Enjoy the Bitcoin Ride

I woke up yesterday to find my personal net worth was down 15% overnight in USD terms thanks to a steep decline in the price of Bitcoin, Ethereum, and the rest of the cryptocurrencies I regard as high value investments and I really could not have cared less.

Maybe it is because I started my investment career in real estate, using 30 year mortgages as my timeline for profitability. Maybe it’s because I spent my early years reading all about Warren Buffet and learning his method of making long-term, well-researched investments, the buy and hold strategy. Or maybe it’s just my yoga and meditation practice I took up that makes me so zen-like while investing. Nevertheless, in my 7th year of investing in cryptocurrencies, I feel zero emotion when my crypto coins of choice make parabolic moves up or down.*

The point is, when you invest with educated conviction and lengthen your investing time horizon to years and decades rather than hours and days, you can start to relax into your position and take enjoyment watching the world around you unfold as it starts to prove or disprove the fundamental value proposition of your investment over time.

My first year buying Bitcoin, I lost 60%+ in comparative USD value. Fast forward 7 years, I’m up over 5,000% on those purchases. Good thing I didn’t panic sell!

Similarly, 10 months ago, I watched my investments drop 60% again when the novel coronavirus scared ALL financial markets to move to cash. This time, not only was I unphased, I simply bought more.

Now, one of my best friends likes to remind me, “Nothing can go up forever!” and he’s right. But I refute this statement exemplifying that when ancient humans decided gold was the best form of money for the times, it went from no monetary value to representing all of the wealth in the world. If you have done your research, you’ll know that we live in a digital age and Bitcoin is becoming adopted as the digital version of gold. And you’ll know its market is approximately 12 times smaller than gold’s and it has a very long way to go before reaching its true potential top: the total representable wealth in the world today.

So relax, buy the dips, and enjoy the rollercoaster ride that is returning investors over 100% compounded annually and has been profitable for 99.8% of all days in its existence so far as it continues its path towards mainstream adoption.

*Full Disclosure: I may celebrate just a little each time we reach new all time highs ;)