How I choose when to buy Bitcoin
We tend to view price as a value measured against time.
Many crypto traders will try to call “top” and “bottom” on Bitcoin’s price, the assertion that the current price is the highest or lowest of all time, respectively.
Anticipating all-time highs and lows may work in a causally deterministic universe where all possible variables are known; however, as chaos theory would suggest, the highest highs and the lowest lows are always yet to be seen (which, in my opinion, is what makes life interesting).
Rather than playing psychic, I play the devil’s advocate. I imagine the different price points as parallel universes that exist simultaneously alongside one another, much like the Many-Worlds Interpretation of quantum mechanics.
I group these universes into two distinct realities: one where the price doubles and one where the price halves, and I find a way to accommodate both with my asset allocation scheme.
Every time the price changes, I make sure to own enough such that I won’t have FOMO (Fear Of Missing Out) when the price doubles but not so much that I’ll feel pain when the price halves. Chances are, you already have an idea of where this magical sweet spot is for you, and the less you give in to the opinions of others, the easier it is to follow your inner guidance.
Eventually, all but one of these universes get collapsed out of existence by the desires of our collective, and we arrive at our new shared reality. One thing that has been true throughout human history is that if enough people want something, it will happen.
An easy way to acquire the emotional tolerance needed to ignore short-term price fluctuations is to only buy things you love, not what you think other people will love. When you own things you love, it’s easier to hold onto them during an economic downturn. We may want to think about asset allocation not in terms of returns but as an expression of our highest values. After all, what’s the point of investing if not to maximize our experience of life?
