The path to wealth accumulation with bitcoin is open to anyone, regardless of the currency’s fiat performance.
This is not financial advice! Please conduct your research -before purchasing bitcoin.
Since the historic, bloody event of March 12th, 2020, when bitcoin’s price fell 50% in a single day, its price has been on an upward trend. Bitcoin is on a historic bull run, rising from $3,800 to $64,000 in less than a year. Numerous individuals are profiting from bitcoin, and you’re wondering how you can join in on the action.
However, what does profit mean in the context of bitcoin? Whereas the majority believe that profit means earning more dollars in the United States, I think that we can flip this argument. Profitable bitcoin trading occurs when your total satoshi count (the amount of BTC you own) increases. At the end, when fiat currency expires, the only thing that matters is bitcoin. When calculating profits, it is critical to use the appropriate unit of account. Bitcoin is that superior unit of account, not the US dollar, which is downward.
What do you do now that you’ve quantified your wealth in BTC? Are you a bitcoin trader? Are you a trader of additional cryptocurrencies? Do you attempt to time the market by purchasing low and selling high? Nope. The simplest way to profit from bitcoin is to buy an HODL. That is all. Nothing difficult. It takes no time out of your day and requires no thought.
The wonderful thing about bitcoin is that it is not an investment; it is a form of savings. When you invest, you take money earned from your day job and place it in assets such as stocks and real estate in the hope of profiting from them in the future. You must take your money and invest it in assets, and your investments may perform poorly. Saving is the act of taking your earned cash and simply holding it—not investing it in other assets in the hope of making a profit, but simply letting it sit and do nothing.
Bitcoin is the best way to increase your purchasing power due to the hard cap of 21 million BTC and growing user adoption. All you have to do is sit on your bitcoin; there is no reason to risk it. Given that bitcoin was the best-performing asset of the previous decade and is on track to be the best-performing asset of the current decade, it would be foolish to invest one’s bitcoin in other assets.
Bitcoin is not a massive bubble destined for oblivion; that is a claim made by mainstream skeptics to discredit Bitcoin. Once you understand how the Bitcoin protocol works, you’ll realize that using bitcoin as a savings vehicle carries little to no risk. Bitcoin’s price fluctuations result from market participants reacting and have nothing to do with how the currency is governed. Bitcoin cycles through large booms and tiny busts on its way to infinity. Anyone who purchases bitcoin or uses dollar-cost averaging to convert it to their unit of account profits. Accumulate enough satoshis to the point where you set a new all-time high each time you add more, regardless of bitcoin’s current dollar price.
Please keep in mind that this only works with bitcoin (BTC)! The preceding statement does not apply to any other cryptocurrency.