#Volatility is movement… it is a critical sign of life.
Lack of volatility is death.
Investors who fear volatility can never succeed and generally hold portfolios of dead (or dying) assets.
They wonder why they are slowly getting poorer.
#Risk only equals volatility in academia.
In practice (that is, in the real world), true financial risk is the chance of losing your purchasing power over time and space.
The volatility of #Bitcoin is a feature and not a bug… it is a powerful sign of life.
Yes 🫡
How do you look at diversification? This kinda implies that it's a hospice care for a portfolio.
But is there a method to do it right from a Bitcoiners's perspective?
At the risk of stating the obvious, diversification reduces volatility, as well as upside gains and downside losses. Diversification is generally not a strategy for those who understand how to invest well.
The world of financial planning, filled with “experts“ who want the largest amount of AUM as possible, thinks diversification is a fantastic strategy. They preach the virtues of diversification while focusing almost solely on acquiring new clients and growing total client assets.
I’ve had draw downs in my net worth of 50% or more six times in nearly 30 years of investing.
They’ve gone from tens of thousands to millions of dollars. I expect my next one will be many, many millions.
This is the true path to wealth. If you’re not willing to walk that path you aren’t willing to be wealthy.
People love FUD, hate the rich, and flock to the doomsayers because it keeps them from facing the fact that they are cowards and will never be wealthy.
Strong heartbeat of a young and powerful bull! It is supposed to have a large amplitude and should be embraced and celebrated.
Minor Quible: Slightly rosey glasses in your analogy where lack of volatility equals death - too much volatility is also equal to death. I'm thinking in terms of homeostasis as a dynamic or volitile constancy, but there are limits that can jack your shit up if they get to volitile : )
Agreed. 🍻
Doc, what have you read that helps influence your views? I’ve been through all the BTC work + Mises, Rothbard, and Hoppe. Always looking for more ways to understand the world.
Volatility is waking up every day.
Lack of volatility is when you stop breathing.
Dr. you've been hanging out on the maternity ward too much back to the cave with you 📈📉📈📉📈📉
Bitcoin will lose its volatility some time in the future though. It already has to a large degree. Saylor send to be the only one who figured out how to beat it now.
