People used to stash gold for safety. It was portable, but it could be taken. Today, the conversation is about Bitcoin. My view is simple: Bitcoin can be a powerful store of value—but only for those who truly understand it. If you don’t, it will feel like a slot machine. That makes it a liability, not an asset.
Know What You Own—or Don’t Own It
I see too many buyers who don’t know what they own. They buy because of hype. They sell from fear. That cycle burns wealth. If you study Bitcoin’s purpose, history, and mechanics, your decisions become far more rational.
“If they don’t know what it is, they shouldn’t invest in it because they’ll end up selling early … they’re going to get into a lot of fear and greed.”
That is the heart of the matter. Ignorance is more costly than volatility. Volatility tests conviction. Without conviction, you panic. With conviction, you plan.
Volatility Is the Price of Admission
Bitcoin has posted huge returns since it launched. It has also crashed hard many times. I don’t see that as a bug. It is the cost of holding an asset that lives outside traditional systems and trades 24/7.
“The people I know that have crushed it studied it for a long time before they bought it and they held on to it when things were volatile.”
That patience comes from education. It also comes from position sizing. I don’t recommend buying Bitcoin with money you need to pay next month’s bills. Treat it like long-term value.
A Store of Value—With Rules
I consider Bitcoin a store of value. But I still respect its swings. That means setting rules before buying. Decide why you own it, how much, and under what conditions you will add or trim. Keep some dry powder in stable cash so you are not forced to sell at the worst time.
“It’s a store of value. And if you don’t know what it is, it’s going to create stress and fear for you.”
As a practical guide, I suggest a buffer.
- Liquidity rule: Keep more cash than you think you need.
- Allocation rule: Size it so you can sleep.
- Education rule: Study before you buy; review before you act.
This is how you let time work for you instead of against you.
What Michael Saylor Gets Right—and Where You Should Be Careful
Look at Michael Saylor. He used cheap debt against company stock and bought large amounts of Bitcoin. People doubted him when the price fell. He stayed the course. Now it’s up, and he looks smart.
“Look at what Michael Sailor’s doing. He’s borrowing against company stock … and just buying hordes of Bitcoin … he stuck with it. And now it’s on the rise.”
I respect his conviction and strategy. But that does not mean you should copy it. Leverage adds risk. If price drops far enough, lenders don’t care about your thesis. They care about collateral. Most investors are better served by a cash buffer and a measured allocation.
Cash Still Matters
Cash has a job. It covers life’s hit-by-a-bus moments. It lets you avoid forced sales. That’s why I tell people to hold extra liquidity if they own volatile assets like Bitcoin.
“You probably need $2 in Bitcoin for every dollar you need in cash value because it’s going to go up and down … cash value is going to be a lot more stable.”
Think of it as shock absorbers. Cash smooths the ride so you can keep your plan intact.
The Counterpoint—and Why It Falls Short
The common pushback is that Bitcoin is too risky. I agree that it is risky if you buy blindly, use leverage, or depend on it for monthly expenses. But risk is not just volatility—it’s behavior. Education, rules, and liquidity reduce the true risk more than any price chart ever could.
The Path Forward
Here’s my stance. Bitcoin is useful as a store of value for informed, patient investors. It rewards conviction and punishes confusion. If you want it to work for you, earn it.
- Define the purpose of your Bitcoin position.
- Study until you can explain it simply.
- Set clear rules for buying, holding, and rebalancing.
- Hold ample cash so you are never a forced seller.
Do that, and you turn chaos into strategy. Skip it, and you turn strategy into stress. The choice is yours. Start with education. Build your rules. Then act with patience and courage.
