What to do when the bitcoin price dips?

What should you do when the Bitcoin price dips? Well, first thing you need to do is figure out how much Bitcoin do you actually own as compared to all of the other assets you own. So, it's called your net worth. Your net worth is all your assets minus your liabilities. Another way of looking at it is just toting your assets. Like, okay, of all the things you own, how much are they worth? So, then figure out how much Bitcoin do you own as a percentage of that? Because a lot of people own a lot less Bitcoin as a percentage than they think. So, psychologically, they're thinking, "Yeah, but I I bought like $200 of Bitcoin and I'm like waiting to see if it goes up or even $2,000 of Bitcoin." But if your total net worth, including the equity in your house, however much you've paid off, vehicles, cash in all your bank accounts, your 401k, you know, retirement funds, if all of that adds up to $100,000 and you have $2,000 in Bitcoin, then you have 2% of your net worth in Bitcoin. I would argue 2% is a very small percent. And I would find a way to get more of the retirement funds in Bitcoin, more of whatever is in Bitcoin. The reason I have as much Bitcoin as I do is because every time the price dipped, I went on this basically hunt like a squirrel for a nut trying to find something that was not already in Bitcoin that I could convert to Bitcoin. And I did what everybody initially does when they buy Bitcoin for the first time is I bought a little a little bit of it, you know, which for me a little bit of it was still, you know, more than some people's version of a little bit of it, but it was a little bit in that even if it went up 10x or 100x in value, it would not really have changed my net worth that much because I just didn't own that much. Uh, but over time, I realized that the right way to think about how much Bitcoin I own is not the dollar value of the Bitcoin I own. And whether that seems a lot or a little for something risky, Bitcoin is actually not nearly as risky as people think. It's one of the least risky things you can own. But if you think about it in, okay, I own $200, I own $2,000, it's easy to think, oh, I own a lot. That's a lot. But the truth is, you've got to compare it to your total net worth. Because if it's $2,000 out of $100,000, that means 2% of your net worth. That means if it goes up by a factor of 10, which I think it will in the next 5 or 10 years, that means 2% turns into 20%. 20% more wealth in your life is not a transformational amount of wealth. And so you got to put more than 2% at risk. Now the number one financial adviser in the uh in the world as far as like he started the largest independent uh financial advisory firm uh the guy's name is Rick Edelman. He recommends the most conservative people have 10%. And the most aggressive people have 40%. But again, my guess is when you compare the amount of Bitcoin you own as compared to all your assets, including the equity in your house, 401ks, IRA, retirement funds, emergency funds, when you compare it to everything, it's probably a lot smaller percentage than you realize. So what I did every time Bitcoin was dipping is I find found some new amount that I could put into Bitcoin. So it started with just small amounts. Then I put more and more in of just like savings and you know investments I had in the bank. Then I moved some of my stock portfolio to Bitcoin uh by selling it and buying Bitcoin. And then I put even more in my stock portfolio. Finally, you know, back in 2024, the biggest dip in 2024, I converted my entire 11-year 401k at Bombgar Corporation into Bitcoin, which initially I had not planned on doing because I was like, I'll just put everything else in Bitcoin. And then this retirement fund I'll have not in Bitcoin. But again, the price dipped and I was like, I need more Bitcoin and I'm and my conviction level was higher at that point than it had been previously. So I'm like, okay, I have a high conviction combined with not enough Bitcoin. So I'm willing to put assets in Bitcoin that I previously was not willing to put in Bitcoin, including my entire 11 years of Bombgar Corporation 401k, which was between 2003 and 2014 when we sold the company the first time. Uh but they again the same thing back in 2022 or 2023, the year before 2024. um 2023 when the price was just dipping and dipping and dipping. I just could not come up with any additional capital other than that 401k which I had not considered putting in Bitcoin at that point. Um and so I had, you know, my charitable giving fund. So I put more than half of all of my charitable giving funds in Bitcoin at a price per Bitcoin of $22,000 per coin. So obviously that is up like 500%. I mean, not 5x. I've 5xed those charitable giving funds, which means I have way more financial resources for charitable giving than I would have. So, every time the price dipped, I've gone on a search to find something that would get me more Bitcoin. The current quest I'm on is to sell the silver and gold coins I have back from 2017, which again, I'm going to take a massive haircut on the silver. Probably not as bad of a haircut on the gold, but I just got to find a place to sell them. If I ship them to AppMex, I'm going to pay for shipping. And if I can find someplace in central Mississippi where I can dump gold and silver where I don't take a blood bath of a haircut to convert that into Bitcoin, I will absolutely find a way to do that. U but anyway, that's that's my recommendation. My recommendation is buy more Bitcoin when it's on sale. If you are not sure where you're going to get the financial resources to buy more Bitcoin where it's on sale, start by evaluating every financial resource you have. figure out what are your total assets, what are your total net worth, what percent of that is in Bitcoin, and is any of that not in Bitcoin that could be in Bitcoin. And um again, I do not recommend debt to buy Bitcoin, but I do recommend just being smart about it. Whatever you can put in Bitcoin, and most people have something that could go in Bitcoin that's not already in Bitcoin. And the greatest returns you're ever going to get on Bitcoin is the Bitcoin you buy that is the most on sale. The more it's on sale when you buy it, the greater returns when it's not on sale anymore. That's how investments work. Bitcoin is on sale right now, which means I and everyone else is scrambling around trying to find a way to free up additional capital to buy more Bitcoin. And I would recommend you do the same. Uh your future self will thank you.