Owning Bitcoin is the Path to Financial Freedom
Bitcoin (BTC) is digital gold in the modern age of humans having a dual identity: our physical selves in the "real world" and our digital selves on the internet. These days, it doesn't matter where you are on the planet - a large % of the population lives a digital life alongside their normal reality.
This wasn't the case just a few years ago. The adoption of the internet on a global scale continues to outpace the adoption of really anything else. This is due to:
- Better global internet coverage (soon to be 1000x improved by things like Starlink)
- Better and cheaper smartphones
The majority of the planet is moving head-first into this digital landscape and digital money is becoming ever more important.
What Normies Think About Bitcoin
I frequently talk to people IRL about Bitcoin. As I'm sure many of you have experienced a similar path, I'm known in friend and family circles as "the crypto guy". Take it for what you will, I don't love the description, but I do always answer fields of questions related to Bitcoin, altcoins, regulation, "if its going to 0" etc.
It always comes down to this:
Should I buy Bitcoin? Should I buy XYZ token? Will I make money?
That's always the underlying questions that people want answers to.
My answer:
I have no f*cking clue.
Owning Bitcoin is the Path to Financial Freedom
At the heart of why people ask these questions is their ultimate desire: human greed. They want to make money. They want to invest in something today and sell it tomorrow for more than they bought it for. The want:
- A nicer car
- A nicer house
- More money for retirement
- ...
In my opinion, BTC is the single-best way to achieve this over long time-periods. We're still early in the adoption of this radical and important technology. Bitcoin will change the world - I would argue that it already has - and you can own a piece of digital gold for a new era of humans and our usage of technology.
But How?
I will frequently give a general talk about why I think BTC is going to rise in value over the long-term but things in the short-term are far more unpredictable.
Then I will get hit with examples of how "their friend" bought Bitcoin at $50k and lost money on it last year.
That's cool and all, but they did it wrong. Dollar Cost Averaging is the only way to reliably invest in crypto over long timeframes. For normies, I would say that it is a death sentence to do anything but dollar cost average into crypto. Timing the market is nearly impossible and in fact, even the best investors in the world (Warren Buffett) will not time the market.
Do you think you have more knowledge, resources and access to information than Warren Buffett? If he won't time the market on stocks, why should you time the market on Bitcoin?
What About Altcoins?
These normies will then ask me "what about XYZ altcoin? Can't it go up more than Bitcoin?"
For sure. Altcoins have smaller market caps than Bitcoin. It's entirely possible - and I've experienced it first-hand - that your altcoins can outperform your bitcoin position.
That being said, what makes you qualified to know enough about an Altcoin to "pick the winner"? What makes you think every altcoin is going to succeed.
Unless you have intimate knowledge and hundreds of hours of research into any given Altcoin, then I would say that you should stay the hell away from them.
I obviously hold a lot of altcoins. LEO, RUNE, HIVE, CUB, POLYCUB. I think there are certain use cases out there and certain projects that I am intimately familiar with and so, I am comfortable with the risks. Normies don't do this kind of research. They just "hear from a friend" and then hit buy on some random ticker symbol.
In my experience, if you ask them what that altcoin does or represents, they have little-to-no idea.
Back to Financial Freedom
The reason why I included the sentence about why people are even interested in buying crypto is because of this: their real goal tells you what they should do.
They want a nicer car, house or better retirement. They want more money for whatever it is they want more money for in their life. They are not interested in learning about a project and what they can accomplish if their technology gets adopted. They're interested in buying something that they can sell for more money at a future date.
In my opinion, this leaves them with 1 option:
- Digital Gold. AKA Bitcoin.
The path to financial freedom is not easy but in my opinion, there is a market opportunity that has existed only for about 10 years and exists right now in this moment as well. I'll give you the exact steps that I took and still follow these steps today. I am financially free from following these steps and I still continue to follow this strategy so that I can continue to build wealth, invest in things I believe in (LeoVerse) and live the life that I want to live:
Step 1). Setup an automatic dollar-cost average strategy to buy Bitcoin
You can do this via Coinbase, Cash App, or a plethora of other apps. Find an app that suits you best and set it up.
