I am at it again this weekend selling early according to EVERYONE that owns Bitcoin on Twitter.
I sold some Bitcoin at $29,000 and $32,000 and it feels great. Of course, Bitcoin has gone straight to $34,000 this morning as I write.
Whenever I think of my selling early issues, one joke comes to mind from way back when I was a kid with an eyepatch (I had a lazy eye) watching Johnny Carson from my room late at night:
I was born by Cesarean section, but you can’t really tell. Except that when I leave my house, I always go out the window.
The joke is Steven Wright’s who is like me, one strange guy.
I have not sold any Bitcoin since 2017 on the last great run up to $19,000. I have done some buying and shared that on the blog and Stocktwits.
Along the way, I have also invested in a couple of crypto funds, one that crashed and burned and one that is currently in a massive jihad to the upside.
I have no control over my Bitcoin/crypto exposure in Etoro (which has a large crypto business) and Robinhood.
Because I can’t control the areas with my largest exposure to Bitcoin through indirect investments, I simply sold some of my Bitcoin to help me feel responsible.
I know, it’s not perfect and it may be dumb if crypto does indeed go to the moon.
You need to develop your own strategy for selling. There is no perfect selling strategy.
I will tell you though that if I truly need Bitcoin in the next 5-10 years, I think we have worse problems than me selling some of it early.
Next up.,..one of my friends who is a very smart guy chimed in on my Twitter stream that ‘if only he understood math and science’ he too might have bought some Bitcoin’.
I felt compelled to chime in that math and science had nothing to do with most of my investing let alone my crypto gains.
I followed smart people into Bitcoin and am waiting for them to indicate when the party may be nearing an end. So far, they have not.
All my friend had to do was follow them or in this case me (because he follows me).
I did a search on my blog for my first blog post on Bitcoin.
It was March 2013 and I called it ‘The Jurassic Park of Currencies‘. I still think that holds…The asset jumped the fence and has not been easily explained/caged/managed.
In May 2013, I finally owned some because I saw that Union Square Ventures invested in Coinbase…my reasoning was dead on:
‘Not too early for Fred Wilson and way too early for Warren Buffett’, Fred remains long at it remains rat poison to Warren. Check!
In August 2017, Howard Marks was calling Bitcoin a pyramid scheme at $3,000, I said:
‘If Bitcoin is a pyramid scheme, we need more pyramid schemes‘. I stayed long.
The last important post (to me) on Bitcoin came in 2017 from Fred Wilson when he explained how it became a store of value.
We can all continue to yell and scream and HODL or trade, but Bitcoin will remain a store of value until proven otherwise.
That is where we remain today. The only thing that matters is your risk tolerance and money management.