Bitcoin as a Risk Free Asset, The article that talks to me, How about you?
Scott Debevic
The Secrets to Accumulating Bitcoin
I've used this strategy for over two years and have no urge to panic sell. Instead, I'm buying Bitcoin on sale as the price goes lower.
Photo by Michał Parzuchowski on Unsplash
It's been a board game binge in the Debevic house over the past couple of weeks. It started with Monopoly. I have been relentlessly destroying my children at Monopoly ever since we bought it. I gave each of them a mercy win to keep them involved and interested, but I'm hoping they will learn about strategy.
And since you are kindly reading my article, I'll share the secret to winning Monopoly. The most powerful monopoly you can own is the orange properties. Statistically, they get landed on the most frequently and have a tremendous value for the cost of building houses/hotels and rents collected. Another good strategy is owning all four railroads. You can typically trade for them cheaply; they are cash cows if you own all four.
Luckily, my kids don't read my writing. So, I will continue giving them "life lessons" until they learn not to trade with dad or improve their strategy. My ego needs the boost of beating elementary schoolers and ensuring my kids know dad is the most intelligent person in the house.
But beating newly taught children in Monopoly is pretty straightforward. Meanwhile, on the other hand, accumulating Bitcoin is exceptionally challenging. With the ups, the downs, and relentless news, it's easy to make mistakes and wind up on the losing end. So, I will share secrets that will 100% work for you as long as Bitcoin reaches new highs!
Learning from my mistakes
I have made two significant mistakes investing in crypto. My first mistake was buying an altcoin, XRP, rather than purchasing Bitcoin when I first entered the crypto space in 2017. I was looking for quick money, and I made a small fortune on XRP and lost it all within one year. I was forced to sell my XRP at lows because, at that time, it was only available on foreign exchanges. And the foreign exchanges booted American investors, so I had to sell.
After the first lesson, I decided to buy only Bitcoin and Ethereum. I waited until about six months before the 2020 halving and bought in big. Then the pandemic came and sunk the markets. I sold all my Bitcoin and Ethereum near the lows when Bitcoin traded at around $5600, and ETH was $130. I waited for Bitcoin to hit the $3000 mark to buy again. Unfortunately, it never did.
After my first mistake, I learned I needed a strategy to succeed in crypto. Unfortunately, I applied a strategy but over-invested and panic sold during the pandemic shakeout. Worse, I consumed so much media that I believed the BS being written about Bitcoin going to the $3000 level. After these two painful lessons, I developed some new secrets I will share with you.
Bitcoin Secret #1
Understanding Bitcoin is the key. Before investing in Bitcoin and crypto, it's essential to comprehend the narrative and honestly believe in it. If you don't believe in the story, that's ok. However, it doesn't make sense to diversify into Bitcoin.
I don't want to waste a lot of time going over the narrative for Bitcoin, so I will touch on some of the significant factors why it makes sense. If you disagree, I encourage you to share your thoughts in the responses.
Narrative #1- Fiat always fails
Historically, fiat currencies have consistently failed. Scarce precious metals primarily backed fiat currencies. In 1971, the US forced the world into leaving the gold standard. This has been tremendously beneficial for the US but not so much for other countries.
As we are seeing from our tremendous debts, boom/bust economic cycles, and high inflation rates, people want an alternative. So why save fiat if the buying power will continue shrinking?
Narrative #2- Bitcoin offers a fiat alternative
As more people recognize their dollars, euros, yen, yuans, and pesos are buying them less, they will be forced to find an alternative or face financial ruin. Enter Bitcoin. Bitcoin has a limited supply, a set inflation schedule, no centralized governing authority, and covers a global market.
You don't need to be a qualified investor to own Bitcoin. You don't have to trust your funds in a shady institution that enriches shareholders and executives. And your money can't be frozen by a third party.
Narrative #3- Bitcoin adoption is increasing
Adoption is increasing rapidly. Meanwhile, the supply is extremely scarce. There are a maximum of 21 million Bitcoins and 8 billion people on earth. This means that if all Bitcoin were divided equally to every human, it would only equate to 0.00263 Bitcoin per person.
According to Globalbankingrates.com, there is around $40 trillion circulating in fiat. This equates to $5,000 per person. As more people convert their fiat to Bitcoin, the value of Bitcoin will rise and can rise exponentially.
Conclusions from these narratives
If you agree that fiat is flawed, that Bitcoin is a viable alternative, and that Bitcoin adoption is increasing, then it's just a matter of buying and holding as much of the 21 million supply as you can and want to get.
