Fundamentals of Bitcoin

It’s a long term game plan when it comes to Bitcoin. Price fluctuations occur every day. No doubt, price can go down 15% and another 15% and another 15% every day. Ouch. But in the long term, the price is still going up.

Has the fundamentals changed? Not really. In the short term, it’s only noise. Price fluctuates aggressively.

From the recent events, governments and central banks all around the world have noticed about blockchain and cryptocurrencies such as bitcoin.

With the price falls, think about the opportunities. You can now buy and accumulate more. If the price increases and never falls, opportunities to accumulate never come.

With fiat currencies decreasing in value every day, it will only fuel the adoption of cryptocurrencies. Think long term, price decrease is good for accumulation.

Do not put all your cash in 1 single day into bitcoin. Instead, slowly buy and buy. From $20 per day or $50 per week or $100 per month. Whatever the amount, in the long term it will pay off.

Always budget available cash for use, for example food and transportation. Sometimes you may feel that you should just eat instant noodle and put more money into investment. Sometimes you may feel lucky that you did not put more money into investment when the price drops. Whatever it is, always stick to your plan. Plan long term.

Think not of 1 month or quarters. Think about decades. Everyday refreshing coinmarketcap site is not going to be beneficial. It’s only going to make you want to sell when the price drops, causing you to become a weak hand trader.

Price goes up, great. Price goes down, better. You can accumulate more for the longer term horizon.

Stay humble in the present. Think of the future.

The Best Time To Invest Was Yesterday, The Second Best Time Is Today

Everyone wish that they have invested in Amazon stock when it was 10 years ago. But how many did really invest back then? How many could predict the future? How many could say that they will know for certain a certain stock will rise exponentially? The answer is, almost nobody.

Currently, many people see investing into bitcoin like investing in Amazon stock 10 years ago. There is a lot of potential for exponential rise, but there is also significant risks. Who can say that bitcoin will definitely rise to a million dollars or more per coin? Who can say it will crash and go to near zero?

With the price of cryptocurrencies falling to such ridiculously low prices, is investing in them wise? With the current total market capitalization of only less than 130 billion US dollars, the whole cryptocurrency space is really tiny. And with bitcoin currently at about 70 billion US dollars, it is even smaller than the net wealth of a single individual such as Bill Gates, of about nearly 100 billion US dollars. Imagine one single person controlling the whole market capitalization of bitcoin, how tiny it is.

And, bitcoin is currently global. It is also known as the internet currency, just like every other countries that have their own currencies, the currency for the internet is bitcoin. With so many exchanges everywhere in the world available to convert fiat currencies to digital internet money, it does seem a little silly for the current state of market capitalization of cryptocurrencies.

But who is to decide how much a bitcoin is worth? You, me? Nobody. It’s the market, collectively deciding how much a bitcoin is worth at this current moment. And markets are known to be erratic, and not logic. Bear markets can make you become insolvent longer than you can think. Maybe it is the bottom, maybe the bottom is still 90% lower still, nobody really knows. And it is constantly being manipulated by high net worth individuals aka whales. There is really no way to know.

Sometimes it is easy to say, only invest money that you can afford to lose. But reality is, all money is precious and many people cannot afford to lose even a small amount of money. A better way of investing is to only invest according to how much you really understand. If you have learned and fully understand how much cryptocurrency can become in the future, then invest accordingly. If you think the future is bleak, invest only a little or do not invest.

The only best method is to think long term. Do not focus on short term market fluctuations, it may increase 20% per day, it may also drop 30% the next day. It can be a roller coaster ride, and make you feel like you might have bipolar disorder. One day euphoria, and another day depression. One of the strategies that most people can use is dollar cost average. Set a strategy and stick with it. Plan for example that you will invest $20 per week for 1 year. It will cost you about $1040 per year. Maybe $20 per week is like 2-5% of your monthly wage. If you set with a strategy and stick to it, you will not be affected much by the volatility. You will be able to purchase more bitcoins when the price drops, and purchase less when the price rises.

A word of caution, is to never forget about your plan. Be careful not to FOMO or fear of missing out. Most of the time, people will think that a certain stock has bottomed, but nobody really knows. It may even drop another 50% before it rebounds to 1000%. Who knows for sure?

Long term wise, bitcoin is a worthy investment. Over the last 10 years, the price has been steadily rising. If in doubt, zoom out and think long term. In the next 10 years, how will people use bitcoin. The use cases might not even be thought of or developed yet. Maybe not even 1 year or 5 years from now. We may think that bitcoins will be able to support micro-transactions, we may think that bitcoin may be used to buy drugs illegally from the dark web, or we may think that foreign workers use bitcoin to send money home to their families working abroad. But in the next 10 years, the main use case of bitcoin might even change.

