Chapter 1: The Bitcoin Decision

You purchased Bitcoin at $18,000 and now face the dilemma of whether to sell at $24,000. Should you take your $5,160 profit or hold out for more?

The current situation is intense. Selling your Bitcoin now guarantees a profit of $5,160, yet there's an internal conflict. Could this be the beginning of a bull market? The fear of missing out (FOMO) is palpable, making you feel like Neil Armstrong ready for a lunar voyage.

Just last month, Bitcoin was valued at $18,000, and it's now at $24,000. A sale would secure at least $5,000 in profit. However, many believe that Bitcoin's upward trend might not last; if it reverses, the narrative could shift to a bull trap.

If the price falls again, that $5,000 gain will vanish. Generally, profits exceeding 20% are considered favorable, especially within a single month. To illustrate, if you annualize a monthly return of 28.1%, you arrive at an astonishing annualized rate of 1,852%.

Nerd Note: To convert a monthly return to an annualized figure, use the formula: Annual return = ( (1 + Monthly return) ^ 12 ) — 1.

You must also consider practicality: Which is better? $5,000 in your bank account or the possibility of $79,640 based on speculative gains if Bitcoin reaches $100,000?

Indeed, the potential profit of $79,640 arises from buying Bitcoin at $18,000 and selling it at $100,000.

A Caution Against Speculation

While I don't advocate for speculation, I do appreciate numbers and the allure of wealth. The tables below are straightforward and informative, making them enjoyable to analyze.

I find these tables valuable because they simplify complex ideas. Some acquaintances may delve into time series analysis or machine learning, but I prefer a more grounded approach, enriched by experience and logic.

Let’s examine the first table, which delineates Bitcoin's entry and selling prices in dollars.

This table displays entry prices for Bitcoin in columns, while the selling prices are arranged in rows. The intersections indicate potential earnings. For instance, if you buy Bitcoin at $18,000 and sell at $24,000, your profit of $5,160 is found where the respective column and row intersect.

You may not always buy or sell whole Bitcoins; many opt for amounts like $100, $500, or $1,000. For these instances, the next table, which shows entry and selling prices in percentage terms, will be more relevant.

This percentage table operates on the same logic as the previous one. If you purchase at $18,000 and sell at $24,000, the profit percentage is 28.10%.

You might question why a profit of $5,160 translates to a profit percentage of 28.10% instead of 28.66%. Your reasoning is sound, but the profit percentage accounts for the purchase commission. The sales commission is factored in when calculating the profit.

The earnings indicated in these tables assume a 2% commission on both buying and selling. Don't worry; most exchanges charge significantly less than this. I chose a conservative figure to ensure that the profits reflect a safety margin.

Nerd Note: The tables present earnings before tax considerations. To adjust for taxes, multiply your profit by (1 - tax percentage). For instance, if your profit is $5,160 and your country imposes a 20% tax, you calculate $5,160 x 0.8, yielding $4,128 after taxes. This can also be applied to the 28.10% figure to arrive at 22.48% post-tax.

Insights from Past Experiences

Interestingly, those who have experienced financial hardship often possess the keenest instincts for capitalizing on Bitcoin. They are adept speculators, while wealthier individuals often adopt a long-term “holding” strategy, trusting that their investments will grow over time.

This brings to mind the well-known marshmallow test: children were given the choice between a small immediate reward or a larger one later. Research suggests that the ability to delay gratification correlates with future success.

However, recent studies indicate that this ability is influenced more by the reliability of one's environment rather than inherent self-control. Children raised in poverty often choose immediate rewards, knowing that future opportunities may not materialize. Conversely, those from affluent backgrounds learn to wait, confident that more will come.

This marshmallow analogy is relevant to Bitcoin investment strategies: Wealthier individuals tend to become Bitcoin holders, while those with limited means are often more inclined to speculate.

Bitcoin Profit Strategies

So, if you've bought Bitcoin at $18,000 and are contemplating selling at $24,000, you must decide between being a Bitcoin Boy or a Bitcoin Profiter. The former hopes to hold onto Bitcoin until it soars to $100,000 or more, possibly waiting for a major life event or societal change.

In contrast, Bitcoin Profiters are inclined to take that $5,000 profit now, ready to seize another opportunity if Bitcoin declines again tomorrow.

I write extensively about maximizing financial opportunities. If you found value in this discussion, please show your support to help spread the word!

Note: The content provided in this article is subject to change and should not be taken as legal or financial advice. Always consult with a financial advisor or tax professional for personalized guidance.

Chapter 2: Video Insights

The first video, "BITCOIN IS MONEY NOW!!!! [last call for a moon ride]", delves into the pressing question of Bitcoin's current value and potential future. It explores the implications of selling versus holding Bitcoin.

The second video, "Bitcoin Is TRAPPING You! (Watch ASAP)", highlights the risks associated with holding Bitcoin and the urgency of making informed decisions in a volatile market.