Bitcoin stumbled and other cryptos fell

Over the last few months Bitcoin stumbled from 50k to 40k, and bear market FUD began. The market reaction was swift, people fled from Bitcoin and Altcoins to stable coins and this selling pressure caused the inevitable further drop in altcoin prices. Interestingly even promising projects saw their total volume locked fall, as investors fled, seeming throwing the baby out with the bath water, as they dumped both the good and the bad.

If everyone is doing it, it must be the right thing to do...right?

Wrong ...everyone wasn't doing it.

The Bitcoin Whales, the Ether Whales, the BNB Whales were buying.

Fools ...you think?

Wrong again...do you think they became whales by being wrong?

Two rules one old, one new....

First Rule....

My dad told me that during World War 2, the soldiers were given large amounts of cigarettes and chocolate each week. This was to keep their morale up during the fighting. So you probably think that everyone was smoking cigarettes and eating chocolate, right?

Wrong

My dad observed that some people were selling both cigarettes and chocolate, which had come to them for free, at inflated prices. So my dad who didn't smoke and liked money more than chocolate, did the same thing. You see everyone wasn't doing it. Some were choosing to act differently, because they wanted a different outcome
My dad called this don't do what everyone is doing, do what the successful people were doing.

Second Rule...

My dad decided to buy war bonds or savings bonds every paydayas they later came to be called. He noticed that the $25 dollar bonds were 21 dollars, sometimes 19, 18 or even 16 dollars. However he was dismayed at the wide price variation and he was concerned about paying to much for them. But a guy he met who was an accountant before he joined the Army told him to keep doing it that way it because his average price per bond would be lower that way.

My dad saw people buying and selling bonds every day, trying to amass a large amount at a low price. He saw that some were successful, but many were not. Some even ended up with a bunch of bonds at the highest price. He decided to do what the accountant said, because even though the accountant was doing something different from what everyone else seemed to be doing, what he was doing was successful. My dads bond investing was very successful.

This rule that my dad followed is also called Dollar Cost Averaging. It's firmly entrenched in investment lore as a reliable way to invest in assets over the longterm. But not everyone follows it. The majority of investors do something else, so they must be correct, right?

Micheal Saylor just announced another purchase of 50 million dollars worth of Bitcoin.

He periodically buys Bitcoin, and recently bought it just above 40k after it started this latest move up to 48k. If you check the Report Form K for his corporation Microstrategy you will find he has been regularly buying Bitcoin for over a year, nearly 2. His average price is very good despite Bitcoins volatility and his investment is so profitable, that he is able to borrow against it periodically and buy...more...Bitcoin. His company has amassed a staggering amount of Bitcoin, and a staggering amount of profit.

Micheal Saylor's large Corporation is doing two things other large Corporations are not doing, first it is buying Bitcoin, second it is Dollar Cost Averaging.

Last Words..

If you do what everyone else is doing, you will get what everyone else has gotten, and in this world that means over indebted, under saved, and living paycheck to paycheck...

...waiting for the next disaster to break your budget, and leave you homeless and broke.

I suggest that you...

...do what others are not doing, even if it means leaving the safety of the crowd.

In the words of the Mandolorian: This is the way.

Source
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The End...for now.

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:) All other Photos are all from www.pixabay.com

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