Why is bitcoin down today?

00:02 Why is Bitcoin down today? Let's talk 00:04 about it. Uh, first off, I don't really 00:06 know because it doesn't really matter 00:08 because nothing's wrong with Bitcoin. 00:10 So, every time the price changes, people 00:12 start freaking out. They want to know 00:14 why is it down, why is it up, why is it 00:16 down? Well, if you ever want to know, 00:17 the best way to find out is to Google 00:19 the word Bitcoin. And in the advanced 00:22 search options, it lets you set it where 00:24 you can say to show only the results 00:26 from the last 24 hours or the last seven 00:29 days. So, if the price changed in the 00:31 last 24 hours and you want to know why, 00:34 uh, the easiest way to find out is to 00:36 Google the word Bitcoin. And if the 00:38 price changed in the last 24 hours, set 00:40 the search the advanced search option to 00:42 only show results in the last 24 hours. 00:45 If the price changed in the last week, 00:47 but not the last 24 hours, like you want 00:49 to know why did it change, you know, two 00:51 or three days ago, then set it to the 00:53 last week rather than the last 24 hours. 00:57 You just read the news headlines. 00:58 usually some combination of CoinDesk uh 01:02 and 01:03 um what is it uh 01:07 Cointelegraph usually the main the main 01:09 news organizations that are going to 01:11 tell you why it changed or Cointelegraph 01:14 or CoinDesk although I think they 01:15 switched to subscription so I would not 01:17 bother with that it's not worth it or 01:19 routers however you pronounce that 01:22 routers routers 01:24 sometimes you can get the associated 01:26 press anyway um So there's a bunch of 01:29 different things that you can read and 01:30 you just read the headlines of why it 01:32 said things changed. So this morning 01:34 when Bitcoin was at 115 something 01:36 thousand I googled the word Bitcoin. 01:39 There was a few news stories about tens 01:40 of thousands of Bitcoin being deposited 01:42 to Galaxy which is a trading platform. 01:46 Uh people hypothesized that it was going 01:49 to be sold. Um there's other news 01:51 stories about how Michael Sailor is 01:52 raising $2.8 billion dollars to buy 01:54 Bitcoin. So, you know, that should 01:57 offset, you know, whoever's selling. Uh, 01:59 that's a lot of buying. Um, but who 02:01 knows? Who knows? The reason I say it 02:04 doesn't matter is because once you own 02:07 Bitcoin long enough, your average 02:09 acquisition cost is far enough in the 02:12 rearview mirror that it just doesn't 02:15 matter. So, for example, my average 02:16 acquisition cost for Bitcoin is in the 02:19 ballpark of I think uh $35,000 02:22 is the sort of the best I can estimate 02:24 is $35,000. So, at an average price of 02:27 $35,000 with Bitcoin at 115, I'm living 02:31 life at a radical discount. However much 02:33 down 115,500 02:36 is compared to 35. What is that? That's 02:39 like 70. I don't know. Let's call it 70% 02:43 off. It's more, you know, should be more 02:44 than that, but whatever it is, 02:47 70% off. So, I'm living life ballpark 02:50 70% off. Now, was I living life 71 72 02:54 73% off a few couple days ago? Yeah. 02:58 At at some point, if you're living life 03:00 70% off, 71 72 73, you're living life a 03:04 lot off. It just doesn't matter that 03:06 much if you're a few percentage points 03:08 higher or lower. We were chilling for 03:11 quite a few days at 118,000. So, you 03:14 know, that's great. And for a short 03:15 period of time, we were above 124% and I 03:18 was living life even more at a discount. 03:20 Now, in the school coin I've ever 03:23 acquired, you know, divided by or one 03:26 number divided by the other of all the 03:28 money I've ever spent acquiring Bitcoin, 03:30 uh the other way I look at it is uh I've 03:33 talked about before that, uh back in the 03:36 fall of 2022, I bought 18 months of 03:39 living expenses in Bitcoin, put them uh 03:42 paired it to a Coinbase debit card, and 03:45 I've been living for free on Bitcoin 03:47 ever since because the price of Bitcoin 03:49 is going up faster than I've been 03:50 spending. it. So, I have been living for 03:52 free, which is another way of looking at 03:54 it. Uh, I've been living for free for 03:56 the last two