The Way You Feel RIGHT NOW Is Important to Remember — You Will FORGET

hey everyone Bitcoin dipped as low as something like $78,000 today and the whole stock market is freaking out the stock market is way down everything's way down people are freaking out about tariffs they're freaking out about everything the whole world economy is freaking out right now and it's dragging Bitcoin down with it so I think it's super important that you remember what it feels like right now and the reason for that is the asset the journey with any high-erforming asset is going to feel like this multiple times along that journey and what everybody be wants is a very high performing asset that does not have gut-wrenching volatility that asset does not exist 100% of very high performing assets from time to time have gut-wrenching volatility for example Amazon in the.com bust even though most of the uh impacts had nothing to do with Amazon directly the stock price of Amazon dropped by 94% if you can imagine a very high conviction person who had a huge percent of their net worth in Amazon that that uh position dropped by 94% now over time over a series of years it recovered and ultimately Amazon became one of the best performing stocks in the world but that was after a 94% price correction which is brutal by anyone's estimation so the price correction for Bitcoin right now is I don't know 27% 29% uh maybe it touched 30% but I think it's still under 30% anyway whatever it is um you've got to understand that the that is the journey the journey with a very high performing asset is it's going to feel this way and I've noticed something interesting which is that everybody forgets what this feels like after some time has passed so it's gut-wrenching when it's in it but after some time has passed they think "Well that wasn't so bad it was just you know part of the journey." Uh it reminds me and this is the certainly an analogy I have no experience with whatsoever but people tell me that you know having a baby is super painful and they also tell me that after time passes that people forget how painful it was and you know then they end up having another baby and then about the time they're going through it they're thinking I remember now how incredibly painful that was uh the process of labor and all of that again I have no idea what I'm talking about i'm a guy i've never been in labor but enough people have told me that's what their experience is that I figure it's seems like a corollary um which is hey after some time passes you don't remember it being as painful as it was and then you know everybody sees your sweet baby and they're like oh how sweet and of course nobody's thinking of the fact actually that was pretty painful process that it was uh it took to bring something new into the world while Bitcoin is still in the process of being birthed as the new uh monetary system of the world and the volatility is painful it is painful when the price drops by 30% it is painful um I still think we're in the you know the early stages of of you know huge worldwide adoption nothing nothing has led me to believe that that is not the case uh we had the uh strategic Bitcoin reserve was signed into law a couple days ago uh either yesterday or the day before um the office of the um comproller of the currency announced that all banks would be allowed to custody Bitcoin on behalf of their customers so one day you'll be able to walk into any bank in the world and tell them you want to you want Bitcoin rather than US dollars and they'll be able to do that for you i should say any bank in the United States um so anyway so all of the indicators are positive about Bitcoin other than that the macro stock market the whole stock market uh had its worst day since uh 2022 so the first the worst day in two or three years happened today on the stock market and not surprisingly Bitcoin got dragged down a bit with it that's just what happens people panic they sell what they can not what they want to people act irrationally as Warren Buffett says be greedy when everybody's scared and be scared when everybody's greedy well over the last month or two everybody went from super greedy to super scared and that drags down all assets with it so um anyway so number one observation is everybody forgets how gut-wrenching these draw downs were and they all just remember the happy thoughts of how they acquired a bunch of Bitcoin for comparatively cheap um or at least held on to the Bitcoin they had through the gut-riching downturns and emerged on the other side holding a lot more Bitcoin the other thing that happens is that nobody who didn't go through it seems to have an appreciation for what it was actually like just like it's probably impossible for any guy to understand what it's like to give birth to a baby because no guy ever has um it's the same and well again I'm not comparing these two because obviously child birth is far more