves the earth.
- Bitcoin is not a space-craft, it will do what it has done before go up and go down.
The END
Footnotes
MicroStrategy owns 244,800 bitcoins as of Sept. 17, 2024. MicroStrategy states the average purchase price as $38,585.00 USD per bitcoin with a total cost of $9.45 billion USD.
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