In this time of shakedown, I want to share my 10 rules for Bitcoin. The principle is treating Bitcoin like land in cyberspace. Just like you don’t flip property or gold every now and then, the same principle should apply to a harder and more liquid asset like Bitcoin.
1. Bitcoin is strategic and not speculative
Treat it as long-term reserve capital, not a trading position. It sits in the “hard asset” bucket of my balance sheet, not in the “investment ideas” bucket.
2. Adopt a multi-decade time horizon
Like real estate property or even gold, value is realised in cycles. Checking thr price 10+ time a day doesn’t cut it. The minimum mindset is 10+ years, ideally multi generational.
3. Secure it just like I secure physical property.
I self custody. Have a succession plan in place and well documented recovery.
4. Avoid leverage
I have learned this the hard way with property. And we’ve seen over and over how leveral on bitcoin can wipe out your wealth in hours.
5. Measure in Bitcoin, not Fiat
No mattet the price, my bitcoin number will always go up. Everything else is measured against bitcoin.
6. Automate accumulation
I increase the automated buys in weak markwts and decrease during extreme greed.
7. Hold through volatility
I avoid checking the faily fluctuations and price (as hard as it can be some times). Imagine checking daily or even monthly the price of an apartment. We shouldn’t be treating Bitcoin any different.
8. Integrate it into a hard asset strategy
This makes all the difference. Unlike land, art, jewelry, gold, property, productive equity, Bitcoin is borderless, perfectly liquid, with zero storage cost. Bitcoin sits on top in terms of “investment” priority. I treat it as such whenever I have spare capital.
9. Don’t chase yield but use it as protection against a system risk
Most will dosagree but in my opinion yield chase is a corrupt DeFi gimmick. Bitcoin YoY 30% expected growth is my safe heaven.
10. Build infrastructure around it like I would for property
Property requires insurance, legal structuring, tax strategy, estate planning, etc. etc.
For Bitcoin I have defined the ownership structure, understood tax treatment, built reporting system and treat it as a personal treasury rather than a mere investment product.