and a half years. All of 03:58 the end of 2022 plus all of 23 plus all 04:01 of 24. Uh, and then the first half of 04:04 25. So, more than two and a half years, 04:06 I've been living for free. Um, now, what 04:09 happens when the price dips? Uh, last 04:12 time I checked, I went from 18 months of 04:14 living expenses when I started the 04:16 strategy to three and a half years of 04:18 living expenses. So when the when the 04:20 price goes up to like $118,000, 04:23 I end up at like 3.7 years of living 04:25 expenses. When the price dips to 04:28 $115,000, 04:29 I dip to like 3.4 years of living 04:32 expenses. But again, I started with 18 04:34 months of living expenses. So I've been 04:36 living for free for two and a half years 04:38 and I still have three and a half years 04:40 to go. So as the price of Bitcoin 04:42 fluctuates, yeah, the amount of runway I 04:45 have before that money theoretically 04:48 runs out. Now, I don't actually think 04:49 that money's ever going to run because I 04:51 think the price of Bitcoin for my entire 04:53 life will continue to go up faster than 04:56 I spend it with that Coinbase debit 04:58 card. And if that is the case, the 05:01 runway will get longer and longer and 05:03 longer, you know, all the way through my 05:05 natural life. Um, which is what's 05:08 happened so far. Uh, but in the 05:10 meantime, yeah, that goes up and down. 05:12 Sometimes I have a runway of, you know, 05:14 I can live for free at the current uh 05:16 expense rate for 3 and 1/2 years. 05:18 Sometimes it's 3.7. Then the price of 05:20 Bitcoin changes. It changes to 3.4. Now, 05:23 if you're thinking, "Yeah, that's nice 05:25 for you, Joel. But what about for me who 05:27 just bought Bitcoin at 118,000 or 05:30 116,000 or 120,000 or even, you know, 05:33 111,000? You know, these little dips are 05:37 painful." Well, my answer to that is 05:39 they're painful only because you're 05:41 relatively new to Bitcoin. And over 05:43 time, they will not be painful because 05:45 you will be in the same position I'm in 05:47 where you're so far above your average 05:50 purchase price that it just doesn't 05:51 matter anymore. Also, I'll tell you 05:54 because people are always obsessing 05:55 about why, you know, why there's a dip 05:58 or something like that. One second. 06:03 And of course, dips always seem to 06:05 happen right after people buy Bitcoin. 06:06 like, you know, the day after someone 06:08 buys Bitcoin, they always feel like it 06:10 dips. Well, when when when something 06:14 going up and to the right like this or 06:17 like this, depending on I don't know if 06:19 uh Facebook mirrors the video or not, 06:21 but whatever. Up and the right or up and 06:23 to the right, whatever one's up and to 06:24 the right based on your perspective of 06:26 my camera. Um, when you're when 06:29 something's going up and it's very 06:30 choppy on the way up, that means almost 06:33 nobody's it optimal perfect point when 06:37 it dips, 06:39 someone is somewhere, but almost never 06:42 it's the average person, which means no 06:44 matter when you buy Bitcoin, it will 06:46 almost always at some point be lower 06:48 than your purchase price. And the only 06:50 way to avoid that is, I mean, there's no 06:53 way to avoid it because you don't know 06:55 what low is. It's like if somebody, you 06:57 know, came to me right now and said 06:58 15,500, should I buy it now? Is this the 07:01 bottom of the dip? I would say there's a 07:03 good chance it is, but it might not be. 07:06 Nobody knows. Literally, nobody in the 07:07 world knows. Since nobody knows, you can 07:10 either miss out on somewhere between 10x 07:13 and 100x your money by not buying now, 07:17 or you can just buy it now and not worry 07:19 about it. Let me tell you why I like to 07:20 buy it now and not worry about it. 07:22 because everything everyone is 07:24 experiencing right now with the price of 07:26 Bitcoin at 115 and then 118 and then it 07:29 went up to 123 and now it's back at 115. 