Bitcoin has gone mainstream. There are some people who hate me for it.

I’m getting quite a few people all asking me the same question: “Is it too late to invest in bitcoin?”

I don’t think it is. Bitcoin is a paradigm shift in a world that is high on worthless currency printed in excess. The only way to fund our excessive lifestyles is to increase the global debt and pay for it with money printed out of thin air.

My approach to bitcoin is different. It’s a little less drastic. I’ve been playing with it for years and have become fascinated by it. The rewards for me understanding bitcoin are now over 100,000%+ on the initial investment.

I don’t think I’ve ever made another investment like it. It’s likely I will never make another investment like it for the rest of my life. There may never be another investment like it.

The unfortunate psychological challenge when you buy something that performs beyond your wildest dreams is you think to yourself, “I should have bought more.” You can always want more and spend more. But it doesn’t matter. Money has never made me happy. The same is likely true for you.

So how do you manage your psychology when bitcoin mania is sweeping the world and it has gone mainstream? How do you cope when it’s trending on twitter, on the front page of every newspaper, being promoted by some of the biggest wall street tycoons in the world, like Paul Tudor Jones?

First, you stay calm.

You’re never late to anything in life. You’re right on time.

What bitcoin has done to date is irrelevant. If you haven’t bought any or don’t understand it then that’s not the issue. The issue is whether you are openminded enough to rethink everything you know about money and investing. If you are, there is opportunity.

If your mind is closed, the world is closed, and so are the opportunities.

When I first heard about bitcoin, I thought it was a joke. I made fun of my work colleagues who were buying a sandwich with half a bitcoin and loving life.

Bitcoin is extremely weird

The trouble with bitcoin is it’s not easy to understand. When people don’t understand a concept they quickly dismiss it and call it a scam so they don’t feel stupid.

There are 21 million coins. You can’t create more coins. The coins are digital. The coins are only safe if you take them off the internet Bitcoin is a way to store value. It’s not currently used as a currency to transact with and may never fulfill that need. Bitcoin is a way to protect the value you create, with code humans can’t manipulate to pay for a covid crisis or a recession. Bitcoin is a hedge. This means it’s the opposite of everything else you can put your money into. Owning both sides of a marketplace de-risks you. If you only invest your money in one thing, then if that asset has a downturn and never recovers, you lose the lot. Bitcoin is an investment in an unknown, distant future. Like I said, bitcoin isn’t normal. It confuses people and that’s what it was designed to do.

Bitcoin is a short-circuit in one’s financial thinking.

The “Too Late” Mindset Is Toxic

The too late mindset isn’t good for your psychology. It makes you feel like shit. When people think about bitcoin I quickly see them become disappointed. They wish they had listened earlier. Or they wish they had bought at least one bitcoin when the price was lower.

The problem with bitcoin is you can never buy at a good price. Why? Bitcoin keeps being the best-performing asset each year, and is now the best performing asset of the decade. Think about that. This is the superpower of bitcoin. It doesn’t matter when you buy it. What matters is that you do eventually.

Buy low, sell high

We’re taught to buy assets at a low price and sell them at a higher price. What if this was industrial age factory worker thinking?

The best time to buy bitcoin is when you decide to.

The reason is, bitcoin has a fixed supply of coins and predictable code built into it that tells you its future. You don’t have to be a genius to understand bitcoin’s future price.

A Dutch institutional investor known as Plan B created a stock to flow model which helps investors understand where the price is going based on the hard-coded, predictable monetary policy of bitcoin.

Once you understand stock to flow, then you’ll understand the overwhelming dollar value of guaranteed scarcity.