So when is the best time to buy? Today. Invest with all your faith and believe, and even if it fails one day, at least you can say, what a ride, what an experience to be in this space.

If you notice, every digital payments app or website that you use, they are not fully integrated with one another. For example, you have some balance in your paypal account but you cannot send those funds to your mobile cash app and vice versa. Imagine the possibilities with bitcoin as the main bridge to all apps. Bitcoin can be used by anyone to pay for online game currency. Someone can pay to unlock a certain stage in a game with cryptocurrency. Someone can transfer money from one app to another, apps developed by different companies, instantaneously.

The world we are living now is about innovation and integration. Our smartphone is a good example. Back in the days, there were cameras, telephones, televisions, modems, radios, computers. Now we have, smartphones, all fully integrated into one, powerful device. Think of bitcoin the same way, think of how bitcoin can be integrated into everything, and suddenly, there is unlimited possibilities.

Maybe a little ideas to spark future innovations.

Bitcoin and electric cars. Automatic settlement for charging your vehicle, all in micro payments. A satoshi for every kilowatt per hour charge.

Bitcoin and online games. Paying for online items with bitcoin, and receiving bitcoin into your bank account.

Bitcoin and cash apps. Sending money from one app to another no matter what mobile wallet app you are using.

Bitcoin and Facebook or social networking apps. Sending money via instant messaging.

Bitcoin and Google. Automatically donating to a certain website that you support, although in very small amounts. For example, for every time you visit a site, you donate 1 satoshi.

Bitcoin and artificial intelligence. Computers automatically paying your bills, planning financially and even robo trading.

Now imagine, bitcoin and electric cars, online games, cash apps, Facebook, social networking apps and Google combined, like how smartphones combine cameras, radios, TVs. The possibilities are endless.

And, combining all these together in this era is not all that difficult. It’s an evolution that will lead to unimaginable things in the future.

We might not even think of such thing might have purpose at this moment, but it might be a significant life changing thing in the future. Maybe healthcare? Maybe it will change the way we work in the future? We may never know how things evolve. And it will evolve faster than we will think it will. And the growth will be exponentially unimaginable.

  • Bitcoin
  • Ethereum
  • Bitcoin cash
  • Litecoin
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Bitcoin As A Vote

Just like in a democratic country, where someone votes for their political party of choice, Bitcoin is a vote against the fractional reserve money printing system.

Bitcoin can never be stopped. Why? The reason is because there will always be believers that will use bitcoin. When it gets more and more expensive to mine bitcoin, some people will give up. However, remember that there will always be someone that will mine bitcoin even if bitcoin goes to near-zero. That’s because some people can mine bitcoin with solar energy, using free electricity.

Why it will not go away? Bitcoin has functions. It’s most powerful use is as an internet currency. Just imagine that countries have their own currencies, and the internet has bitcoin as its currency. Look back 10 years or earlier, or even now, transferring money from one person to another via the internet is still a hassle. You cannot transfer money easily without a central authority. You cannot transfer money without paying huge fees. You cannot transfer money if you do not have an account with a particular bank or entity.

With bitcoin, you can transfer money easily via QR code by scanning your phone on the screen. You can send money to people through YouTube, Facebook, or even the television instantly. The person who wants to receive money just have to display a QR code, something like a bank account number. And anybody can transfer into the bank account without borders. You do not need to have a bank account, you do not need to use PayPal or Visa or Mastercard to transfer money.

And best of all, people cannot take away your money from you. Once it’s sent to an address, only the person who has the private key, which is you, can access and transfer the money. Nobody can censor and reverse your transaction. Your bank account will always be yours. Nobody can close, suspend of freeze your account pending “fraud” investigations which will take years or more with only tiny hope of restoring your account.

Think of bitcoin not as a speculative stock. Think of bitcoin like a vote that you believe in sound money. Vote that you will never bow down to fractional reserve fraud system. Vote that someday, everyone will realize the true financial system we are currently using. Vote that one day, it will be much more fair financially for everyone.

In China and in many countries, governments are actively monitoring and spying on your activities and banking records. In China, people use mobile payments such as WeChat pay and AliPay, which heavily rely on such giant companies to transact with one another. And the downside? All these data are available to the government.

And if everyone keeps money in their mobile wallet, and someday, whenever you are against a certain political party of person, you will be banned. Your account will be frozen. You will not be able to transact with anyone. You will not be able to do anything at all. Think of the consequences. People will be obedient and be suppressed by their governments.