07:33 Everything everyone's experiencing right 07:34 now I personally experienced myself when 07:37 I first got into Bitcoin when the prices 07:40 all had a zero removed. Okay, so here's 07:43 what I mean by that. If you take a zero 07:45 off the current price of Bitcoin, these 07:47 were the prices I was initially buying a 07:50 lot of the Bitcoin I owned back in 2017 07:52 and 2018. So people were always worried 07:56 about now again if you knock the zeros 07:57 off 111 turns into 11,100 08:01 115 turns into 11 08:05 uh etc. You just knock a zero off. 08:07 Everyone was worried about, "Oh, but I 08:10 just bought it at 11,800 and now it 08:13 dipped to 11,500 08:15 and then it, you know, might go down to 08:17 11,100 and oh no, and I bought at the 08:20 wrong time and blah blah blah." Okay. Do 08:23 you think anyone right now cares what 08:26 price between 11,000 and 12,000 they 08:29 bought? And remember, the percentage 08:31 change between 11 and 12,000 is the 08:34 exact percentage change between 110,000 08:37 and 120,000. You just knock a zero off. 08:39 And everybody was obsessing and 08:41 everybody was, you know, worried about 08:43 the exact price. I promise you, every 08:45 single person, if you went to him right 08:47 now and said, "Hey, do you just wish you 08:50 had bought as much Bitcoin as you could 08:51 at any price below $13,000?" 08:56 Everyone would say, "I wish I had more 08:58 bought more Bitcoin below $13,000." It 09:01 didn't matter if it was 9,000 10,11. It 09:04 didn't matter if it was 11,100, 11,500. 09:07 11,800, 09:09 the equivalent of where it was yesterday 09:11 and the day before. 118,000 would turn 09:14 into 11,800. Didn't matter if it's where 09:17 it is today, which is the equivalent of 09:18 11,500. 09:20 or it didn't matter if it dipped to 09:21 11,100, which is the equivalent of if it 09:24 dips to $111,000. 09:26 Everybody would buy as much Bitcoin as 09:28 they can below $13,000 no matter what. 09:32 The day will come when the same will be 09:34 true of $130,000 09:36 when everybody will be laughing about 09:38 how worried they were about whether they 09:40 were buying Bitcoin at 115 or 118 or 111 09:45 or 121. Nobody will care. Everybody will 09:49 just wish that they had bought as much 09:51 Bitcoin as they possibly could below 09:53 130,000 because when the price is 09:56 500,000 or a million dollars per coin 09:58 five or 10 years from now, it will not 10:00 make a lick of difference whether you 10:02 paid 111 or 115 or 118 or 121. It's just 10:07 not going to matter. Um, I know you feel 10:10 like it does and because I felt like it 10:13 did when there was a zero removed and I 10:15 did not have somebody here to tell me 10:17 that, hey, it felt the same way when a 10:19 zero was was removed from and everybody 10:22 was worried about whether they were 10:23 buying Bitcoin at 1,00 or 1,100 or, you 10:28 know, whatever 1,080 1,00 you know, you 10:33 know, 10, right? I mean, it's all the 10:36 same stuff. Um, and but nobody was here 10:39 to tell me that it just didn't matter. 10:41 And if they had been here, I would have 10:42 bought more Bitcoin. So, I'm telling you 10:45 in the long term, it doesn't matter. Um, 10:48 what matters is acquiring as much 10:49 Bitcoin as you possibly can, holding on 10:51 for to it for as long as conceivably 10:53 possible. And at some point, if you're 10:55 in the same position I'm in, where you 10:57 own enough Bitcoin that in my case, it 10:59 represents 100% of my liquid assets. So, 11:02 I live off of my Bitcoin. Why do I live 11:05 off of my Bitcoin? because I don't have 11:07 US dollars to live on. Uh all the US 11:10 dollars I get when I my paycheck hits 11:12 every two weeks are immediately 11:14 converted to Bitcoin. Uh and then I live 11:17 off my Coinbased debit card. And then if 11:19 I have major expenses, uh like my wife's 11:22 grad school or something like that, I'll 11:24 liquidate enough Bitcoin to cover 11:26 whatever th those expenses are at the 11:28 last possible minute. Uh allowing 11:30 Bitcoin to appreciate as much as it can 11:33 before it gets to that last possible 11:35 minute. Okay, so anyway, that's the 11:38 highlights. Same advice as always. Buy 11:40 as much Bitcoin as you can, hold on to 11:42 it for as long as conceivably possible, 11:44 and is the formula that works. Um, hope 11:47 all that helps. I'm here for anything 11:48 you need. Send me questions. I'm always 11:51 here. I love answering questions. I'm 11:53 here to serve. Thanks, everyone.