Borong Bitcoin Episode 1 - Juni 2023

Summary

In this video, the speaker shares their personal Bitcoin investment strategy, emphasizing transparency and long-term commitment. They discuss their buying method, which includes consistent monthly purchases rather than timing the market, and address common misunderstandings about dollar-cost averaging (DCA) versus lump-sum investments. The speaker stresses the importance of understanding Bitcoin before investing and showcases their portfolio updates to demonstrate the effectiveness of their approach. They also highlight the growing institutional acceptance of Bitcoin, predicting its future mainstream integration, and encourage viewers to consider Bitcoin as the top investment asset.

Takeaways

• 😀 Bitcoin's price has recently touched $30,000, sparking questions about the right time to buy or invest.
• 😀 The speaker shares their principle of 'walking the talk,' meaning they practice what they preach and want to involve their audience in real-time Bitcoin investing.
• 😀 The speaker first bought Bitcoin at around $18,000 in January and has been transparent about their ongoing investment journey.
• 😀 Bitcoin's growing legitimacy is supported by major institutions such as BlackRock, Fidelity, and HSBC, which are exploring Bitcoin ETFs.
• 😀 The market cap of Bitcoin could exceed $1 trillion after its halving event, which could drive further institutional investments.
• 😀 The speaker emphasizes Bitcoin as a superior asset, outperforming traditional investment options like gold and the S&P 500.
• 😀 The speaker invites followers to observe their Bitcoin buying journey transparently, with updates on their portfolio every month.
• 😀 Dollar Cost Averaging (DCA) is discussed but clarified that it’s often misunderstood. The speaker compares it to lump-sum investing, recommending a simpler approach of investing consistently over time.
• 😀 The speaker advocates for investing in Bitcoin using the simplest method possible, without the complexities of trading or derivatives.
• 😀 The speaker mentions the importance of 'self-custody' when holding Bitcoin, encouraging viewers to learn about wallets and security rather than relying solely on exchanges.
• 😀 The speaker rejects endorsements and urges viewers to make their own informed decisions about exchanges and investments, while showcasing their own Bitcoin purchasing process through a specific exchange.

Q & A

What is the speaker's approach to Bitcoin investment?

The speaker follows a transparent, long-term approach to Bitcoin investment. They practice what they preach by regularly buying Bitcoin, starting from when the price was around $18,000, and continue to purchase it at various price points, sharing their progress with the public.

What is the difference between Dollar Cost Averaging (DCA) and lump-sum investment, according to the speaker?

Dollar Cost Averaging (DCA) involves investing a fixed amount regularly, regardless of the asset's price. The speaker contrasts this with lump-sum investment, which is a one-time, large investment, and advocates for the latter in the case of Bitcoin, claiming it's more effective in this market.

Why does the speaker advocate for a long-term approach to Bitcoin investment?

The speaker believes that Bitcoin should be treated as a long-term asset, due to its volatility. They emphasize holding Bitcoin for decades rather than seeking short-term gains. They believe in the future potential of Bitcoin as it becomes more accepted by institutions.

What role do institutional investors play in the current state of Bitcoin?

Institutional investors like BlackRock, Fidelity, and HSBC are entering the Bitcoin market, which is contributing to its growing legitimacy in traditional finance. Their involvement is seen as a major factor behind Bitcoin's price increase and is expected to continue influencing the market.

What is the significance of the speaker opening their Bitcoin portfolio to the public?

The speaker is opening their Bitcoin portfolio to the public as part of a transparent and educational approach. They aim to show their followers how they accumulate Bitcoin over time, and how their portfolio evolves, offering a real-world example of Bitcoin investing.

How does the speaker suggest Bitcoin investors should manage risk?

The speaker advises against trying to time the market and warns that short-term trading strategies, like derivatives or leverage, can lead to substantial losses. Instead, they recommend focusing on regular accumulation of Bitcoin and holding it long-term.

What is the main criticism of DCA in Bitcoin investments, according to the speaker?

The speaker criticizes the common use of Dollar Cost Averaging (DCA) in Bitcoin investments, arguing that lump-sum investment is more optimal for Bitcoin, based on data. They claim that DCA is less effective unless adapted to dynamic conditions.

What does the speaker mean by 'Not Your Keys, Not Your Coin'?

The phrase 'Not Your Keys, Not Your Coin' emphasizes the importance of self-custody in Bitcoin investments. The speaker urges investors to control their own private keys, as holding assets on exchanges exposes them to risks, including potential exchange failures.

How does the speaker view the future of Bitcoin's market cap?

The speaker is highly optimistic about Bitcoin's future. They predict that Bitcoin's market cap will exceed $1 trillion after the upcoming halving event and that Bitcoin will continue to outperform traditional assets like gold and the S&P 500.

What does the speaker suggest about the 'timing the market' approach in Bitcoin?

The speaker strongly advises against trying to time the Bitcoin market. They explain that focusing on timing is a risky strategy, and they emphasize that even a few missed days can significantly impact returns. Instead, they advocate for regular and consistent investment without worrying about short-term fluctuations.