Price dips are MAGICAL for shaking new investment money loose. My story at $22K, $16K, $57K, and NOW

Price dips are magical for shaking new
investment dollars loose, which is why
I’ve ended up investing a lot more in
Bitcoin than I otherwise would. So, I’m
thankful for the price dips. Here’s
quick a quick story of four of the most
memorable times in that. So, the first
is as the price was dropping in 2022,
um I was looking for every conceivable
way of buying more Bitcoin, I had not
initially considered putting my
charitable giving foundation funds in
Bitcoin. So when I sold Bombgar
Corporation back in 2014, I set aside
money to do charitable giving for the
rest of my life. [snorts] And I had not
considered touching that money for the
purposes of Bitcoin cuz I figured it
would be a royal pain to figure out how
to invest it in Bitcoin. I didn’t want
to mess with it. Plus, it was charitable
giving funds and I just figured I
wouldn’t mess with it. But the price got
so irrational as it dipped. Ultimately,
it dipped down into the low 20,000s. And
I thought, this is crazy. at below, you
know, below 25,000 a coin, it makes zero
sense for Bitcoin to be priced down
here. And so I ultimately put more than
half of all of those charitable giving
funds in Bitcoin at a price of about
$22,000 per coin. So obviously, they’ve
more than quadrupled uh the value of
that Bitcoin from then until now. And I
only did that because Bitcoin was
dipping. If Bitcoin had not been
dipping, I would have been comfortable
with my current setup, happy with my
allocation. I had not considered uh
investing charitable giving funds in
Bitcoin up to that point and I would not
have if the price had just nice steadily
marched up. I would have just stayed
fat, dumb, and happy right where I was.
All right, next example. When the price
dipped further below $20,000,
ultimately Prosper, where I serve as
president, we put uh seven figures, so
over a million dollars of our own funds
in Bitcoin uh at an average price of
probably less than $18,000. In fact, we
bought hundreds of thousands of dollars
of Bitcoin uh at a price of uh $15,750,
which was in within $250 of the cheapest
it ever got in the last quite a few
years. And again, we were investing
about $200,000 a week over the course of
like five weeks, I think it was, uh with
the plan of investing a million. And one
of those uh we I think we doubled up on
it and and put two weeks worth in one
week or something like that. Anyway, it
was like $200,000 at 15,750.
Again, because the price was dipping. If
the price had not been dipping, we would
not have put our uh treasury reserve
capital in Bitcoin. But the price of
Bitcoin was so cheap, it made sense to
do that. All right. A third example. As
the price climbed higher and higher and
higher, it hit $74,000 in March of 2024,
and then the price receded and it
bounced around between $50,000.
Actually, it was between $55,000 and
$70,000. and it bounced around there so
long that I thought this is ridiculous.
At this point, worldwide adoption is so
high compared to the price that I have
got to find a source of capital that I’m
not already deploying. And I decided to
put my entire 11 years of Bombgar
Corporation 401k in Bitcoin. And I
ultimately did that in I think it was
July or August of 2024 at a price of
57,300.
So 5730.
So, I bought a substantial amount of
Bitcoin with 11 years of fully matched
401k at 57,300.
Again, I only did that because the price
was dipping. It had been as high as
74,000 and the price was down in the 50s
and I thought, “This is dumb. This is
ridiculous. If people are going to keep
being irrational about the price of
Bitcoin, I’m eventually going to find a
way of deploying more capital into it.”
And so, I did. And obviously I’m up
substantially on that $57,000 401k which
had been growing very slowly up until
that point. Okay, the last example is
the most recent. Bitcoin peaked at
$126,000. It started marching down. And
once it dropped below 110,000, I
thought, “Okay, here we go again. This
is getting dumb. This is getting stupid.
People are acting irrationally. The
worldwide adoption of Bitcoin justifies
a significantly higher price than the
price today. And if you’re going to
dangle cheap Bitcoin in front of me long
enough, I’m going to find a way to buy
it.” And the only thing I could come up
with for a way to buy it was some gold
and silver that I had bought back in
2017. I could not remember exactly how
much I bought and I couldn’t remember or
immediately figure out how much it was
up, but it was enough to be in the six
figures somewhere. And so ultimately, as
the price hit 105,000, I decided, you
know what? Here we go again. I’ve been
here before. I’m going to sell the gold
and silver. I’m going to buy Bitcoin
with that capital because the market is
once again being irrational. So, it
started a multi-week process because
once you decide you’re going to buy uh
sell gold and silver, unless you want to
take a huge discount at a pawn shop or
something like that, which obviously I
was not going to do, it takes a couple
of weeks at least, you know, 10 days to
two weeks to go from I want to sell it
to I have money in the bank as a result.
