“Bought Bitcoin at 102,000 dollars when it’s 92,000 dollars now — rather stupid move by Saylor.”
In response, I pointed out that people said this when Saylor bought at 10k, 15k, 20k, 40k, 60k, and 80k. Every single time, people called him an idiot.
We call retail investors “dumb money.”
This is because they usually rush into Bitcoin to buy the top, and then they panic sell the bottom when the price drops. It happens every time. When an asset reaches a euphoric high, the public are queued around the block ready to buy it. Then when the inevitable correction hits and the price drops, they panic and sell the bottom. They wanted a quick buck — instead, they get a quick loss.
Traders think they can time the market by buying the bottom and selling the top.
It hardly ever works. Best case scenario, they break even.
Notice how traders sell trading courses?
Why?
Because they have to make money somehow, that’s why.
99 percent of people who trade lose money, and the one percent who make money would have made the same amount if they had simply held the asset instead of being glued to a screen 24/7 like Gollum staring at the ring. “My precioussss… stop loss.”
This reminds me of Angry Mike. One of my ex-wives had a friend who married a guy called Mike. He was in the U.S. Air Force and did a trading course when he left. $100,000 of their savings burned and 36 smashed keyboards later, Mike realised that the only people making money in trading are the ones who sell the courses — and value investors who can spot a product that will always be in demand and just buy and hold it.
Like real estate — but better.
Bitcoin is one of those things.
What purpose does it serve?
Imagine you lived in Ukraine and all your money was tied up in your house. As in, you put down a large deposit — basically all your savings — and now your house is a pile of rubble. That’s not ideal, is it?
What if you stored your wealth in gold bars in your basement? Well, that’s getting confiscated, isn’t it? If it isn’t stolen by Russian or Ukrainian soldiers — or simply someone bigger than you — it’s getting taken at the Polish border.
But you could memorise your Bitcoin seed phrase and walk across the border with a million dollars’ worth of Bitcoin stored in your head.
You’re probably thinking: “But I’m not in a Ukrainian war zone.”
True.
But what if you decide you want to move abroad at a moment’s notice?
A house is a ball and chain that goes up about 3 percent a year nominally (losing value in real terms).
Gold is a ball and chain that goes up around 4 percent nominally (also losing value in real terms).
Bitcoin is a bank in your head that goes up an average of 50 percent a year.
Smart people know this.
People like Peter McCormack. On a recent podcast (https://youtu.be/Mpi4HY564gs), Ant Middleton asked Peter if he trusted the government with his finances. Peter said he doesn’t — he keeps all his money in Bitcoin. With an annual income well over seven figures, that’s quite a bit of Bitcoin. In fact, holding his wealth in Bitcoin is what enabled him to buy a football club.
Peter is also sick to the back teeth of the crime in his local town of Bedford, so he’s set up his own private police force and pays for private security to police Bedford town centre. This earned him the headline “The Bitcoin Batman” in the Daily Mail:
https://www.dailymail.co.uk/news/article-14963919/Bitcoin-Batman-save-Bedford-Former-cocaine-addict-turned-crypto-millionare.html
Although I disagree with the headline “Crypto millionaire.”
Pete wouldn’t invest in shitcoins.
Bitcoin, not crypto.
There is no second best.
⸻
Nomad investor 
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