One of Warren Buffett’s famous quotes about the stock market may be a little confusing at first glance.
“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for ten years”
Most investors simply “Don’t get it” when it comes to this kind of mindset. They want to have their stock rocket, sell, and walk away with dollar profits.
The difference is Warren is investing, not speculating.
What does mean for the average Bitcoin investor?
Change your Mindset - Dollar Profits are Not the Goal
Are you still price obsessed when it comes to Bitcoin?
Don’t feel bad, we all are for a bit. But the Dollar price of Bitcoin is something you’re going to have to get over.
Because there is no limit to the Dollars that will be created. There is a definite limit to the number of Bitcoins that will be created.
Simply meditating on this fact will help you get to the point where you realize you must start using Bitcoins as your unit of account.
Use and abuse dollars in the meantime. Borrow them, spend them, burn them if you find it entertaining. But bottom line is keep using them as long as people accept them for real things.
But God forbid you sell your Bitcoin before it is necessary.
You Don’t ‘Make Money” With Bitcoin - It is the Money!
Looking to “make money” (trade) Bitcoin is coming at it with a Dollar/Fiat mindset.
Times have changed, the research has been done. Bitcoin has survived every attack thrown at it and continues to thrive. Can you say that about the dollar?
Warren looks at stocks the same way a Bitcoiner should look at money.
He picks the very best stocks that have the strongest traits when compared to the competition. The best cash flows, the largest margins, the biggest competitive moats.
Sound money advocates have similarly analyzed the competitors, and picked the best one.
Only one tops the rest. Only one is the money!
Living Through the Transition - Stack and Relax for a Decade
Like Warren, a solid goal would be to buy Bitcoin and assume the market will be closed for the next ten years.
You’ll still go to work, earn your dollars, live your life.
Meanwhile, your Bitcoin will continue to appreciate against the ever-depreciating dollar.
All is well.
Sit back, stack and relax, and let Bitcoin do the work.