Vote bitcoin if you believe in freedom of money. Vote for bitcoin if you believe in sound money. Vote in bitcoin if you think the fractional reserve system has to change. Vote in bitcoin if you believe in the future of money. It may mean that you lose a lot of money in the short term, but in the long term, as more and more people rise and realize the financial system is a fraud, people will use bitcoin. It may take few generations to change the system. It may mean you will need to wait 10 to 20 years or more, for the younger tech savvy generation, maybe not even born yet to change the world for the better.

What is the best way to vote for bitcoin? Dollar cost average a tiny amount of your salary in something you truly believe. Irregardless of the price, just vote like 5-10% of your monthly salary into bitcoin. Overtime, someday, you will reap the rewards. Only put money you do not need in the short term, money you truly believe. Your money is your vote. And remember to stick to your dollar cost average strategy, and do not FOMO. It takes a lot of patience, a lot of despair and disappointment. Only if you truly believe. Even if it ultimately fails, at least you have tried, and hoped for a better world.

It’s your vote.

  • Bitcoin
  • Ethereum
  • Bitcoin cash
  • Litecoin
Scan to Donate Bitcoin to 3KfAJXSZ12B9SyDAwg21HrGtprusjc6Z7m

Donate Bitcoin to this address

Scan the QR code or copy the address below into your wallet to send some Bitcoin

Scan to Donate Ethereum to 0x6c4e28b393b63e06a0f294d6a912fa1370bf15f7

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Scan the QR code or copy the address below into your wallet to send some Ethereum

Scan to Donate Bitcoin cash to 18iYpiLGdxJSaHHqXNT2D4s6EVkHNAzwwC

Donate Bitcoin cash to this address

Scan the QR code or copy the address below into your wallet to send some Bitcoin cash

Scan to Donate Litecoin to LNHQkUZ3ArEWj9iAL1BirWmXXcha4mWKU1

Donate Litecoin to this address

Scan the QR code or copy the address below into your wallet to send some Litecoin

Dollar Cost Average – Market Bull or Bear

Nobody can time the market. It’s true. No one really knows when a bull market has topped or when a bear market has bottomed. And it takes a lot of mental energy and time to figure out the near top or bottom levels. Is it really worth your mental energy if you plan on holding onto a stock that you believe has the greatest potential in the long term?

Well, another method that you can consider is to dollar cost average. It is basically an easy way for anybody to save and invest without much thought.

You basically set a plan, for example, to put in $100 per week irregardless of the price. Whenever a stock is increasing in price, you will buy a little less stock. And whenever a stock is falling, you will acquire more stock.

Many people get greedy and think, why can’t I just put a lump sum amount at the lowest price, to get the highest potential? Well, it’s not easy to time the market. You never know that the money that you have invested is really at the absolute bottom, or it will fall further down in price even more!

A simple strategy is to dollar cost average, and buy for the long term. If you have studied and analyzed the fundamentals, all you need to do is to have faith. Believe in yourself, and believe that in time, you will be able to acquire more stock and the price level will increase. It’s not going to be fast, it’s not a one month, or two months duration. It may take years and even decades.

It takes a lot of disciple to put in your hard earn money every week to accumulate a stock that you have full faith in it that it will increase in price over the long haul.

There are 52 weeks in a year. Depending on your budget, you can plan to allocate $100 or more per week. Sometimes you can also invest every month instead of weeks. For $100 per week, you will have invested about $5200 per year.

It takes a lot of disciple and faith to dollar cost average. It’s a better strategy than placing a lump sum, as the risk is lower. It’s never too small an amount, if you start to invest. A small sum of money can grow into a large amount of money with time.

Trading Emotions

Let’s face it. Trading involves a lot of emotions. When it involves money, everything is emotional. That is no wonder why charts and patterns repeat always. And history repeat itself. People always think that, this time it’s different. How different is it actually? Not really.

How market cycles always work and will always work, is due to human emotions. Believe it or not, even if you are saying you do not trade with emotions, you are actually in denial. Everybody cares when their entire life savings is on the line. Everyone cares even when people say they are only putting money that they can afford to lose. It always revolves around emotions.

Whenever there is a bull run – the herd mentality

Whenever the stock price is rising, people get excited and fear of missing out (FOMO), therefore they will buy when the price is increasing. And people feel that is the right decision and will dump their savings and feel dumb if they do not take out loans to buy a rising stock. However, little did they know that smart money is starting to dump their stocks. Smart money with huge amounts of money can influence the media. They will share “good news” in the media so that everyone will want a piece of the action. But when the enthusiasm is diminished, the stock price plunge. That starts the end of the bull market.

In a bull market, people will feel that they are smart, able to double their money in a short amount of time. Some people even start to think of retirement, all the money that they have accumulated, when they can quit their job.

