Buy, Hold, and Don’t Watch Too Closely – Warren Buffett’s 3 Tips for Bitcoin Bear Market.
The Oracle of Omaha may have been overtaken by new technologies, but it is still good advice in some cases.
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Every time I write an article where I talk about Warren Buffett, whether it's good or bad, I always get a lot of messages afterward telling me either that I don't understand anything because Bitcoin is “Rat poison squared” or that Warren Buffett is a senile old man who is totally out of date.
I must confess that I partly agree with one of these two accusations. Yes, Warren Buffett is totally out of date when it comes to new technologies. In fact, in the rules, he constantly advocates, he has always said to only invest in companies that you understand.
Since he doesn't understand anything about new technologies, it makes sense that Warren Buffett missed the GAFAM wave, just as it makes sense that he missed the Bitcoin revolution several years ago.
For all that, you still have to respect a man who has had such sustained success for decades as the head of Berkshire Hathaway. Warren Buffett started investing 80 years ago! His investment philosophy has allowed him to surpass $100 billion in estimated personal wealth. That's pretty good.
Not everything about Warren Buffett is bad. There are some tips to take from him that we can transpose to Bitcoin. Warren Buffett doesn't understand Bitcoin, but we do. We understand why Bitcoin exists and we have fundamental confidence in Bitcoin. Just as Buffett says he is willing to hold forever the shares of a company he invests in, we are willing to HODL Bitcoin forever.
Since our philosophies are so similar, there must be something in Warren Buffett's strategy for dealing with a Bear Market. For we are currently in a Bitcoin Bear Market or at least a painful market.
Warren Buffett's 3 tips in a Bear Market apply perfectly to Bitcoin
In such a market environment, Warren Buffett doesn't get overly stressed and sticks to three basic pieces of advice:
Don’t watch too closely.
It's simple but effective if you can show the same patience with Bitcoin that Warren Buffett has shown in the stock market.
While the stock market was rather volatile and hard to figure out in 2016, Warren Buffett added to his 3 tips this sentence:
“The money is made in investments by investing, and by owning good companies for long periods of time. If they buy good companies, buy them over time, they’re going to do fine 10, 20, 30 years from now.”
You can translate this way of thinking to Bitcoin. Here's how I would translate this into the Bitcoin world:
“Money is made by protecting the fruits of your labor within the most secure decentralized network in the world. If you believe in Bitcoin, buy it over time, you will be a big winner 10, 20, or 30 years from now.”
While everyone seems to be panicking with the current price of Bitcoin at $20K, it's primarily speculators who are having nightmares because they don't know what to do. They are afraid of missing the bottom and that the price will go much lower. Because in the current context, the price of Bitcoin can go much lower. Anything is possible with a free market.
As a Bitcoiner, the current situation is a dream for you. You will be able to reach your goals faster with Bitcoin. For some, it's owning 0.1 BTC. For others, it's owning 1 BTC. Whatever your goals are, they will be boosted by the current Bear Market.
You are going to buy Bitcoin, continue to HODL, and above all not make the mistake of looking at the price of Bitcoin too often. It's simple, your goals are at least 10 years away. No need to worry if the price of Bitcoin drops to $15K or $10K tomorrow.
The three questions I ask myself that make me want to buy and HODL Bitcoin
The only three questions we need to answer as Bitcoiners are, in my opinion:
Are the fundamentals of Bitcoin preserved and even strengthened?
Will the adoption of Bitcoin continue in the future?
Will the price of Bitcoin go higher because of accelerating adoption in the future?
My answer to all three questions is yes. Under these conditions, buying Bitcoin at $20K when “only” 130 million people on Earth have already adopted Bitcoin seems to me to be a unique opportunity. That is my feeling. It may not be yours. If it is, you should follow what your sense of logical reasoning tells you to do.
Because basically, everything is based on our understanding of a situation after taking different information. I am giving you some information here to help you understand my point of view. From there, you will be able to make a better decision. Whatever decision you make, it will be the right one, because you will have made it in full consciousness. You will be fully responsible and will have no regrets.
It's up to you!
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Amid the Cryptocurrency Crisis, Sam Bankman-Fried Is Emerging As the New Strongman of the Sector. The founder of FTX and Alameda Research is involved in the consolidation.
The 7 Stages of a Bear Market – Where Are We With Bitcoin? Probably between panic and accumulation/stabilization.
Bear Market Gold Lesson: With Cryptocurrencies, You Must Learn to Separate the Wheat From the Chaff. This is the perfect time to do what should have been done before.
The Unfair Advantage You Have Over the Smartest People to Get Rich. There is no need to try to create unique things to become rich. There is a better way.