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I'm making this post after reading Marty Bent's article:
Marty is a smart guy who gives good advice, but I think bitcoin noobs, particularly those who don't have too much experience investing in traditional markets, might experience extreme stress and panic during a major market crash when bitcoin doesn't "go to the moon." This may cause them to sell at the exact worst time. It might be a move they regret for the rest of their lives.

Battle Scars

I'm not an expert investor by any means. I speak from experience. As a very young lawyer just starting my career I suffered through the stock market crash of 1987, which wiped out a good chunk of my piddly savings at the time. During the dot com crash, I got lucky because I had to sell most of my high flying internet stocks for a down payment on our first house before the bubble burst. By then, I was a libertarian and a gold bug. Like most people who discovered the Austrians and libertarianism, I embraced gold as a safe haven hedge. During the dot com crash I assumed gold would fly. What I didn't know was that in the middle of a panic, there are no safe havens. I also didn't know that panics can last longer than you can imagine.
We have all heard bitcoin described as the new gold. A great store of value. It's certainly true, but don't assume it will save you during a major financial upheaval. If anything, it will likely provide the buying opportunity of a lifetime, like it did in the "covid crash."
Here are some articles describing the behavior of the gold price during market crashes:

1987

Dotcom Crash

2008 Financial Crisis

Although we know bitcoin is better than gold, there are plenty of bitcoin "investors" buying microstrategy and bitcoin ETFs who see bitcoin as just another asset. What's worse, unlike gold, they still see it as a risk asset, regardless of what they say publically. During a panic, bitcoin will get flushed along with everything else, and maybe even more severely.
Then the talking heads on MSM will mock the very idea that bitcoin is a store of value. You won't be immune to that FUD.
After wondering why my beloved gold didn't rocket to the moon in 2008 and 2009, I learned the virtues of patience. I think even more patience will be required for bitcoin.

Marty's TLDR:

TLDR: Major monetary changes happen fast - don't wait to stack sats.
That's good advice. Just don't panic if bitcoin plummets when those big changes hit. At least try not to panic. Even seasoned pros panic. It won't be easy. Maybe the quote from the philosopher Mike Tyson is overused, but it applies here: "Everyone has a plan until they get punched in the mouth."
Maybe keep some of your bitcoin hard to reach so you can't hit that sell button. Because it will be scary and shake your confidence. And, by all means, keep some powder dry to scoop up some sats during what might be the sale of a lifetime.
Great Advice! As I'm very new to stacking sats, I feel fortunate to know what to do with my sats. I also assume that there are many young investors who are like me but due to the lack of guidance they'll sell when panick kicks in. My personal opinion on investing in hedge assets is that there's no sense investing for short term, as for Bitcoin it's destined to be used as MoE for everything in 50 years or so, noone should trade them for fiat.
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Good advice! I've seen all the Bitcoin crashes, but I only experienced one after my first. I was already “vaccinated” from bear markets in traditional markets, and, as expected, I learned the hard way. I have several years of experience in the markets, not as a trader, but as a medium/long-term investor. I needed that experience to learn that we should buy while the market is falling and sell when it's rising. We should spend Bitcoin to enjoy the wealth we've created, not watch it vanish when the bears come. If it's not like that, when will we enjoy the wealth we've built? When we're old and bedridden? Being contrarian is easy to talk about but hard to execute. What's important is having a plan and sticking to it without hesitation. The best advice I can give is to keep things as simple as possible and always think in the medium/long term.
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I needed that experience to learn that we should buy while the market is falling and sell when it's rising. If it's not like that, when will we enjoy the wealth we've built?
Could you elaborate on this a bit? I'm curious about how you've experienced the up/down moments. I'm guessing you're not talking about selling +20% of your portfolio in the up moments...
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I don't apply this rule to Bitcoin because I firmly believe in its value, so I try to make it the last thing I sell while I'm alive. But when it comes to traditional markets, especially sector ETFs and another promising stock, my strategy is to do DCA during bear markets. When the bull market comes, I sell everything once I identify it's over and start buying again. I'm not looking for quick, massive profits; my strategy is to achieve consistent returns over the years. Over the last 10 years, I've been able to maintain an average return of 15% per year.
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It hits the fan frequently, but i don't think it will ever happen in the widespread fashion everybody thinks. The elite have shifted gears from seething hatred and fear, trying a million different attack vectors to shut it down, to embracing their defeat and scrambling to increase their position in the aftermath of the financial apocalypse brought on by Bitcoin.
One of the things they have become really good at over the years is the systematic pushbutton mini-collapsing of geologically localized or market specific systems, and then conveniently becoming the heros, without whom recovery would have been impossible. Printing money is their favorite thing to do.
A number of very evil goldfinger-type real life villains are now positioned extremely well, such that they could easily finance that very same kind of crowd manipulation with Bitcoin. This is really scary, to me.
The sht hitting the fan doesn't go nearly as far as the sht being sprinkled onto the fan very gradually,.
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Bitcoin is a natural selection. Only the brave will use it. I really hope we will see a big crash like the 2013 one, to go down to 1k or even lower, to wash away all the "traders", speculators, shitcoiners, idiots etc...
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Bitcoin is natural, isn't it? Just like shoes and weapons! I love this but it doesn't matter, i guess. As long as it's strong, fast, or smart in the mix of things that increase your likelihood of survival during times when the weak and stupid are dropping like flies...
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It could happen.
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two weeks ?
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I don't know
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36 sats \ 0 replies \ @anon 13 Feb
deleted by author
Very timely @siggy47
One of the best tidbits about markets that has stuck with me is this.
In the short term markets are irrational and highly emotional. In the long term though... they are highly rational.
You couple this with understanding that value is subjective and you can begin to understand bitcoin's market price. Or, if that frame triggers you... its purchasing power.
I am but one node in the network of the market. My valuation of bitcoin is very different from my neighbor who has no clue about it. So when people say that bitcoin is just a speculative asset they aren't 100% wrong. But all assets are to some extent. Especially ones that few understand or that are new.
Those that really understand any asset in ways that most do not can reap a huge reward for their efforts. The market price of bitcoin in dollars is just that. The price the market will pay on that day. Its not its true value, only its market value. In the short term market prices can be stupid. Don't fall for the trap of short term thinking and following the crowd.
Did bitcoin's value prop change because of Covid? Nah, people just freaked out. Bitcoin is immune to this but the price isn't. This is why for now at least market price can be a massive distraction.
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I remember the COVID crash and it got down to I think $3500 for 100M sats.
I remember asking myself should I buy here and being nervous that I could possibly lose everything but I pulled the trigger and bought.
Hindsight is always 20/20 but when crashes are happening you must have strong confidence and conviction on what you are buying.
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I'm jealous. You're exactly right. It's easy to assume what you'll do, but in the moment it's not so easy.
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36 sats \ 0 replies \ @Mumbo 13 Feb
I used to respect him, but now see the other side.
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So glad that I managed to switch my mindset from BTC = speculative asset to sats = stack and replace. No matter how BTC plummets, I won’t panic because it aligns with my values and lifestyle
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It is good that the rats abandon bitcoin and the market price manipulation stops allowing it to be used as a real currency.
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