Why is bitcoin down today?

00:02 Why is Bitcoin down today? Let’s talk
00:04 about it. Uh, first off, I don’t really
00:06 know because it doesn’t really matter
00:08 because nothing’s wrong with Bitcoin.
00:10 So, every time the price changes, people
00:12 start freaking out. They want to know
00:14 why is it down, why is it up, why is it
00:16 down? Well, if you ever want to know,
00:17 the best way to find out is to Google
00:19 the word Bitcoin. And in the advanced
00:22 search options, it lets you set it where
00:24 you can say to show only the results
00:26 from the last 24 hours or the last seven
00:29 days. So, if the price changed in the
00:31 last 24 hours and you want to know why,
00:34 uh, the easiest way to find out is to
00:36 Google the word Bitcoin. And if the
00:38 price changed in the last 24 hours, set
00:40 the search the advanced search option to
00:42 only show results in the last 24 hours.
00:45 If the price changed in the last week,
00:47 but not the last 24 hours, like you want
00:49 to know why did it change, you know, two
00:51 or three days ago, then set it to the
00:53 last week rather than the last 24 hours.
00:57 You just read the news headlines.
00:58 usually some combination of CoinDesk uh
01:02 and
01:03 um what is it uh
01:07 Cointelegraph usually the main the main
01:09 news organizations that are going to
01:11 tell you why it changed or Cointelegraph
01:14 or CoinDesk although I think they
01:15 switched to subscription so I would not
01:17 bother with that it’s not worth it or
01:19 routers however you pronounce that
01:22 routers routers
01:24 sometimes you can get the associated
01:26 press anyway um So there’s a bunch of
01:29 different things that you can read and
01:30 you just read the headlines of why it
01:32 said things changed. So this morning
01:34 when Bitcoin was at 115 something
01:36 thousand I googled the word Bitcoin.
01:39 There was a few news stories about tens
01:40 of thousands of Bitcoin being deposited
01:42 to Galaxy which is a trading platform.
01:46 Uh people hypothesized that it was going
01:49 to be sold. Um there’s other news
01:51 stories about how Michael Sailor is
01:52 raising $2.8 billion dollars to buy
01:54 Bitcoin. So, you know, that should
01:57 offset, you know, whoever’s selling. Uh,
01:59 that’s a lot of buying. Um, but who
02:01 knows? Who knows? The reason I say it
02:04 doesn’t matter is because once you own
02:07 Bitcoin long enough, your average
02:09 acquisition cost is far enough in the
02:12 rearview mirror that it just doesn’t
02:15 matter. So, for example, my average
02:16 acquisition cost for Bitcoin is in the
02:19 ballpark of I think uh $35,000
02:22 is the sort of the best I can estimate
02:24 is $35,000. So, at an average price of
02:27 $35,000 with Bitcoin at 115, I’m living
02:31 life at a radical discount. However much
02:33 down 115,500
02:36 is compared to 35. What is that? That’s
02:39 like 70. I don’t know. Let’s call it 70%
02:43 off. It’s more, you know, should be more
02:44 than that, but whatever it is,
02:47 70% off. So, I’m living life ballpark
02:50 70% off. Now, was I living life 71 72
02:54 73% off a few couple days ago? Yeah.
02:58 At at some point, if you’re living life
03:00 70% off, 71 72 73, you’re living life a
03:04 lot off. It just doesn’t matter that
03:06 much if you’re a few percentage points
03:08 higher or lower. We were chilling for
03:11 quite a few days at 118,000. So, you
03:14 know, that’s great. And for a short
03:15 period of time, we were above 124% and I
03:18 was living life even more at a discount.