In the future, if you get meaningful money in there, do some research and learn about more secure wallet options. I personally like Ledger Hardware wallets.
But for now, just setup the automatic buys. The buys should be equal amounts on a consistent timeframe.
- $100 worth of BTC every Friday
- $10 worth of BTC every day
You get the idea.
Step 2). Work your job or business or whatever you do for a living
You haven't achieved financial freedom yet, fren. Keep working that job. Keep bringing in revenue. You're using that cash flow to deploy it into your financial freedom strategy. Focus on doing good work and maybe even aim to make more money so that you can increase your daily, weekly, etc. buys of Bitcoin.
Step 3). Forget that the BTC is There
No you're not going to time the market. You're not going to sell it at $23k so you can buy it back at $16k.
You're going to leave your Bitcoin alone. You're going to let it grow from your daily/weekly buys. You're going to wait for years before you even touch it.
Step 4). Wait
This is the hard part that is seemingly impossible for the average person to follow. You're going to let your BTCs stack. Let digital gold do its work and grow over long timeframes. The longer you can wait, the better.
If the next bull market comes and you see BTC go up, you will know when its time to take some profits. My preferred way to take profits is the same as my preferred way to buy bitcoin: dollar cost average out.
DCA in. DCA out.
When Bitcoin achieves some material average price - say, your portfolio is 2x - begin DCA'ing out, if it makes sense with your goals. Maybe you wait for 3x or 10x. That's something only you can know.
Personally, when BTC enters a bull cycle - I know it. My bag is mooning and I immediately start DCA'ing out on a daily basis. I sell a small % of my crypto each and every day and take profits off the table and into fiat / stablecoin investments to wait for the next time to DCA back in.
Conclusion:
- Owning BTC is owning digital gold
- Normies only care about crypto to make $$ for their lifestyle
- Timing the market is a fool's errand
- Altcoins are for intimate investors, not normies
- Financial freedom is a simple 4-step process
- That process is simple but it is also extremely difficult to stay disciplined. 99% fail, will you be the 1%?
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Can I replace the word Bitcoin with Hive in this article 😂😎
This article gives me hope and motivation because my ultimate goal is to earn from the internet in order to live without worrying about money or working as an employee
I have seen you writing the #bitcoin posts every cycle. I mentioned somewhere before when I read the article you wrote on Hive where you put the BTC DCA analysis. That was my first exposure to BTC buying strategy. Of course, I did not follow your strategy. Had I followed, I will be sitting on a lot more BTC that I have right now.
The other thing I want to note - please spare a paragraph on what you mean by financial freedom so that we have a baseline understanding. I have an idea what it means to be financially free. It may be only me but that would help :)
I think there are a few things that scare most people about Bitcoin or cryptocurrency in general, most of the time is not that they dont understand it since I have talk to other ppl who are very intelligent and capable on their field and most are afraid of this two things, there is no central bank of Bitcoin and that Bitcoin is not backed up by any bank or country, things that most fiat currency have, we human fear what we dont understand, we can count volatility as a third matter and I understand that nobody likes 30?% or 40% ups and down, probably in the next decade we can see a bigger audience interested in crypto with more confidence, thx for sharing @khaleelkazi ✌️
Very well said.
I think a good way to look at it is:
Short term you will probably lose money. No, no probably; you will lose money. Long term, you will make money.
The challenge is sticking with it and not panic-selling when the bears come.
What do you think of Ordinals / NFTs on Bitcoin L1?
I totally subscribe your DCA strategy for accumulation while It is not clear to me that DCA OUT would be a good strategy since the duration of the Bull and the top is shorter than the accumulation time IMO, in any case, yes, I would sell some of the profits before reaching the top in order to enter them later on as I have done in the past.
Definitely, but holding it on a short term to me is definitely not a good idea, Long term investment is definitely the best at all time
btc is more valuable than gold because when btc was created it was worth $1 and today it is $23k. We can see that btc can go to $90k in future.
Basically I do this with hive and with actions. I think the biggest difficulty for people is to have focus and discipline, the "basics" are difficult for most investors.