painful than a stock market correction um but the correlation of people um people uh you know people don't understand who have not been through it is the point I'm making with that uh with that connection and the same will be true in the future bitcoin will one day be worth a million dollars a coin um people will ask you oh when did you get into Bitcoin and you maybe you'll say 2024 maybe 2025 and they're going to say oh well what was the price of Bitcoin back then and it's like oh it was it was around $100,000 i mean you know it was over for a little while but then it was under for a while and they're going to tell you I promise you they're going to tell you "Wow you got so lucky you got so lucky that you were buying Bitcoin around $100,000." Nowhere in their mind will it will they contemplate the fact that somewhere someone bought Bitcoin for 100 for two or $109,000 that's right now worth $78,000 and the the gut-wrenching experience it is to be down on an investment and to have to have the courage to hold regardless even when you're down to still have the courage to hold nobody understands how gut-wrenching that is unless they've been through it now if somebody's been through that with other assets in the stock market maybe it's Tesla stock maybe it's Amazon stock maybe it's Google stock or you know anything like that maybe it's Nvidia stock if somebody's been through it they understand but understand it but if they have not been through it uh they don't understand it and what they what they ultimately do is they feel like you got lucky you got lucky because you just bought a bunch of Bitcoin and then you just sat on your hands and it was all roses and everyone was happy and it wasn't hard and here you are with Bitcoin you bought around $100,000 when Bitcoin's at a million dollars and you're up 10x on your investment and you know a thousand% gain and people are like "Oh well you got lucky you know lucky you." And no it's not lucky you you did the work you did the research you studied you made a high conviction bet on Bitcoin you did it and then the price went all over the place which it does in the near term you went through a gut-wrenching 30% price correction or whatever it is now maybe it'll be more maybe it'll be less you know by the end of the day who knows you went through the gut-wrenching volatility until your investment was solidly up once it was solidly up the gut the you know gut-wrenching volatility is not nearly as gut-wrenching because at least you're up um but anyway you went through that and you have to go through that to get the upside there is no high upside low volatility asset that asset does not exist if you have an incredibly high value upside asset it will be volatile for all the reasons I've covered on other videos it will be volatile there is no high-erforming huge upside asset that does not have gut-wrenching near-term volatility they go together they always go together in fact in many ways you can tell how much upside an asset has by how gut-wrenching the near-term volatility is assuming it's an asset that ultimately wins in the end which I obviously believe Bitcoin will it's obviously possible to have a high volatility asset that performs poorly in the long term but high volatility at least tells you that the asset has the ability to be a very high-erforming long-term asset because there is no such thing as a very high-erforming huge upside asset that has low volatility that's a nice smooth ride that asset does not exist if you want the upside you got to stomach the volatility they just go together so that's where we are in Bitcoin right now uh it just is what it is so uh principle number one the you know the volatility is gut-wrenching um and and secondly you will forget how gut-wrenching it was as soon as it's not you know as soon as the price goes back up you'll forget how you felt right now it's helpful and part of the reason I'm recording this video is so I can post it later and say "Hey everybody you know we just dropped from 150,000 to 120,000 remember how gut-wrenching this felt well remember when we dropped from 109 down to 78 well here we are again." So I figure I better record a video so that uh you know I can post it in the future when people are feeling the same way and they've totally forgot that that's just comes with the territory uh and then last question you may be wondering is is it gut-wrenching for someone like me yes uh not nearly as much as obviously it was in the early days cuz once you've been through it a bunch of times it just doesn't pay to do as much uh but I know there are people out there that bought at 106,000 or 98,000 or 95,000 and they're feeling that gut-wrenching feeling for the first time my heart goes out to them it's impossible for me not to feel their pain a little bit um even though I'm obviously not experiencing it directly myself I still vicariously participate in their suffering when they're