Patience is (Still) a Virtue

Bitcoin has been hanging in the $50,000 to $70,000 range for a good bit of the year. It’s easy for newer entrants into this technology to wonder: “Does Bitcoin still have the legs to 2x… much less 5x or 10x from here?”

‍

It’s a fair question, but also misses some fundamental truths about this revolutionary asset.

‍

First of all, Bitcoin is a new form of money. It is not designed to be a means of yielding you more dollars (or any fiat currency). It is designed to serve as a replacement. So think of the current “price” of Bitcoin as an exchange rate, not it’s value.

‍

The goal isn’t to utilize Bitcoin to accumulate more fiat. The goal is to accumulate more fiat to swap for Bitcoin, or simply to earn in Bitcoin or sell valuable goods and services in exchange for it.

‍

Said differently: the goal is more Bitcoin, not more fiat. So don’t let the “price” distract you.

‍

Second, to the extent you view Bitcoin as an investment (which I don’t), keep in mind we are up some 45% since January and 150% year-over-year. Most people aren’t keeping a hawkish watch over their stock portfolio with such high expectations, and neither should you do so with Bitcoin.

‍

Your purchasing power is always increasing with Bitcoin… if your time horizon is long enough. Bitcoin is not a get-rich-quick scheme. It is a superior savings technology.

‍

And finally, to that point, it’s not advisable to think about Bitcoin as something you’ll sell or trade when it gets high enough. If you have 10,000 bitcoin, then great, go buy your Lamborghini when it hits $100k.

‍

But if you’re like the average Bitcoiner, you should be thinking five, 10, or 20 years out. How valuable do you think the most decentralized, scarce, digital form of money in the world will be worth then?

‍

Patience is still a virtue, and it’s easy to get sucked in by talking heads on TV or, yes, even Bitcoin podcasts that harp on Bitcoin’s “price action.”

‍

But the fundamentals haven’t changed. Stay patient, stay humble, and keep stacking. There is no room for distraction, leverage, trading, or games when it comes to your future financial freedom.

‍