Bitcoin Crash Learning

A story about Shaan's early experience investing in Bitcoin and learning an important lesson about conviction vs price.

"About 7 years ago, I bought Bitcoin for the first time - I think I bought $10 worth when Bitcoin was around $600-700. The next week it went up to $800 and I thought 'There we go baby, just as I wanted - buy the thing, price goes up, love it when they stick to the script.'

Then about 2 weeks later, Bitcoin crashed to $200. I walked into the office complaining about the crash, and my friend Furcon asked me: 'Do you believe less in Bitcoin than you did 2 weeks ago? Did you learn any new information besides the price changing that makes you less bullish on Bitcoin?'

I said no, I barely knew anything to begin with and nothing had changed. He said 'Cool, so if you bought now you could bring your average cost basis down to $400.'

I went home and did it. I remember going from just wanting to complain about my losses to realizing - did my conviction change or just the valuation? Bitcoin today trades around $23,000, so that difference between buying at the bottom vs just complaining was the difference between a 4x and an 8x return."