FOMO

Back in 2017, Bitcoin surged to an all-time high of $20,000, only to plummet to around $4,000 shortly after. This dramatic rise and fall taught a valuable lesson: Bitcoin, like any other long-term asset, requires patience and a strategic mindset.

Think of Bitcoin as you would a home or your 401(k). When you buy a house, you’re not planning to flip it immediately, especially if you’re locked into a 30-year mortgage. Similarly, you don’t check your 401(k) every day—most people let it grow quietly until they’re closer to retirement. Bitcoin deserves the same approach.

In 2017, as Bitcoin skyrocketed, “FOMO” (fear of missing out) took hold. Many jumped in at $20,000, hoping for even greater gains, only to watch the market crash. But this volatility isn’t unique to Bitcoin—it’s a natural part of any long-term investment. Bull runs and bear markets are inevitable in stocks, real estate, gold, and Bitcoin alike.

Fast-forward to today, in 2024, and it feels a lot like 2017. Optimism is high, but so is the potential for another correction. The key to navigating this cycle? Caution and a solid strategy, like dollar-cost averaging. By investing small, consistent amounts over time, you avoid trying to time the market—a notoriously difficult task in any asset class.

Bitcoin, like all long-term investments, is a journey. Stay the course, embrace the cycles, and focus on the bigger picture.

PS: In the meantime, I highly recommend reading The Bitcoin Standard: The Decentralized Alternative to Central Banking. It’s an excellent resource for understanding Bitcoin’s potential as a decentralized alternative to traditional financial systems.