I was recently a guest on Mr. The M podcast, where the host, Maurizio (Mr. M), and I discussed many of the realities of investing in bitcoin that are often not discussed with sufficient nuance.
For context, Maurizio invited me on the show because he wanted to discuss a Take I wrote last week titled “Don’t Buy The Bitcoin Dip,” where I shared that we’ve already been in a bitcoin bull market for over two years and now is probably not the best time to make significant bitcoin purchases. (Please note that in the article I did not encourage anyone to sell their bitcoin, nor did I suggest that they stop dollar cost averaging the asset.)
We discussed the piece and also touched on some other dynamics involved in investing in bitcoin that are not often brought up. So I thought I’d share some bullet points from the conversation here as a teaser for the episode.
When you invest in bitcoin, you can:
- Sell ​​some if you need some money and it is better to do this while the price of bitcoin is high
- Don’t go all in on bitcoin; having a cash buffer can be psychologically beneficial since bitcoin is a volatile asset
- Consider timing when making major bitcoin purchases; Bitcoin’s price goes through boom and bust cycles and it is best to buy during bear markets
I share these points because louder voices in the Bitcoin space often issue messages like “Buy dip” or “Never sell!” (my favorite example of this is the episode of What Bitcoin Did titled “Buy the Fucking Dip” that was released at the top of the 2021 bull market), encouraging those new to the space or who could benefit of selling or spending some bitcoin during a bull market not to.
Had I not sold any bitcoin in the latter part of the previous bull run, I would not have had the cash buffer that made it easier for me to quit my previous job, which made me miserable, so I got some financial breathing room. room while looking for work in the Bitcoin space. And here I am now, writing articles for Bitcoin Magazine for a living 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 you spend your bitcoin. Don’t just listen to the devout HODLers who can make you feel less of a Bitcoiner for doing what’s best for you.
This article is one Take. Opinions expressed are solely those of the author and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.