As you can imagine, I am pretty vocal about cryptocurrency and, in particular Bitcoin, I’ve made it known to the world and in my friendship circles, and yes, I am referred to as “the bitcoin guy” or “he does Bitcoin” by the normies. When people speak to me and ask questions, I can quickly tell off the bat who has the chops for this and who doesn’t.
The ones that ask the right questions on how it works, how it compares to fiat and where it all comes from tend to fare better than those who ask me how you get rich from crypto. A large percentage of crypto is held by people who want to buy low and sell high; I have no problem with that, do with your money and time as you please.
However, that’s not my game! I can’t give you advice on it; I can only tell you what I see, what my plans are and how I handle and store my cryptocurrency.
The marshmallow test
Since I am a “free to choose” kind of guy, a student of Milton Friedman if you will, I don’t like to tell people what to do with their money, especially if what they do benefits me to the upside. I see so many people buying crypto or earning crypto only to sell it at any price and have to handle the tax on it; to me, this makes no sense.
Why would you want to prematurely sat-late?
I can understand using your crypto to earn a passive income, to store value, to participate in communities but to sell for something as abundant as cash? That, to me, makes no sense; there are so many other ways to earn cash, so why would I want to sell the opportunity cost of crypto cheap.
When you cash out to keep that cash, all you do is catch a falling knife. You are the next Bitcoin pizza guy; you are the kind that you couldn’t wait for the second marshmallow.
Again I am not saying what you should do with your money; your selling makes me richer. What I am saying is to take note of what you are selling and what you are buying right now/getting in exchange for your crypto and be cognizant of the opportunity losses.
Do you really want to sell your Bitcoin at $13 000? Do you really want to sell your HIVE at $0.13? What could be as valuable as a ticket to the potential upside of the future?
9 Million percent
Bitcoin is the decade’s best-performing asset, and for a good reason, no one has even come close to its 9 million % return, and there are going to be altcoins that replicate something similar if it’s 100 000% or 1 million percent, who really cares.
Each year Bitcoins percentage gains continue to slow down, but slowing down from 9 million % takes a while before it’s going to settle down.
- Perhaps you’re selling your crypto to buy a laptop when you could wait and buy 10?
- Perhaps you want to secure a years salary, but why when you can secure 10 years?
Cash is trash
And what do we do with trash? We throw it away; I happily hand over my trash cash to exchanges; you can have it, give me the Bitcoin. The Bitcoin game doesn’t have to be about skill or luck, just patience and consistency when you run the math, it’s staggering the amount of upside you can achieve, and I, for one, am maximising every bit I can.