going through their first sort of Bitcoin price correction and they don't know that this is normal they don't know that the price always bounces back they don't know that one day they'll it just won't really pay them and even for me I mean I've got for liquid assets I got 99% of my liquid assets in Bitcoin but that doesn't mean I don't have needs from time to time for example I just had my uh some an addition built on my driveway so that I have room for one extra vehicle u since one of my kids is turning 16 and we're going to have one extra vehicle it's got to have a place to park and I don't want it parking in the mud on the road um so I had like an extra parking spot built on the side of my driveway well there's a cost associated with that and as soon as the person who did it they did a great job as soon as they call me I'm going to have to pay them and I would absolutely rather pay with Bitcoin that is not at $78,000 it is super painful to pay for something like that with $78,000 Bitcoin i would much prefer to be paying with $95,000 Bitcoin or 190 you know $109,000 Bitcoin because it means that concrete work is radically discounted so some of the Bitcoin I bought was above $100,000 per coin and of course it's painful to pay for anything with Bitcoin even though I've acquired you know a lot more Bitcoin even since then in the last couple weeks in the 80,000s yeah I think the most recent big purchase I did was I don't know 87,000 a coin something like that which is when I bumped from like uh 97% of my liquid net worth in Bitcoin up to 99% of my liquid net worth in Bitcoin it was somewhere in the mid to high 80,000s so yeah it's it's painful a week or two later to turn around and have to pay for concrete on your driveway in a US dollar deal i mean obviously the the the deal was priced in US dollars so it wasn't priced in fractions of a Bitcoin it was priced in US dollars which means that Bitcoin's down um I've got to pay with more Bitcoin so it's painful to part with more Bitcoin especially when a week or two or three or five back it would have had to part with way less Bitcoin uh to pay for the same amount of concrete work but you know what you win more than you lose and in general I've been way more up than I have down and so if I've got to pay for some concrete work because the guy calls and says the job's done and you know I'm swinging by and picking up a check well that money's got to be in my bank account so the check doesn't bounce so yes that's painful and it is possible that I bought some Bitcoin at $87,000 and I'm paying for concrete with $78,000 Bitcoin a week or two later that is absolutely possible if the person calls today but you know what the same is true in the reverse and far more often I have bought Bitcoin at 67,000 and paid for something at 87,000 so you're not going to win every time you're just going to win more than you lose on that sort of thing and I could dip into the last 1% of my liquid assets that are not in Bitcoin and pay for that concrete work with that but at 99% of my liquid assets in Bitcoin that seems irresponsible and it leaves no cushion whatsoever and my wife who manages a very small you know reserve fund of basically emergency reserves um we don't want to have to dip into that um to pay for you know her college tuition or her grad school tuition or my daughter's college tuition when she starts in the fall um so in I want to leave you know a tiny amount of US dollars in case Bitcoin is radically down for a day like today i'm not I don't have to liquidate Bitcoin uh on a moment's notice to pay for some major expense i'd rather at least have the option to to uh use US dollars in that 1% of my own reserve rather than have to dip into Bitcoin on a day like today um but I have thought about it i have thought you know I could go ahead and take my Bitcoin exposure up to 99.5% and pay for that concrete work with uh you know with US dollars instead of Bitcoin and or I don't I don't It's not like a half a percent it's I'm It's a hypothetical i don't know what percent it is it's obviously a small percent but I don't know what percent regardless of what it is I could I could take my Bitcoin exposure above 99% by paying for that with US dollars but again it feels at least slightly irresponsible when I'm already at 99% Bitcoin uh as far as my liquid net worth and I certainly don't want to have to ask my wife to dip into you know the emergency reserve she handles for stuff that should be able to be handled by the you know the 1% uh reserve that I've got that's not Bitcoin um so yeah it's painful when the price is down because it's no fun paying for stuff with more Bitcoin than you were hoping you had to but again you know total on you know I'm a I went from my cost basis is let's use a round number probably 30,000 a coin uh obviously I've got Bitcoin that I bought as as cheap as 6,400 um most of the Bitcoin I bought in between 2017 and 