Imagine you are standing in a burning house. Smoke everywhere, sirens wailing. People are running, screaming to the emergency exit, trampling each other, panic in their eyes.
And in the middle of this chaos, someone is sitting on the sofa, sipping his coffee, and says quite calmly, "That is a nice fire, though. I think I will buy the house. " Sounds like a psychopath, right?
Welcome to the world of Bitcoin during a crash. When the prices are red, when Twitter is burning and your uncle sends you gleeful WhatsApp messages with the text. So, how is your internet money going?
Then there are two types of people. Some sell in panic and swear never to touch Bitcoin again. They are the fodder, the exit liquidity, and then there are the others.
The psychopaths on the sofa, the ones who buy when there is blood in the streets. Are you crazy if you buy while everyone is selling? Or are you the only one in the room who still sees clearly?
Today, we deconstruct the psychology of the diamond hands. We look at why your brain wants to keep you poor and how you flip the switch to be greedy exactly when others are fearful. Stay tuned because what I'm revealing to you now is not in any business administration textbook.
This is the manual for financial survival. Let us be honest, your brain is a fascinating tool, but when it comes to investing, it is your biggest enemy. Seriously, it hates you.
Evolutionarily speaking, this makes sense. Imagine you are in the savannah 50,000 years ago. Your whole tribe suddenly runs screaming to the left.
What do you do? Do you stand still and analyze the fundamentals of the situation first? Hm.
Is that really a lion or just a shadow? No, you run along because the guy who stood still to think got eaten. His genes are out.
We are the descendants of the panicr runners. This herd instinct secured our survival. But in the financial markets there, the herd instinct is the shest way to ruin.
The fiat system loves this behavior. It trains you to seek safety in the crowd. When everyone buys real estate, you buy one, too.
When everyone hypes tech stocks, you hype along. And when everyone screams Bitcoin is crashing, your reptile brain screams, [music] "Sell. Save yourself.
" The problem is, when it is in the news, it is already too late. When your hairdresser gives you investment tips, the top has been reached. And when the media proclaimed the end of the world, the bottom is usually already there.
Most people bought Bitcoin at over $100,000 because it felt safe. Everyone is doing it. It is rising euphoria.
And they are selling now at $70,000 because it feels dangerous. They buy high and sell low. That is the exact opposite of making money.
But why do we do that? Because the social pain of being wrong and standing alone is worse for our brain than the financial loss. But here comes the twist.
There is a group of people who have cracked this code. How do they do it? Do they have no fear?
Oh yes. But they know something that 99% of people ignore. And that is exactly what we are going to look at now.
Imagine you go into your favorite supermarket. Your favorite steak that usually costs €40 is on sale today for €20. What do you do?
Run screaming out of the store and call the police. Oh god, the steak is crashing. The steak market is collapsing.
No, you fill your shopping cart until the wheels squeak. You call your friends. Guys, stake sale.
Why the hell do we behave exactly the opposite way with Bitcoin? When Bitcoin falls from $126,000 to $70,000, that is the biggest sale of your life. But instead of filling in the shopping cart, people stare at the price and think the product is broken.
Here is the secret that the fear buyers have understood. Price does not equal value. Price is what you pay.
Value is what you get. In the fiat system, we are taught that the price is the truth. When the price falls, something must be wrong.
But Bitcoin does not work according to fiat logic. The psychology of those who buy in the bare market is based on a fundamental realization. Has the network [music] changed?
Let us check. Does Bitcoin still produce a block every 10 minutes? Yes.
Is the money supply still limited to 21 million? Yes. Is the network still censorship resistant and decentralized?
Yes. Okay, so the product is exactly the same as yesterday. It has just become cheaper because a few overinded gamblers panicked.
The people who buy now do not see red numbers. They see an opportunity to grab more shares of the scarcest asset in the universe for less paper money. They understand that the market is irrational, but the mathematics of Bitcoin are absolute.
They are not buying the chart. They are buying the protocol. But wait a minute, that sounds super simple in theory.
Buy low, sell high. Everyone knows the saying. Why do so few manage to do it anyway?
Why do your hands tremble when [music] you want to press the buy button while everything is red? Because there is a second psychological barrier that sits much deeper than [music] logic. And that separates the tourists from the locals.
Most people have the time horizon of a house fly. They think in days, weeks, perhaps months. If I buy today, I want to be rich tomorrow.
That is not investing. That is a casino. Whoever buys during the panic has a different time horizon.
He does not think about the price next month. He thinks about the price in 10 years. Or better, he does not think in price anymore.
That is the stoic mode. People who buy Bitcoin during a crash have lowered their time preference. That is the technical term for patience.
In the fiat system, we are raised to be junkies. Consumption [music] now, credit now, reward now. Bitcoin forces you to detox.
When you understand what hard money is, the volatility does not matter to you. Even more, you start to love the volatility. Listen to me closely.
Volatility is the price you pay for [music] performance. If you want safety, buy government bonds and lose a guaranteed 5% of purchasing power per year. That is safe.
Safe loss. But if you want the chance for asymmetric gains, that is the potential rise from 0 to 1 million, then you must be ready to endure the roller coaster ride without puking. The psychology of the Zip Buyers is fascinating.