03:20 Now, in the school coin I’ve ever
03:23 acquired, you know, divided by or one
03:26 number divided by the other of all the
03:28 money I’ve ever spent acquiring Bitcoin,
03:30 uh the other way I look at it is uh I’ve
03:33 talked about before that, uh back in the
03:36 fall of 2022, I bought 18 months of
03:39 living expenses in Bitcoin, put them uh
03:42 paired it to a Coinbase debit card, and
03:45 I’ve been living for free on Bitcoin
03:47 ever since because the price of Bitcoin
03:49 is going up faster than I’ve been
03:50 spending. it. So, I have been living for
03:52 free, which is another way of looking at
03:54 it. Uh, I’ve been living for free for
03:56 the last two and a half years. All of
03:58 the end of 2022 plus all of 23 plus all
04:01 of 24. Uh, and then the first half of
04:04 25. So, more than two and a half years,
04:06 I’ve been living for free. Um, now, what
04:09 happens when the price dips? Uh, last
04:12 time I checked, I went from 18 months of
04:14 living expenses when I started the
04:16 strategy to three and a half years of
04:18 living expenses. So when the when the
04:20 price goes up to like $118,000,
04:23 I end up at like 3.7 years of living
04:25 expenses. When the price dips to
04:28 $115,000,
04:29 I dip to like 3.4 years of living
04:32 expenses. But again, I started with 18
04:34 months of living expenses. So I’ve been
04:36 living for free for two and a half years
04:38 and I still have three and a half years
04:40 to go. So as the price of Bitcoin
04:42 fluctuates, yeah, the amount of runway I
04:45 have before that money theoretically
04:48 runs out. Now, I don’t actually think
04:49 that money’s ever going to run because I
04:51 think the price of Bitcoin for my entire
04:53 life will continue to go up faster than
04:56 I spend it with that Coinbase debit
04:58 card. And if that is the case, the
05:01 runway will get longer and longer and
05:03 longer, you know, all the way through my
05:05 natural life. Um, which is what’s
05:08 happened so far. Uh, but in the
05:10 meantime, yeah, that goes up and down.
05:12 Sometimes I have a runway of, you know,
05:14 I can live for free at the current uh
05:16 expense rate for 3 and 1/2 years.
05:18 Sometimes it’s 3.7. Then the price of
05:20 Bitcoin changes. It changes to 3.4. Now,
05:23 if you’re thinking, “Yeah, that’s nice
05:25 for you, Joel. But what about for me who
05:27 just bought Bitcoin at 118,000 or
05:30 116,000 or 120,000 or even, you know,
05:33 111,000? You know, these little dips are
05:37 painful.” Well, my answer to that is
05:39 they’re painful only because you’re
05:41 relatively new to Bitcoin. And over
05:43 time, they will not be painful because
05:45 you will be in the same position I’m in
05:47 where you’re so far above your average
05:50 purchase price that it just doesn’t
05:51 matter anymore. Also, I’ll tell you
05:54 because people are always obsessing
05:55 about why, you know, why there’s a dip
05:58 or something like that. One second.
06:03 And of course, dips always seem to
06:05 happen right after people buy Bitcoin.
06:06 like, you know, the day after someone
06:08 buys Bitcoin, they always feel like it
06:10 dips. Well, when when when something
06:14 going up and to the right like this or
06:17 like this, depending on I don’t know if
06:19 uh Facebook mirrors the video or not,
06:21 but whatever. Up and the right or up and
06:23 to the right, whatever one’s up and to
06:24 the right based on your perspective of
06:26 my camera. Um, when you’re when
06:29 something’s going up and it’s very
06:30 choppy on the way up, that means almost
06:33 nobody’s it optimal perfect point when
06:37 it dips,
06:39 someone is somewhere, but almost never
06:42 it’s the average person, which means no
06:44 matter when you buy Bitcoin, it will
06:46 almost always at some point be lower
06:48 than your purchase price. And the only
06:50 way to avoid that is, I mean, there’s no
06:53 way to avoid it because you don’t know
06:55 what low is. It’s like if somebody, you
06:57 know, came to me right now and said
06:58 15,500, should I buy it now? Is this the
07:01 bottom of the dip? I would say there’s a
07:03 good chance it is, but it might not be.
07:06 Nobody knows. Literally, nobody in the
07:07 world knows. Since nobody knows, you can
07:10 either miss out on somewhere between 10x
07:13 and 100x your money by not buying now,
07:17 or you can just buy it now and not worry
07:19 about it. Let me tell you why I like to
07:20 buy it now and not worry about it.
07:22 because everything everyone is
07:24 experiencing right now with the price of
07:26 Bitcoin at 115 and then 118 and then it
07:29 went up to 123 and now it’s back at 115.
07:33 Everything everyone’s experiencing right
07:34 now I personally experienced myself when
07:37 I first got into Bitcoin when the prices
07:40 all had a zero removed. Okay, so here’s
07:43 what I mean by that. If you take a zero
07:45 off the current price of Bitcoin, these
07:47 were the prices I was initially buying a
07:50 lot of the Bitcoin I owned back in 2017
07:52 and 2018. So people were always worried
07:56 about now again if you knock the zeros
07:57 off 111 turns into 11,100
08:01 115 turns into 11
08:05 uh etc. You just knock a zero off.
