Transcription
This is Matthew from CRS Bitcoin University. Today, I want to talk about "holding on for dear life." This is, of course, an allusion to "huddle," which originated from a Bitcoin forum in 2013. I believe a fairly intoxicated person was trying to type "hold" but instead typed "huddle." Subsequently, this has been interpreted as standing for "hold on for dear life," which is definitely a good saying when it comes to Bitcoin.
There's this old joke that's been applied to many markets, but you could apply it to Bitcoin: How to end up with a million dollars worth of Bitcoin? You buy $2 million worth of Bitcoin and just wait a few weeks. Obviously, a lot of people are feeling like that now. Bitcoin class of 2025 is going through something quite out of Dune and experiencing quite a bit of pain. The same clowns panic-selling now because they can't handle a little pain will be the ones calling you lucky when Bitcoin hits a million dollars.
I like this phrase from Carl Menger: "It's important to just huddle at times like this. Everything's going to be all right." Just don't buy Bitcoin using leverage, especially during good times. Don't buy it using leverage with futures or perpetuals or any sort of borrowed money, because that's how you get blown out of the water. Also, don't buy Bitcoin with money that you can't leave locked up for at least five years. And obviously, don't buy altcoins, shitcoins, meme coins—these are a way to incinerate your wealth extremely quickly. If the price of Bitcoin makes you sick, it's easy: just don't look at the price if you can help it.
I want to share some comments from yesterday's video, which was about whether Bitcoin is unfair to late adopters. Columbus400 wrote, "Thanks for this video. This has been on my mind lately because I got in late. I worked my butt off to get to over a certain amount of Bitcoin at the 96-98k price range, and now I feel like an idiot thinking it would never go back down. Was debating if I should sell it, wait for it to hit 70k, and buy back in." My response: I think it's a bad idea to try to time the market like that. If you sell now and wait for 70k, what will you do if it never comes, and Bitcoin gaps back up? Also, never tell people how much Bitcoin you have, even if your anonymous YouTube handle looks like he edited his comment, fortunately not saying how much Bitcoin he had.
Scott responded, "Been watching BTC for three years or so. Trust me, the times I sold always ended in regret, nearly 100% of the time. Just buy it and forget it. There's no better strategy. Just like simple nature, Bitcoin itself, the best investment strategy is also the most simple." Then IBuyBitcoinAtTheBottom said, "Sounds like you're still stuck in the fiat mindset. Just keep stacking. These dips are a gift." So you don't think about the fiat value of the Bitcoin you're holding, but you just try to do whatever is in your power to safely increase the amount of Bitcoin you're holding, and you begin to value your wealth in Bitcoin rather than value your wealth in fiat instead.
StripMallGuy was getting a lot of traction on Twitter yesterday. I'm not sure if he's just engagement baiting, but serious question: because this is a common answer, folks who own Bitcoin are happy when it drops so that they can buy more. Is this really a thing? If so, there's never been an asset class I'm aware of where folks who own the asset root for it to drop. I'm confused, respectfully. My response was, "I guess you've never even read Buffett." Obviously, obviously when StripMallGuy goes to buy a new strip mall, he would rather pay less than pay more because it's an asset that he understands. By referring to Buffett, I was referring to these two favorite sayings. There's a lot wrong with Buffett and his approach to the world, but he is still a wonderful teacher, and he's very good at these sorts of proverbs. This is Buffett speaking: "Whether we're talking about stocks or socks, I like buying quality merchandise when it's marked down." This certainly applies to Bitcoin today. And then the other famous saying: "Be fearful when others are greedy, and greedy only when others are fearful." I think there's quite a bit of fear in the Bitcoin market right now that suggests that we're close to a bottom as well.
This video, "Bitcoin Bull Market Over," has some interesting recollections back from the previous bear market. StevenGardner9564 said, "Back in the previous bear market (2021-2022), I felt like a fat kid at a buffet when it dropped to 15k. I sold most of my tech stock options to buy Bitcoin and make each person in my family a whole coiner. I knew it was probably the only opportunity I'd get to do that." My response: "I took a lot of courage. Congrats. Buying when things are bleak like that can be very, very difficult."
Finally, I wanted to finish with a long comment from Parker Lewis, which I think is a very interesting analysis of human psychology when it comes to buying Bitcoin. Parker writes, "When you buy Bitcoin, there's an inherent bias in the moment to want it to go up. That's human psychology. You want to price Bitcoin right when you buy it, especially when you first buy Bitcoin. You want to be in the green immediately. It reinforces that you made a good decision. But then later you realize that 99% of your money is still in fiat. When Bitcoin went up, your purchasing power in Bitcoin terms went down for the other 99%. When pricing Bitcoin in the moment that you buy, you want that individual pricing decision to be a good decision. However, over time you become less sensitive and realize the moment in time doesn't matter, and that you really want to maximize and optimize 100% of your savings while managing volatility. You don't mind Bitcoin going down whether 10% of your savings are in Bitcoin or nearly all of it because it's an opportunity to save more in the present, knowing everything you do hold will increase in purchasing power over time. You never per se like your purchasing power going down ever, but it's also an opportunity, and you become desensitized to the volatility the longer you save in Bitcoin." I think there's a lot of wisdom there. If you enjoyed this video, be sure to hit the subscribe and like buttons. Hit the notification bell if you want to be notified when I publish my next video, and let me know your questions and comments in the comment section below. Thanks all for watching, and I'll see you in the next video.