I want to ask how your attitude has changed as you watched your net worth crumble.
In January of 2021, you wrote this article: I Am Addicted to the Bitcoin Price and It’s Hurting My Brain
In response, I wrote the following:
No. Right now, you are patting yourself on the back and thinking you're an investment genius. After Bitcoin prices collapse 80%+ AGAIN, then you will be spending a lot of time thinking you are an idiot.
Think about it. You went through this before. Remember last time you felt all these euphoric emotions, then Bitcoin prices fell over 80%, and you were dejected. You were beyond dejected. You had just lost an enormous amount of money, so you just put it out of your mind. I'll bet you went months without checking bitcoin's price. You certainly weren't compulsively checking the price and adding up how wealthy you were.
That wasn't an investment plan, that was imitating an ostrich. You stuck your head in the sand and pretended the entire episode never happened. You held an investment, probably representing a huge percentage of you net worth, as it declined in value by more than 80%. Genius investors don't do that.
Just so that you can't put your head in the sand and imagine you were not told, here is how the latest Bitcoin craze is going to play out:
Prices will rise again, and euphoria will completely take over. Every potential buyer will buy until prices are so high that nobody can explain it. Then, with the buyers exhausted, someone will sell, and the price will go down. Nobody will panic at first, (just as few sold in the recent 25% decline), but then prices will reverse, and all the anxious owners will see that the buying demand dried up, so they will start to take chips off the table. That starts prices falling which spooks the herd, and then the selling really gets going, prices drop precipitously, and everyone who was euphoric is crushed.
Remember that from last time? That's how it went down. It's the same in every price crash. Nobody can time these things precisely, but it's only a matter of when, not if, prices will crash again.
Bitcoin is an investment like putting your chips on a craps table. Perhaps the shooter will go on a long run and everyone will get a huge pile of chips, but eventually, the shooter craps out, and the massive pile of chips disappears.
Bitcoin has no value. Its only value is as medium of exchange for criminals and as a speculative investment for greater fools. Nobody needs Bitcoin. Bitcoin produces nothing. Bitcoin doesn't provide a stream of income. Bitcoins only value is what the greater fool says it is -- at least until the number of greater fools runs out.
Sell now if you don't want to feel like an idiot later after the crash.