The challenge is that Bitcoin's price is so volatile. My second major crypto mistake was overinvesting and getting shaken out of my position when Bitcoin and the world seemed on fire. I'm sure some readers who bought Bitcoin for $69K, $50K, and $40K are feeling the same way right now. This is why believing in the narrative is crucial if you are serious about accumulating Bitcoin.
Bitcoin Secret #2
Most people in the US have more money in their retirement accounts than in their non-retirement accounts. A big reason for this is that you can only touch the retirement funds once you are 59.5 years old. The penalties for withdrawing early are so draconian that most people will let the funds accumulate.
On the other hand, Bitcoin can be traded 24 hours a day from anywhere in the world. So reading a negative article, listening to an “expert” interview, and hitting the sell button is extremely easy. Here are some sample headlines I am pulling from recent financial news sources trying to talk you into selling your Bitcoin.
'This is crypto extinction': Peter Schiff predicted the 2008 financial crash — now he sees the total destruction of digital currencies very soon. He likes these 3 assets instead
'Why do we allow this stuff?' Jamie Dimon says investing in crypto tokens is like buying 'pet rocks'
Bitcoin Miner Marathon Expects to Recover Less Than Half Its Deposit From Bankrupt Compute North
Jim Cramer urges investors to exit crypto — 'it's never too late to sell'
Tomorrow, there will be more stories like this. The second secret for accumulating Bitcoin is to think of your Bitcoin wallet as a vault. But it's a vault where only Bitcoin can go in. Think of it like your 401K. If you sell Bitcoin in the vault, you forego substantial potential returns. If you bought at higher prices, you are paying the penalty by selling it early and accepting the loss.
When you think of your Bitcoin being in a vault, it is harder to sell based on emotion, fear, greed, or wanting to spend money.
Secret #3
We've already discussed that you must first believe in Bitcoin if you are serious about accumulating it. You can still consider that Bitcoin can fail. Instead, you accept that Bitcoin has a solid narrative to hold in the face of fiat history, questionable fiscal policies, and increased demand paired with its limited supply.
Secondly, you have to be able to see the big picture. Every day, someone or someplace will scare you into selling your Bitcoin. The criticisms grow louder the further Bitcoin's price falls. Finally, the perceived and potential losses will cause many investors to capitulate and sell. But, if you think of your Bitcoin entering a vault for your future self and your family and consider it a second retirement account, you can ignore the noise.
This brings us to our last secret. Continue accumulating. As much as everyone wants to claim, they know the exact bottom and very top for Bitcoin; understand they are full of shit. All of the news and media have an agenda. This article has an agenda: why and how you can accumulate more Bitcoin.
If you formulate an annual budget you are comfortable investing in Bitcoin, divide that number by 52 or 365. Make sure it's a number that you can live without. For some people, it may be $500 per year. Others may feel comfortable with more significant amounts. Try to create a budget that you can sustain for years.
Finally, execute. Take the budget divided by 52 or 365 and invest it in Bitcoin weekly or daily. Take the gyrations out of the market and allow yourself to ignore what today's talking head is saying or convincing you about.
Yes, you will buy at the peaks. But, you will also buy at the troughs. And it works because if you purchase a consistent amount, you are accumulating more Bitcoin at the lows. Your bag is more valuable when Bitcoin returns to all-time highs.
Key Takeaways
I have been using this system for over two years. I don't need to worry about timing the market and haven't felt the need to panic sell even though Bitcoin sells for 75% less than what I bought it for last year. This is because I believe the story, ignore the noise and have a strategy for accumulating Bitcoin.
These secrets aren't rocket science. And you may disagree with one or all of these components. However, if Bitcoin continues on its same trajectory, your future self will be thrilled with your current self for diversifying into this burgeoning asset class.
My daily Bitcoin purchases have become habitual, like flossing my teeth. When the price goes down, I am happy I am accumulating more Bitcoin. Alternatively, when the price goes up, I am also excited because my portfolio is worth more.
Do you have any secrets for accumulating Bitcoin you want to share? Do you think this story is all about promoting an agenda? Are you buying Bitcoin in this bear market? Share your thoughts, feelings, and ideas in the responses.
This article isn't financial advice, and I am not a financial advisor. It is strictly my opinion. Bitcoin and crypto fall into a high-risk asset class. I am someone who wants to maintain and grow my wealth so that I can provide a good livelihood for my family and myself. So do your research before making any investments.
