Knowledge and consistently are a wonderful recipe for success. The lightbulb went off last night while reading Atomic Habits. We often know what to do, but we fail in the consistency department. I’ve always known how to be financially responsible — thank you Mom. Consistency was the turning point for me.
I don’t recall witnessing anybody deny that Bitcoin is the King crypto. If someone does, they’re not seeing the big picture. Although this knowledge is common in the industry, the market does not reflect the knowledge. Bitcoin makes up about 42 percent of the entire crypto market cap. Not even a majority at this time. Lack of consistency by market participants.
I have a theory, which has definitely been true for my thought process. Why spend $5,000 for a fraction of one bitcoin, when we could spend $500 for hundreds of altcoins? Lower cost, and more coins! Plus, blockchain technology is the future. No brainer, right? Not even close!
We’re often shallow creatures. We’re distracted by shiny objects, and we don’t dig deep enough into our own minds to understand our behavior. Furthermore, we don’t even try to climb the mountain. Instead, we want the closest bus tour to drive us around. The mountain wants to be climbed.
How we think is strongly correlated with how we behave as investors. Too many people are buying altcoins because they’re “cheaper” than bitcoin. Once we think we’re “getting a better deal,” we convince ourselves that other blockchains are better than bitcoin in some way. Additionally, we might assume that an altcoin will someday reach the market cap of bitcoin, and even flip the king. Talk about setting ourselves up for failure.
Financial markets are psychological warfare — bears vs. bulls. My mindset is bullish on bitcoin most of the time, but watching Solana quadruple in market value, while bitcoin fell about five percent in the same time period was unsettling. Welcome to the base of the mountain. I almost fell into the mind trap of buying altcoins last week. I needed to think outside the box to beat the game.
Salvatore Norge @dollarbroke"DeFi" folks seem desperate to avoid Bitcoin DeFi. I feel the energy shifting from Ethereum to Solana. How long before the 18 month old chain runs into a wall?
The crypto market is often a game of musical chairs. The music will eventually stop, and many people will be left without a chair. I don’t want to be standing and holding a bag of trash. To secure my seat and the bag, I’ve been thinking more deeply about the concept of satoshis and stacking sats. Welcome back to Bitcoin maximalism — exactly where I belong.
For those who don’t understand the relationship between bitcoin and satoshis:
One bitcoin (BTC) equals 100 million satoshis (sats), similar to one dollar equaling 100 pennies. In other words, bitcoin can be broken down into 100 million satoshis.
One BTC is written 1.00000000, and one sat is written 0.00000001.
Always eight places to the right of the decimal.
Most people cannot afford one bitcoin any longer. Not a problem, because everybody owning one BTC is mathematically impossible. If the maximum supply of 21 million bitcoin were divided equally among all 8 billion humans, each person would have 0.00262500 BTC or 262,500 sats. Keep these numbers in mind for a moment.
Shift our thinking to shift our behavior.
Rather than thinking about a fraction of a bitcoin, we can (should) think about hundreds of thousands of sats. Instead of 0.00262500 BTC, we would have 262,500 sats. Why would we choose to think this way? Because 262,500 is obviously a larger number than 0.00262500. People like larger numbers, especially when money is involved.
Sats are basically coins too, right? Fun fact — the max supply of sats is 2.1 quadrillion or 2,100,000,000,000,000.
The narrative “bitcoin is too expensive” likely went mainstream because fractions and small decimals are unattractive. We want whole numbers! Switching from BTC to sats is a game-changer, and an effective solution.
Utilizing the shifted thinking — $20 currently buys us about 42,000 sats, instead of 0.00042000 BTC. Additionally, I can imagine goods and services priced in sats in the future, rather than BTC. The electric bill would cost 47,404 sats, instead of 0.00047404 BTC.
Knowledge and consistently have been helping me avoid shitcoin casinos, along with any other goals I might set for myself. We can be easily distracted or convinced to veer from our path. Money is only one path, and other paths are far more important. Thank you Jesus. Even with unlimited paths, the concept of knowledge and consistently works for everything. Don’t separate the two.
Until next time,