Fall is on the downswing up here in the mountains.
Two weeks ago the trees were a robust symphony of reds, oranges, and yellows – shades of each color weaving an intricate web upon the mountains. Today, most of those trees are bare… and winter’s gray stare draws near.
To every time there is a season, as the Book of Ecclesiastes notes. And the same is true in the world of money and finance.
We were talking about Bitcoin when we left off last week. It had just shot past $74,000… and I took a few minutes to reminisce about the ride.
Well, Bitcoin didn’t bother to take a breather. As I write, Bitcoin is now trading just shy of $82,000… and suddenly the six-figures benchmark is in play.
I’ve seen this same pattern play out three times before. First in 2014. Then in 2017… and in 2020. Here we go again…
When Bitcoin goes on a run, the moves up are so fast – and so extreme – that you feel like it will go up forever.
As the run continues, it gets to the point where people who have never been involved in finance or investing start to get interested. They start to ask questions like, “Should I get in now?”, and “How high will it go?”.
In the past I’ve always answered these questions by trying to explain the fundamentals underlying Bitcoin. These fundamentals are why it’s such a valuable asset – and will be for many years to come.
I’ve always wanted folks to understand the big picture. Because once you do, your entire perspective changes. Not just on Bitcoin… but on the entire financial landscape. If you know what’s happening, you’ll know what to do.
More often than not people will cut my explanations short. “Yeah – that’s great… but how high will it go? Should I buy now?”
That’s when I know that Bitcoin is nearing the peak of its current bull run. And on each occasion that peak is followed by a precipitous fall. At that point the speculators who cared nothing about the fundamentals sell their small position at a loss and tell everybody what a scam Bitcoin is. Those are fantastic buying opportunities.
We’re not there yet with Bitcoin’s current run… and it doesn’t matter much anyway.
When it comes to Bitcoin, it’s best simply to accumulate. That is to say, buy a little BTC every single week regardless of the price – no exceptions. Make this a habit and you’ll be amazed at what you have five years down the road.
This is the secret to building wealth.
It’s not about hitting it big on any one investment. It’s not about finding the “next Bitcoin” or the “next Nvidia”. It’s not about getting in on the next hot trend.
No, true wealth comes from accumulating high quality assets consistently over time. If you make this a habit, you’ll have no choice but to become wealthy.
The trick is, you have to know what’s a high quality asset… and what’s not. More to come tomorrow.
-Joe Withrow