Owning Bitcoin Can Be Risky on Short-Term, but Not Owning Bitcoin Is a Far Greater Risk on Long-Term | by Sylvain Saurel | Mar, 2022
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The key is to change your approach to embrace a long-term view.
Bitcoin is a true monetary revolution. A major paradigm shift that may be confusing to newcomers to this world. The educational system has always kept you in the dark about the economy, money, and how the monetary and financial system works.
If you ask 10 economists to explain to you how the current monetary and financial system works, chances are that you will get more than half of the answers that differ. This system is so complex to understand that no one can explain it simply.
With Bitcoin, everything is clear and defined in a 3,219-word white paper that has changed my life forever, I must admit. Ask economists to explain the current monetary and financial system in just 3,219 words… None of them will be able to.
The digital currency invented by Satoshi Nakamoto gives the power of money back to the people. You go from a system where the truth is imposed on you by governments, to a system where you are able at any time to check everything by yourself to arrive at your version of the truth. This truth is shared by all users of the Bitcoin network.
So this is something that may surprise and will have huge impacts on the world of the future.
Something as different as Bitcoin, which cannot be categorized in any way, can be frightening at first glance. You become aware of the subjective concept of value. Bitcoin is only valuable because its users decide it is. Nothing is imposed. It is a voluntary adoption that has been made since its creation.
This is the opposite of the current system, where you feel you have guarantees because governments impose a value on the fiat currencies you use. However, what governments impose on you prevents you from living your life on your own terms. The Bitcoin protocol gives you guarantees that ultimately allow you to live your life on your own terms.
Understanding this is difficult at first because you only see Bitcoin as a financial investment that can make you a lot of money.
Thus, when the price of Bitcoin is 50% below its ATH, you think that buying Bitcoin might be risky. I’m not going to lie to you, there is a risk in buying Bitcoin today at $35K if you don’t fundamentally believe in its revolution. Why is that? Simply because you will not have redefined your time horizon to apply a good strategy with Bitcoin.
So you risk selling at a loss if Bitcoin corrects further and sees its price fall below $30K.
That’s the big risk you face with Bitcoin: being able to switch from a short-term view to a long-term view. This is done by constantly deepening your knowledge of Bitcoin. If you do this, you will sooner or later come to understand that the success of Bitcoin is inevitable. Bitcoin invented the concept of digital scarcity.
The world has yet to discover what this means and the impacts that the digital scarcity embodied by Bitcoin will have on the world of the future. Positive impacts to change the world of the future for the better. A fair, inclusive system that benefits all of Earth’s inhabitants. A utopia for some, but an ideal that can be achieved in the future with Bitcoin.
I don’t know if Bitcoin will triumph in its revolution. I am convinced of it in my heart, but I can’t give you any guarantees about the future, because I don’t have a crystal ball in my possession. However, if there is even the slightest chance that everything I am talking about will succeed, then not owning Bitcoin would be a huge risk you would be taking.
The whole question is whether it is worth taking that risk. In my opinion, Bitcoin can change your life completely in every way. Of course, I suspect that initially, you are most concerned about the financial aspect. If you focus on that aspect alone, you must recognize that Bitcoin is the investment with the best asymmetric returns potential today:
When you see legendary investors like Bill Miller putting 50% of their wealth into Bitcoin, you quickly realize that some people have figured out that Bitcoin is the best asymmetric bet of your life.
In the short term, you will have to accept being misunderstood by the majority to benefit fully in the long term. That’s the challenge I think you’re going to have to face. If you can get past the financial aspect, you will understand that you have much more to gain from Bitcoin.
The most exceptional thing in my eyes is that Bitcoin will allow you to preserve your interests while preserving the interests of the collective because the Bitcoin system by its decentralized nature and its superior programmatic monetary policy will benefit everyone without distinction.
Cryptocurrency