Scott Debevic
The Secrets to Accumulating Bitcoin
I've used this strategy for over two years and have no urge to panic sell. Instead, I'm buying Bitcoin on sale as the price goes lower.
Photo by Michał Parzuchowski on Unsplash
It's been a board game binge in the Debevic house over the past couple of weeks. It started with Monopoly. I have been relentlessly destroying my children at Monopoly ever since we bought it. I gave each of them a mercy win to keep them involved and interested, but I'm hoping they will learn about strategy.
And since you are kindly reading my article, I'll share the secret to winning Monopoly. The most powerful monopoly you can own is the orange properties. Statistically, they get landed on the most frequently and have a tremendous value for the cost of building houses/hotels and rents collected. Another good strategy is owning all four railroads. You can typically trade for them cheaply; they are cash cows if you own all four.
Luckily, my kids don't read my writing. So, I will continue giving them "life lessons" until they learn not to trade with dad or improve their strategy. My ego needs the boost of beating elementary schoolers and ensuring my kids know dad is the most intelligent person in the house.
But beating newly taught children in Monopoly is pretty straightforward. Meanwhile, on the other hand, accumulating Bitcoin is exceptionally challenging. With the ups, the downs, and relentless news, it's easy to make mistakes and wind up on the losing end. So, I will share secrets that will 100% work for you as long as Bitcoin reaches new highs!
Learning from my mistakes
I have made two significant mistakes investing in crypto. My first mistake was buying an altcoin, XRP, rather than purchasing Bitcoin when I first entered the crypto space in 2017. I was looking for quick money, and I made a small fortune on XRP and lost it all within one year. I was forced to sell my XRP at lows because, at that time, it was only available on foreign exchanges. And the foreign exchanges booted American investors, so I had to sell.
After the first lesson, I decided to buy only Bitcoin and Ethereum. I waited until about six months before the 2020 halving and bought in big. Then the pandemic came and sunk the markets. I sold all my Bitcoin and Ethereum near the lows when Bitcoin traded at around $5600, and ETH was $130. I waited for Bitcoin to hit the $3000 mark to buy again. Unfortunately, it never did.
After my first mistake, I learned I needed a strategy to succeed in crypto. Unfortunately, I applied a strategy but over-invested and panic sold during the pandemic shakeout. Worse, I consumed so much media that I believed the BS being written about Bitcoin going to the $3000 level. After these two painful lessons, I developed some new secrets I will share with you.
Bitcoin Secret #1
Understanding Bitcoin is the key. Before investing in Bitcoin and crypto, it's essential to comprehend the narrative and honestly believe in it. If you don't believe in the story, that's ok. However, it doesn't make sense to diversify into Bitcoin.
I don't want to waste a lot of time going over the narrative for Bitcoin, so I will touch on some of the significant factors why it makes sense. If you disagree, I encourage you to share your thoughts in the responses.
Narrative #1- Fiat always fails
Historically, fiat currencies have consistently failed. Scarce precious metals primarily backed fiat currencies. In 1971, the US forced the world into leaving the gold standard. This has been tremendously beneficial for the US but not so much for other countries.
As we are seeing from our tremendous debts, boom/bust economic cycles, and high inflation rates, people want an alternative. So why save fiat if the buying power will continue shrinking?
Narrative #2- Bitcoin offers a fiat alternative
As more people recognize their dollars, euros, yen, yuans, and pesos are buying them less, they will be forced to find an alternative or face financial ruin. Enter Bitcoin. Bitcoin has a limited supply, a set inflation schedule, no centralized governing authority, and covers a global market.
You don't need to be a qualified investor to own Bitcoin. You don't have to trust your funds in a shady institution that enriches shareholders and executives. And your money can't be frozen by a third party.
Narrative #3- Bitcoin adoption is increasing
Adoption is increasing rapidly. Meanwhile, the supply is extremely scarce. There are a maximum of 21 million Bitcoins and 8 billion people on earth. This means that if all Bitcoin were divided equally to every human, it would only equate to 0.00263 Bitcoin per person.
According to Globalbankingrates.com, there is around $40 trillion circulating in fiat. This equates to $5,000 per person. As more people convert their fiat to Bitcoin, the value of Bitcoin will rise and can rise exponentially.
Conclusions from these narratives
If you agree that fiat is flawed, that Bitcoin is a viable alternative, and that Bitcoin adoption is increasing, then it's just a matter of buying and holding as much of the 21 million supply as you can and want to get.
