Ben and I were talking today about Bitcoin’s big reversal. He told me to post the GIF of the guy jumping off the diving board, which I’ve used in the past.
So I went to my search history, and on that day, like today, the price fell more than 20% from its intraday high. The price at the time was ~$1,000. ??♂️??♂️??♂️
This tweet aged like a fine baby diaper.
Live chart of bitcoin. pic.twitter.com/0ZMqwhMftn
— Michael Batnick (@michaelbatnick) January 5, 2017
Bitcoin is truly amazing. In the last 24 hours I went from “I can’t believe I didn’t buy this to thank god I didn’t buy this.” There aren’t many securities that can take you from feeling regret to relief and back multiple times in the same day. If you’ve paid any attention to the space, you’ve probably experienced this feeling for yourself.
Why don’t I own any crypto? I could not handle the volatility. Then why don’t I just put in a small amount? Because after years of trading and gambling, I know that a small position would do nothing for me. If anything, it might make me feel worse. Here’s how: Let’s say I did buy a little and it went to $40,000 or some ridiculous number, I know I’d regret not buying more. Inevitably, a feeling of “I knew I should have bought more” would overwhelm my senses.
So why not just take a decent sized position? Two reasons: Like I already said, I wouldn’t be able to stomach the volatility on a day-to-day basis. More importantly, I don’t know anything at all about this space, and I don’t feel like putting in the time to learn. If it dropped 50%, which is certainly possible, I wouldn’t have the conviction to HODL or add to my position.
Needless to say, this is not for me. At least not today. But I will continue to watch because I’ve never seen anything like it before and we might never see anything like it again.
Josh spoke today about Bitcoin and gold and student loans and stock picking and much more in What Are Your Thoughts? Check it out.