What a week
The return of the Bitcoin drawdown
This week reminded everyone of the ferocity of Bitcoin’s volatility. Sometimes a quiet summer can hide the underlying fire inside of Bitcoin, and lull you into thinking that price always goes up. Last week reminds us that the market does price risk accurately — those ATHs last year were not free.
To me, the long term value of Bitcoin remains unchanged. It still is a superior way to store and transfer value long term, built on science and freedom. Nothing of Bitcoin’s technology, adoption, or thesis is different now from last October.
Hodling, like all long term investing, takes patience, emotional control, mental detachment, and a slight change in perspective. Drawdowns are the only way to get Bitcoin on the cheap. Personally, I rotated some SPY into BTC this week, as I believe the upside from BTC in the next few years exceeds the downsides from the inflated valuation currently embedded in SPY. Not financial advice, just a disclosure on what I’m doing.