The challenge is that Bitcoin's price is so volatile. My second major crypto mistake was overinvesting and getting shaken out of my position when Bitcoin and the world seemed on fire. I'm sure some readers who bought Bitcoin for $69K, $50K, and $40K are feeling the same way right now. This is why believing in the narrative is crucial if you are serious about accumulating Bitcoin.
Bitcoin Secret #2
Most people in the US have more money in their retirement accounts than in their non-retirement accounts. A big reason for this is that you can only touch the retirement funds once you are 59.5 years old. The penalties for withdrawing early are so draconian that most people will let the funds accumulate.
On the other hand, Bitcoin can be traded 24 hours a day from anywhere in the world. So reading a negative article, listening to an “expert” interview, and hitting the sell button is extremely easy. Here are some sample headlines I am pulling from recent financial news sources trying to talk you into selling your Bitcoin.
'This is crypto extinction': Peter Schiff predicted the 2008 financial crash — now he sees the total destruction of digital currencies very soon. He likes these 3 assets instead
'Why do we allow this stuff?' Jamie Dimon says investing in crypto tokens is like buying 'pet rocks'
Bitcoin Miner Marathon Expects to Recover Less Than Half Its Deposit From Bankrupt Compute North
Jim Cramer urges investors to exit crypto — 'it's never too late to sell'
Tomorrow, there will be more stories like this. The second secret for accumulating Bitcoin is to think of your Bitcoin wallet as a vault. But it's a vault where only Bitcoin can go in. Think of it like your 401K. If you sell Bitcoin in the vault, you forego substantial potential returns. If you bought at higher prices, you are paying the penalty by selling it early and accepting the loss.
When you think of your Bitcoin being in a vault, it is harder to sell based on emotion, fear, greed, or wanting to spend money.
Secret #3
We've already discussed that you must first believe in Bitcoin if you are serious about accumulating it. You can still consider that Bitcoin can fail. Instead, you accept that Bitcoin has a solid narrative to hold in the face of fiat history, questionable fiscal policies, and increased demand paired with its limited supply.
Secondly, you have to be able to see the big picture. Every day, someone or someplace will scare you into selling your Bitcoin. The criticisms grow louder the further Bitcoin's price falls. Finally, the perceived and potential losses will cause many investors to capitulate and sell. But, if you think of your Bitcoin entering a vault for your future self and your family and consider it a second retirement account, you can ignore the noise.
This brings us to our last secret. Continue accumulating. As much as everyone wants to claim, they know the exact bottom and very top for Bitcoin; understand they are full of shit. All of the news and media have an agenda. This article has an agenda: why and how you can accumulate more Bitcoin.
If you formulate an annual budget you are comfortable investing in Bitcoin, divide that number by 52 or 365. Make sure it's a number that you can live without. For some people, it may be $500 per year. Others may feel comfortable with more significant amounts. Try to create a budget that you can sustain for years.
Finally, execute. Take the budget divided by 52 or 365 and invest it in Bitcoin weekly or daily. Take the gyrations out of the market and allow yourself to ignore what today's talking head is saying or convincing you about.
Yes, you will buy at the peaks. But, you will also buy at the troughs. And it works because if you purchase a consistent amount, you are accumulating more Bitcoin at the lows. Your bag is more valuable when Bitcoin returns to all-time highs.
Key Takeaways
I have been using this system for over two years. I don't need to worry about timing the market and haven't felt the need to panic sell even though Bitcoin sells for 75% less than what I bought it for last year. This is because I believe the story, ignore the noise and have a strategy for accumulating Bitcoin.
These secrets aren't rocket science. And you may disagree with one or all of these components. However, if Bitcoin continues on its same trajectory, your future self will be thrilled with your current self for diversifying into this burgeoning asset class.
My daily Bitcoin purchases have become habitual, like flossing my teeth. When the price goes down, I am happy I am accumulating more Bitcoin. Alternatively, when the price goes up, I am also excited because my portfolio is worth more.
Do you have any secrets for accumulating Bitcoin you want to share? Do you think this story is all about promoting an agenda? Are you buying Bitcoin in this bear market? Share your thoughts, feelings, and ideas in the responses.
This article isn't financial advice, and I am not a financial advisor. It is strictly my opinion. Bitcoin and crypto fall into a high-risk asset class. I am someone who wants to maintain and grow my wealth so that I can provide a good livelihood for my family and myself. So do your research before making any investments.
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