2018 was probably around 9,000 per coin something like that um but a bunch more Bitcoin in 2021 2022 2023 2024 and 2028 so my average cost basis for all of my Bitcoin is probably 30,000 a coin something like that so yeah it went from you know I was you know it was up more than 3x to now it's only up you know more than 2 and a halfx so you got to zoom out instead of focusing on the fact that wait I'm down compared to where I was you got to focus on yeah but I'm still way up compared to my cost basis and everybody that's buying Bitcoin anywhere close to $100,000 the same will be true one day if your cost basis ends up all in let's call it $100,000 averaging out all the Bitcoin you end up buying you know in this sort of rough 2024 2025 time frame if you end up with a cost basis of 100,000 and then it rolls up to $400,000 a coin and it drops to $300,000 a coin you'll feel exactly like I do which you'll think dang it I'm paying you know 25% or 33% more for everything I buy than if I had bought it at 400,000 a coin now that it's only 300,000 a coin you got to zoom out and say "Yeah but I got to focus on the fact that I bought it at 100,000 a coin so I got to zoom out and realize that paying for stuff with $300,000 Bitcoin that you bought for $100,000 is great even if a series of weeks or months previously it was $400,000 a coin and everything was even more discounted so when in doubt zoom out it is a fantastic time to buy Bitcoin right now at $79,200 a coin it's a fantastic time and just remember you will feel this way again whatever gut-wrenching feelings you are feeling right now I felt in 2017 and 2018 i felt in 2022 and in 2020 i felt those same feelings in 2020 uh I felt those feelings in 2022 i felt those feelings every step along the way of Bitcoin's tumultuous journey to becoming the financial system of the world i felt those feelings now thankfully the more you feel them the less you feel them so with repetition they start to phase you less but if you're like me and you've told a lot of people about Bitcoin that means some of your friends you know who are new to Bitcoin are going through it for the first time and it's impossible not to you know feel their pain to some degree so um great job for those sticking with it which is everybody I know i'm not aware of anybody that's selling Bitcoin right now obviously someone somewhere in the world is selling Bitcoin otherwise the price wouldn't be down but I'm not aware of anybody I know that is has onboarded to Bitcoin as a result of my efforts i'm not aware of any of those people that are selling Bitcoin uh other than obviously needs to support their family and their you know lifestyle and you know make their life and their family's lives better in whatever way they are doing that obviously that is always the case um but I'm not aware of anybody that is selling Bitcoin just to get US dollars um so good job for you and just remember one day in the future when people says you got lucky because you bought a bunch of Bitcoin around $100,000 or whatever it was just remember that you did the work you had the conviction and you went through the gut-wrenching ups and downs which is the only thing that makes you deserve the upside if you can't handle the downsides you don't deserve the upsides the two always go together if you don't have that conviction you're not you're not going to make it and that's that you got to have that conviction and nobody gets lucky and buys all their Bitcoin when it's radically on sale right now it just that never h I mean it just never happens that doesn't mean people don't add to the amount of Bitcoin they have but as far as people who buy it for the first time almost nobody buys Bitcoin for the first time at a time like this because everybody's freaking out and nobody wants to buy Bitcoin for the first time when everybody's freaking out so uh the people who are buying Bitcoin for the first time are almost always buying it when it's not in a dip like right now um thankfully over time people their conviction grows and they add to their Bitcoin in a time like this when it's radically on sale so good for them a couple people have messaged me and says "Hey you know I just bought Bitcoin at 78,000 you know it's gut-wrenching but I just bought it uh because you know now my cost basis is a lot cheaper uh so good for you a bunch of people are doing that if you've got US dollars that are uh you know that you could possibly spare it's a fantastic time to buy more Bitcoin other than that just be patient be patient and this too shall pass so have a great day everyone thanks so much keep up keep the faith bitcoin always recovers which is what makes it such an incredible asset and this is just the growing pains and the birth process of becoming the future monetary system of the world there's no way around it but keep the faith and days like this are gut-wrenching the reward is on the other side thanks everyone