Treat Bitcoin As A Tool, Not A Cult
I was recently a guest on the Mr. M podcast, where the host, Maurizio (Mr. M), and I discussed many of the realities of investing in bitcoin that often arent discussed with enough nuance.
For context, Maurizio invited me onto the show because he wanted to discuss a Take I wrote last week entitled Dont Buy The Bitcoin Dip, in which I shared that weve already been in a bitcoin bull market for over two years and that now likely isnt the best time to make sizable bitcoin purchases. (Please note that, in the article, I didnt encourage anyone to sell their bitcoin, nor did I suggest that they stop dollar-cost averaging into the asset.)
We discussed the piece and also touched on some other dynamics involved with investing in bitcoin that dont often get brought up. So, I figured Id share some bullet points from the conversation here as a teaser for the episode.
When investing in bitcoin, you can:
- Sell some if you need some cash, and its better to do this while bitcoins price is high
- Not go all in on bitcoin; having a cash buffer can be psychologically beneficial, as bitcoin is a volatile asset
- Consider timing when making larger bitcoin purchases; bitcoins price goes through boom and bust cycles, and its best to buy during bear markets
I share these points because, oftentimes, louder voices in the Bitcoin space broadcast messages like Buy the dip or Never selling! (my favorite example of this is the episode of What Bitcoin Did entitled Buy the Fucking Dip that was published at the near the tippy top of the 2021 bull market), prompting those new to the space or who might benefit from selling or spending some bitcoin during a bull market not to.
Had I not sold some bitcoin during the latter part of the previous bull run, I wouldnt have had the cash buffer that made it easier for me to quit my previous job, which was making me miserable, so that I had some financial breathing room while looking for work in the Bitcoin space. And here I am now, writing articles for Bitcoin Magazine for a living in part because I sold some of my bitcoin.
So, please understand that Bitcoin is a tool that can be used in many different ways. Examine your life circumstances, and think for yourself when it comes to how to use your bitcoin. Dont just listen to the devout HODLers who may make you feel like less of a Bitcoiner for doing whats best for you.
This article is a Take. Opinions expressed are entirely the author's and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Read more: https://bitcoinmagazine.com/takes/treat-bitcoin-as-a-tool-not-a-cult
Text source: Bitcoin Magazine: Bitcoin News, Articles, Charts,