Denial and Hope

After taking huge loans, people will keep holding on to the stock, in hopes that it’s only temporary and it will rebound soon after this. Whenever a stock dips a little, some even take out more and more loan, thinking that it’s a good deal as the stock price will surely go up again.

However, the stock continues its downward pressure as the smart money is still selling.

Soon, emotions take over. Then there is denial, pessimism, panic and then capitulation. The general public will feel how stupid they were to invest everything and take on margin to buy a stock. They regret and feel dumb. Everybody sells during this period.

That’s the time when it’s a sale for smart money. Smart investors will grab these cheap stocks on discount from weak hands.

Ending of the bear market

Right after the weak hands have sold their stocks, price will rebound from buying by smart investors.

Soon, there will be hope, relief then optimism.

Here goes another bubble, and the cycle repeats.

Trading – It’s not easy, Learn more about yourself and your emotions

Let’s face it. Everything is not easy in life. Trading affects everyone. It require a high mental attitude and discipline. It involves a lot of patience. A market can take a very long time, even a decade or more to bull. And it can take only a few seconds to tank into bear territories. It is extremely stressful, and it will affect everyone around you.

You may or may not notice, but it will definitely affect your emotions. Whenever a stock rises in price, you will feel confident, happier, and nothing can stop you. And whenever a stock falls, you feel that you are stupid, life is not worth living, and the most depressing moment in your life will occur.

It’s not easy to control ones emotions when trading the stocks market. And it takes lots of time and patience to learn about a market. There is no easy way in life. There is no overnight millionaire or success that comes easily. It’s always the behind-the-scenes of people enduring despair, patience and hope that many do not see. People only notice the successes, but do not notice the hardship and hard work.

Trading & Life

Trading is stressful. People feed all sorts of ideas into their own minds when a stock bulls or bears. Always remember to never lose yourself. A stock price is not a valuation of you. A stock price increasing in price does not mean that you are smart and a stock that is falling does not mean that you are a failure.

Always remember that there is a second chance and third and so on. There will be plenty of opportunities in life, if only you are patient and learn from your mistakes. It’s not going to be easy, but will it be worth while? Only you can decide by yourself.

Full of opportunities

In life, there is plenty of opportunities, if only you can stop and open yourself to view them. It’s no use fooling yourself that the world is falling down and everyone is against you. Cycles occur, and like it or not, history do repeat itself. Everyone thinks that, this time it’s different, but is it really so?

Always remember to be humble in life

In life, there are ups and downs. When you have acquired a fortune, always remember to be humble. Do not overspend and waste on unnecessary splurges. Always remember to keep some money for a rainy day, you might never know when the day will come. And fortunes can overturn in a matter of days.

It may take a decade to accumulate and only a single day to lose it all if you are not careful. Whenever you feel that you have accumulated quite a fortune, always consider to diversity. Diversifying is one of the ways to preserve your fortune and reduce your risks.

Do not despair

Always believe in yourself. Believe and have faith. Have the patience to endure a loss. It’s not really the end of the world. We can choose in our lives. Life is like a game, in which everyone plays. Everyone is born and live to work to accumulate wealth and then dies. It’s not the destination but it’s the journey that matters. In the end, what do you really live for? Money, health, famous or happiness? Whatever we do, always remember that we always have a second chance and we can always start all over again. Be humble. Life is worth living.

Investment Quotes

Nobody can time the market or buy from the very bottom. Dollar-cost-average!

Investing takes time and patience, if everybody can do it, everybody is rich.

Investing involves emotions, there will be bull and bear markets.

Buy low and sell high, but it is not easy. If it is so easy, everyone will be rich.

Controlling your emotions is key to investing. Do not follow the herd.

Buy when everyone is selling, sell when everyone is buying. Be greedy when others are fearful, and vice versa.

An investment is a long term journey, it takes not 1 year or 2 years but sometimes decades.

Don’t plan to beat the market, nobody can time the market. Stick to your plan and be disciplined.

It’s easy to buy items that are on sale, but it is not easy to buy a “discounted” stock/ investment.

It’s hard to buy items that are increasing in price at a stall, but why is it easy to buy stocks rapidly increasing in price? Why FOMO (Fear of missing out)?

Never lose yourself. Never be too over the clouds when winning and never despair when losing. Life is after all a game everybody plays, and in the end everybody dies.

Even if you have lost it all, you can always restart. Be humble and start again. It will not be easy. Remember that. 

Planning takes time, and lots of patience.

Money makes money. Never trade your time for money.

Live not to impress others, but just be happy yourself simply. Do not overspend on things you do not need to impress the people you do not like.

Hold on.