El Salvador may be the first country to officially invest in Bitcoin (BTC), but it did buy the top. In fact, it has continued to buy bitcoin as the price continued to fall, even though it is not exactly a prosperous country. Yet El Salvador’s President Nayib Bukele surprisingly good advice.
“Be patient!” says president about Bitcoin
He writes on Twitter that he sees many people who have become anxious about the falling price of bitcoin. He therefore advises to stop looking at the price and enjoy your life. “If you have invested in BTC, your investment is safe and its value will grow immensely after the bear market. Patience is important,’ he explains.
There are some snags to his comment, but it’s actually pretty good advice. Patience is indeed important, and in any bear market it turns out that people often lack patience. Emotions are often a big problem too. It is never good to be guided by fear.
†but be able to keep your patience
One caveat is that he thinks quite easily about it. For example, your investment is only safe if you are completely sure that the place where you keep your BTC is really 100% safe. Iinvestors who bring their money Celsius and Three Arrows Capital also thought their capital was safe, now it turns out that it isn’t.
Ein fact, it is almost never wise to completely stop looking at what is happening around you. Fear is a very useful emotion. It helps you to seek safety when the world is not safe. Unfortunately, this is especially useful when situations are not physically safe. It also makes you quick to make irrational decisions.
Funny is that Bitcoin skeptic Peter Schiff too his say had about this. He emphasizes that Bukele bought the top, when it subsequently fell 75% in value. In fact, no one knows whether the price will recover, because no one can see into the future. ‘Doctor Doom’ is right about that.
That advice is as bad as your advice to buy the top. How can you say an investment in #Bitcoin is “safe” when it has already lost 75% of its market value? You have no idea how low the price will fall during this bear market, or that the price will ever recover to current levels.
— Peter Schiff (@PeterSchiff) June 19, 2022