08:07 Everyone was worried about, “Oh, but I
08:10 just bought it at 11,800 and now it
08:13 dipped to 11,500
08:15 and then it, you know, might go down to
08:17 11,100 and oh no, and I bought at the
08:20 wrong time and blah blah blah.” Okay. Do
08:23 you think anyone right now cares what
08:26 price between 11,000 and 12,000 they
08:29 bought? And remember, the percentage
08:31 change between 11 and 12,000 is the
08:34 exact percentage change between 110,000
08:37 and 120,000. You just knock a zero off.
08:39 And everybody was obsessing and
08:41 everybody was, you know, worried about
08:43 the exact price. I promise you, every
08:45 single person, if you went to him right
08:47 now and said, “Hey, do you just wish you
08:50 had bought as much Bitcoin as you could
08:51 at any price below $13,000?”
08:56 Everyone would say, “I wish I had more
08:58 bought more Bitcoin below $13,000.” It
09:01 didn’t matter if it was 9,000 10,11. It
09:04 didn’t matter if it was 11,100, 11,500.
09:07 11,800,
09:09 the equivalent of where it was yesterday
09:11 and the day before. 118,000 would turn
09:14 into 11,800. Didn’t matter if it’s where
09:17 it is today, which is the equivalent of
09:18 11,500.
09:20 or it didn’t matter if it dipped to
09:21 11,100, which is the equivalent of if it
09:24 dips to $111,000.
09:26 Everybody would buy as much Bitcoin as
09:28 they can below $13,000 no matter what.
09:32 The day will come when the same will be
09:34 true of $130,000
09:36 when everybody will be laughing about
09:38 how worried they were about whether they
09:40 were buying Bitcoin at 115 or 118 or 111
09:45 or 121. Nobody will care. Everybody will
09:49 just wish that they had bought as much
09:51 Bitcoin as they possibly could below
09:53 130,000 because when the price is
09:56 500,000 or a million dollars per coin
09:58 five or 10 years from now, it will not
10:00 make a lick of difference whether you
10:02 paid 111 or 115 or 118 or 121. It’s just
10:07 not going to matter. Um, I know you feel
10:10 like it does and because I felt like it
10:13 did when there was a zero removed and I
10:15 did not have somebody here to tell me
10:17 that, hey, it felt the same way when a
10:19 zero was was removed from and everybody
10:22 was worried about whether they were
10:23 buying Bitcoin at 1,00 or 1,100 or, you
10:28 know, whatever 1,080 1,00 you know, you
10:33 know, 10, right? I mean, it’s all the
10:36 same stuff. Um, and but nobody was here
10:39 to tell me that it just didn’t matter.
10:41 And if they had been here, I would have
10:42 bought more Bitcoin. So, I’m telling you
10:45 in the long term, it doesn’t matter. Um,
10:48 what matters is acquiring as much
10:49 Bitcoin as you possibly can, holding on
10:51 for to it for as long as conceivably
10:53 possible. And at some point, if you’re
10:55 in the same position I’m in, where you
10:57 own enough Bitcoin that in my case, it
10:59 represents 100% of my liquid assets. So,
11:02 I live off of my Bitcoin. Why do I live
11:05 off of my Bitcoin? because I don’t have
11:07 US dollars to live on. Uh all the US
11:10 dollars I get when I my paycheck hits
11:12 every two weeks are immediately
11:14 converted to Bitcoin. Uh and then I live
11:17 off my Coinbased debit card. And then if
11:19 I have major expenses, uh like my wife’s
11:22 grad school or something like that, I’ll
11:24 liquidate enough Bitcoin to cover
11:26 whatever th those expenses are at the
11:28 last possible minute. Uh allowing
11:30 Bitcoin to appreciate as much as it can
11:33 before it gets to that last possible
11:35 minute. Okay, so anyway, that’s the
11:38 highlights. Same advice as always. Buy
11:40 as much Bitcoin as you can, hold on to
11:42 it for as long as conceivably possible,
11:44 and is the formula that works. Um, hope
11:47 all that helps. I’m here for anything
11:48 you need. Send me questions. I’m always
11:51 here. I love answering questions. I’m
11:53 here to serve. Thanks, everyone.