The Correct Psychology Of Bitcoin As Money

The Correct Psychology Of Bitcoin As Money

By Sapphire | Sapphire Crypto | 30 Nov 2021


The Perspective Needs To Be Correct

I do not see Bitcoin as cash but rather money. Many would probably consider them to be the exact same thing but that is not necessarily true. The idea of cash is that of having money on hand in order to purchase daily essentials or pay for items and services that you need in your day-to-day life. This is usually attained via a monthly wage or salary.

This is generally how cash is viewed but I believe that money is something else. Have you ever heard the term, “that guy has money”? This does not mean that he is walking around with a big pile of cash ready to buy whatever he wants. It means that he has assets that are valued rather significantly in dollar terms. This “money” then generates cash for him in multiple ways.

Incorrect Approach Nullifies Bitcoin

You cannot approach the idea and psychology of Bitcoin with an employee mentality. In essence, Bitcoin has come with a challenge for society. A challenge to view money correctly and not merely as an employee living month to month. People that are not able to accept this challenge but wish to hold bitcoin with an employee mindset will most likely not see the benefits of this particular asset. The correct approach is that of Accumulation and time. Forget about the big gains, unless you are familiar with the market and altcoin trading.

The correct approach will create money for the dedicated and disciplined. Subsequently, it will also ultimately generate cash for the holder in the long run. Warren Buffet couldn’t have been more wrong in his statement that declared that Bitcoin does not generate income. Without even investing your BTC via a lending or DeFi platform, you can still receive yield if you exercise the correct approach.

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Let’s say that you have a holding in BTC that is rather significant but not massive. Say for instance that your salary equivalent for one year is 7% of your holdings. Selling 28% of your holdings as near as possible to a cycle top will now accomplish two outcomes. Firstly, your holdings will now only be 72% of your original holdings in BTC equivalent. Secondly, you now have a guaranteed income for four years.

Once the four years have passed, the dollar value will be significantly higher than when you were holding 100% of your holdings. In the case of the 2017 top, it was 20 times the value of the 2013 top. That removed value has now been replaced in dollar terms and multiplied many times over.

Opposite To Pension Schemes

This is literally the opposite of what transpires in the fiat-based legacy pension plans. Pensioners are afraid to use their allocation because it then diminishes in dollar value, as well as relative to inflation. BTC actually increases as you take from it and then further goes on to completely outpace inflation.

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This is absolute genius and yet people, for the most part, are unable to grasp this economic construct. They still build and plan based on a system that has been proven to be a failure with every year that passes. Although BTC has not been around nearly as long as the legacy pension plan it has already been proven a success. A 12-year history of a successful cash generator while simultaneously increasing in monetary value, compared to the failure seen on any timeframe of the legacy pension plan!

World’s Apart

Are you able to see the vast chasm that separates the intelligence that these two contrary systems are built upon? Even if you played out the scenario of the naysayers that one day it may fail, would you not currently plan around something that is still working and relevant, rather than something that has already failed many years ago?

Disclaimer

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

This article was first published on Sapphire Crypto.

 

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Sapphire
Sapphire

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice. Sapphirecrypto.org


Sapphire Crypto
Sapphire Crypto

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice.

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