They have decoupled the pain of red numbers from their emotional reaction. How did they do that? They have stopped measuring their wealth in euros or dollars.
That is the ultimate hack. When you look at your portfolio and think, "Oh no, I have lost €10,000," then you [music] are afraid. But if you think, "I still have 1.
5 Bitcoin, and yesterday I bought an additional 0. 1 Bitcoin. I have more now than before," then you are relaxed.
One Bitcoin equals 1 Bitcoin. The exchange rate to the euro fluctuates because the euro fluctuates because the ECB prints money. because politics is going crazy.
But Bitcoin, Bitcoin is the rock in the storm. The people who buy when everyone is afraid use the euro only as a yard stick to see how cheaply they can get more sats. They collect sats, not euros.
But careful. There is a fine line between courage and stupidity. Simply buying blindly into everything that falls is the fastest way to become poor.
Just ask the people who bought Terra Luna or some NFT pictures of board apes in the dip. What is the difference between a falling knife and a golden opportunity? Here the wheat separates from the chaff.
The people who buy Bitcoin during a crash act out of conviction. Conviction does not come from hope. Conviction comes from knowledge.
Have you read the white paper? Do you understand the having? Do you understand why proof of work converts physical energy into digital security?
Do you know what distinguishes Bitcoin from altcoins? If you do not understand these things, then you will sell at the first sign of a storm. You will have paper hands because your foundation is made of paper.
But the fear buyers, they are nerds. They are the ones who have done hundreds of hours of research. You cannot scare them.
When the media writes Bitcoin is bad for the environment, they laugh because they know the data on mining and renewable energies. When politicians say Bitcoin will be banned, they laugh because they know that you cannot shut [music] down a decentralized network. Knowledge is the antidote to fear.
So, the psychology is actually quite simple. These people have done their homework. While the masses read headlines, Bitcoiners read books.
While the masses yell at the TV, Bitcoiners check the onchain data. They see that the whales, the large investors, are accumulating in the background while the shrimps, the retail investors, are selling in panic, and they simply decide to swim on the side of the whales. It is a game of patience.
[music] Warren Buffett once said, "The stock market is a device for transferring money from the impatient to the patient. " [music] With Bitcoin, this is even more extreme. It is a transfer from the anxious to the convinced, from the fiat thinkers to the sovereigns.
And now comes the hardest part. The part that no one talks about, the feeling of loneliness. It is not easy to be the crazy one.
If you buy while the world is burning, you will not get any validation. [music] Not from your friends, not from your family, not from the experts on TV. They will laugh at you.
They will warn you. Do not throw your money away. Did we not tell you?
You have to be comfortable with everyone else thinking you are wrong. That requires a massive ego or massive humility before the truth. You have to accept that the majority is usually wrong.
Look around. The majority is in debt. The majority is stressed.
The majority has no savings. Why the hell should you do what the majority does if you do not want the results of the majority? If you want extraordinary results, you have to do extraordinary things.
And buying Bitcoin in a bare market while everyone is screaming help is damn extraordinary. It feels like you are swimming against the current. It is exhausting.
But the current leads directly into the waterfall of inflation. Upstream lies the source. These people have stopped looking for validation on the outside.
They find validation in mathematics. 2 + 2 is four. Even if the whole world screams that it is five.
Okay. How do you become someone like that? How do you train yourself to be this cold-blooded?
Do you have to be born a psychopath? No. It is a muscle and you [music] can train it.
Here is your training plan for the next crisis. First, zoom out. Stop staring at the 1-hour chart.
Look at the logarithmic chart of the last 10 years. Every crash looks like just a small dent in the rear view mirror. The crash of 2017, a joke from today's perspective.
The crash of today will look the same in 5 years. Second, automate. Take the emotion completely out.
Set up a savings plan every month, no matter the price. DCA dollar cost averaging. When the price is high, you buy fewer sats.
When the price is low, you automatically buy more SATs. You do not even have to think about it. You let the [music] mathematics work for you.
Third, education instead of news. Delete the news apps when it turns red. Read the Bitcoin standard instead.
Listen to podcasts. Understand the money. The more you understand, the more peacefully you will sleep.
Fourth, celebrate the dip. That sounds perverse, but try it. When you get the notification minus 10%, say out loud, "Awesome.
" Discount. Train your brain to see falling prices as a gift, not as a punishment. Imagine Bitcoin is a rubber ball that you push underwater.
The deeper you push it, the more energy builds up. When you let go, it not only shoots to the surface, it jumps out of the water. The people who buy it at the bottom are the ones holding the ball just before it is released.
Look, no one knows where the bottom is. Maybe it falls much deeper. Unlikely.
But hey, nothing is guaranteed. But one thing is certain. If you only buy when it feels safe, you will always be holding other people's bags.
Wealth is made in the bare market and only paid out in the bull market. The decision you make today while everyone is afraid, defines where you will be in 5 years. Do you want to be the guy who says in 5 years, "Oh, if only I had bought during that crash back then, or do you want to be the guy who says I was there?
" I trembled, but I pressed it. Become incorruptible. Become sovereign.
But attention, buying Bitcoin is only half the battle. In the next video, I will show you how to become your own bank and secure your Bitcoin so that no one but you can access it.