And it took about in my case about 2
weeks to go gather up all the gold and
silver, inventory it, uh call around to
figure out where I could sell it.
Ultimately, I sold it at SD Bullion. S
is in Sam, D as in David. uh SDB
Bullion, SDBullion.com. They came highly
recommended by a trusted friend of mine
who had used them before many times. And
so I sold all of my gold and silver to
SD Bullion. The wire transfer hit last
night and I bought hundreds of thousands
of dollars of Bitcoin last night at an
average price just above $95,000 per
coin. So, uh here we go again. Now, I
don’t know where I’m going to come up
with additional capital in the future.
If Bitcoin goes up to $175,000 a coin
and then dips back down to 140, I will
be feeling like I do right now, which
is, hey, Bitcoin is being irrational.
How can I buy more? I don’t know how I
can buy more right now. But, you know
what? I’m a very creative individual. I
will either find a way of making more
money or finding a way to monetize an
asset that I own uh and find a way to
get liquidity on that asset. Or maybe I
will get more comfortable with borrowing
against Bitcoin to buy more Bitcoin,
which I do not recommend unless you are
a very sophisticated investor because
it’s very easy to get liquidated, which
means you lose your Bitcoin if you’re
doing that. I am currently not
comfortable doing that myself. But there
might be some creative ways that I can
uh leverage to buy more Bitcoin. I don’t
know. Right now, I sold the gold and
silver. I’m deploying that capital into
Bitcoin as fast as I can. I still have a
little bit more to deploy into Bitcoin,
but I have hit the daily purchase limits
uh on Coinbase, River, uh Gemini, and
Strike on all four of those. And my
daily purchase limit on Kraken is too
low to be worth doing. I don’t want to
mess with it. Um mainly because I’ve
never actually bought any Bitcoin on
Kraken. And so, you start out with a
really low daily limit. Whereas those
other platforms, I used to buy Bitcoin
on um Gemini way back in the day. I
don’t anymore until last night. Uh but
then of of course I do uh buy Bitcoin on
River all the time and from time to time
on Coinbase and I’ve never really bought
much on Strike. S R I ke but Strike is a
great platform. It’s just River is
better in my opinion. So I always use
River instead, but I was maxed out on
the daily purchase limit on River. So I
bought some additional on Strike. So
anyway, uh I’ve got a little bit more.
As soon as my daily limits reset, which
should happen in the next couple hours,
I’ll buy a little bit more Bitcoin,
probably around $96,000 per coin. I
don’t care what the price is. I’m going
to buy it no matter what the price is.
But you should be thankful for price
dips. Price dips give you the
opportunity to re-evaluate whether the
amount of Bitcoin you own is the most
you’re ever going to want to own. And if
it isn’t, it gives you the opportunity
to buy more at a discount. And it also
just does a magical job of of shaking
loose additional capital. In my case,
uh, charitable giving capital and
Prosper Treasury Reserve capital and
401k capital and gold and silver
capital. Each of those price dips gave
me an opportunity to shake loose
additional capital that I had not
previously considered allocating to
Bitcoin. But the price dip reminded me
that the market is still irrational. the
price is significantly below what it
should be based on worldwide Bitcoin
adoption and it made me reconsider
whether I really owned as much Bitcoin
as I thought I should and ultimately I
concluded at all of those times and many
more before that that I did not own as
much Bitcoin as I should. Now, I didn’t
cover the smaller ones. Uh the price
dips earlier this year in April uh is
when I took my allocation from 97%
Bitcoin up to 99% Bitcoin when the price
dropped into the high 80,000s. And then
subsequently when it dropped into the
mid70,000s,
it was actually in the high 70,000s when
I bought the last 1% of Bitcoin um with
my liquid assets. So, as of April of
this year, I’ve had 100% of my liquid
assets in Bitcoin with gold and silver
being the only thing that was not in
Bitcoin because it was not liquid and it
took multiple weeks to make it liquid.
But I had uh 97% which I ultimately
upped to 99 and then 100%. And both of
those were based on price dips as well.
So, be thankful for price dips. It’s an
opportunity to buy Bitcoin at a
discount. It’s also an opportunity to
re-evaluate whether you have a source of
capital you had not thought about before
that could be deployed into Bitcoin in a
way that will make you very thankful one
day that you I do.