Before buying Bitcoin, answer five questions: what is it, will the price go up or down, why do you think so, what's your timeframe, and when will you sell. The speaker projects Bitcoin could become a unit of account by 2050 and argues a clear thesis prevents reactive decisions.
Are you tired of watching everyone get rich in Bitcoin over the last few years and you don't know how to get started? Well, if I was going to get started in Bitcoin today, there's 5 things I'd want to figure out first. As a matter of fact, before I buy any asset, I want to know these 5 things. So number 1, like, what is it? So Bitcoin is a new technology. It's a protocol. It's absorbing monetary energy. It's a scarce asset. Number 2, what am I expecting from it? Do I expect it to go up or down? If I want to short it, I need to go down. Go up, I go long. Number 3, why? Why do I think it will do that? What's the underlying mechanism? So like with Bitcoin, it's scarce assets. It's absorbing all the monetary energy and liquidity. And then over what timeframe? Like, when do I expect that to happen? Well, I expect it to become a unit of account by 2050. And then finally, what will I do once it gets there? Do I sell it? Do I hold it, et cetera? So never buy an asset until you know these couple things. I find way too many people buying assets and then it drops in price and they don't know what to do. Should I sell it? Well, go back and check your thesis. And if you have those 5 things before you buy anything, you're going to do much better while you're holding it and even better as you own it.
