JaakkoMultanen on Nostr: Is now a good time to buy bitcoin? https://m.primal.net/MqvH.jpg Well, you guys in ...
Is now a good time to buy bitcoin?
Well, you guys in Nostr probably already know this stuff, but I'll still post this as a pointer for newbies!
Before anything else, you should understand the main reason why bitcoin exists in the first place:
The money is broken.
What you think of as "money" (fiat money), is actually a clever scheme to quietly rob you of your purchasing power - and purchasing power is the whole point of having money in the first place!
You don't want money for the sake of having money, you want the things that money will buy you. Money is just an option to get other stuff later.
Fiat money (dollars, euros etc) buys you ever less. I'm sure by now you've noticed this!
Money is half of every trade, and it being broken affects everything in our societies negatively. We can fix it - but it is up to each individual.
You need to put on your own oxygen mask first. Nobody's coming to put it on for you.
The stock market is also broken
While the causation here is quite complex, the correlation is extremely clear and tells you everything you need to know:
The stock market as a whole isn't going up in purchasing power - it only goes up with the amount of money that is printed.
In other words, you can maintain your purchasing power by investing in stocks. That's essentially saving, not investing - but you do still have to carry the risk of owning those companies, many of which are zombie companies.
Savers shouldn't have to suffer that risk!
What about bonds?
If you "invest" in government paper (bonds), you can count on your purchasing power getting diluted.
The governments are essentially bankrupt, and are mathematically unable to do anything else than to pay you less in purchasing power than what you originally gave them. Not a great trade!
Real estate?
This is a longer story, but the base logic is the same as with stocks: you can perhaps maintain your purchasing power, but carry risks that savers shouldn't have to think about.
Real estate is more often saving than investing.
Well, is now a good time to buy bitcoin?
The thing is that nobody can answer that for you - not necessarily because there wouldn't be an answer, but because of an ironclad rule I've observed over the last 10 years:
Those who do understand bitcoin (at least well enough), can and do hold onto it and are able to maintain and increase their purchasing power.
Those who don't understand bitcoin, are unable to hold onto it and get burned by the volatility: price goes temporarily down after they buy, they panic and sell at a loss, and blame whoever convinced them to buy.
There are very little exceptions to this rule, so you just have to study bitcoin to understand it. Don't just "ape in".
Asking people to buy it before they are mentally ready for the ride is a recipe for disaster, so I won't do that.
You can earn sats through zaps right here in Nostr - that's the best way to get bitcoin!
This post was a short version of my blog post, in which I answer the question:
"If the government can print money, why do you need to pay taxes?"
...among other important things. You might want to read it!
https://www.sovereignlanding.com/high-future-preference/is-it-time-to-buy-bitcoin-ultimate-answer/
Well, you guys in Nostr probably already know this stuff, but I'll still post this as a pointer for newbies!
Before anything else, you should understand the main reason why bitcoin exists in the first place:
The money is broken.
What you think of as "money" (fiat money), is actually a clever scheme to quietly rob you of your purchasing power - and purchasing power is the whole point of having money in the first place!
You don't want money for the sake of having money, you want the things that money will buy you. Money is just an option to get other stuff later.
Fiat money (dollars, euros etc) buys you ever less. I'm sure by now you've noticed this!
Money is half of every trade, and it being broken affects everything in our societies negatively. We can fix it - but it is up to each individual.
You need to put on your own oxygen mask first. Nobody's coming to put it on for you.
The stock market is also broken
While the causation here is quite complex, the correlation is extremely clear and tells you everything you need to know:
The stock market as a whole isn't going up in purchasing power - it only goes up with the amount of money that is printed.
In other words, you can maintain your purchasing power by investing in stocks. That's essentially saving, not investing - but you do still have to carry the risk of owning those companies, many of which are zombie companies.
Savers shouldn't have to suffer that risk!
What about bonds?
If you "invest" in government paper (bonds), you can count on your purchasing power getting diluted.
The governments are essentially bankrupt, and are mathematically unable to do anything else than to pay you less in purchasing power than what you originally gave them. Not a great trade!
Real estate?
This is a longer story, but the base logic is the same as with stocks: you can perhaps maintain your purchasing power, but carry risks that savers shouldn't have to think about.
Real estate is more often saving than investing.
Well, is now a good time to buy bitcoin?
The thing is that nobody can answer that for you - not necessarily because there wouldn't be an answer, but because of an ironclad rule I've observed over the last 10 years:
Those who do understand bitcoin (at least well enough), can and do hold onto it and are able to maintain and increase their purchasing power.
Those who don't understand bitcoin, are unable to hold onto it and get burned by the volatility: price goes temporarily down after they buy, they panic and sell at a loss, and blame whoever convinced them to buy.
There are very little exceptions to this rule, so you just have to study bitcoin to understand it. Don't just "ape in".
Asking people to buy it before they are mentally ready for the ride is a recipe for disaster, so I won't do that.
You can earn sats through zaps right here in Nostr - that's the best way to get bitcoin!
This post was a short version of my blog post, in which I answer the question:
"If the government can print money, why do you need to pay taxes?"
...among other important things. You might want to read it!
https://www.sovereignlanding.com/high-future-preference/is-it-time-to-buy-bitcoin-ultimate-answer/