<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/2ab3457c-6b4a-4076-bddb-d61be385781b/Favicon-simplify.png" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/2ab3457c-6b4a-4076-bddb-d61be385781b/Favicon-simplify.png" width="40px" /> Half the battle of building and maintaining wealth is developing a mindset that this is something YOU are capable and worthy of. The good news is that you are! 💪💪🏽💪🏿
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<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/d7877081-79f5-456a-9d5c-1eafc95d8886/Favicon-simplify.png" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/d7877081-79f5-456a-9d5c-1eafc95d8886/Favicon-simplify.png" width="40px" /> Developing this mindset and building wealth will take time and a long-term mindset, so its important to get started early (aka NOW).
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First and foremost, think big. The biggest mistake my younger self made was thinking too small and buying into the myth that wealth comes from lowering expenses and adding to my savings account, vs. a focus on building assets. Reducing your spending isn't paving your path to wealth or financial independence, investing in appreciating assets over long periods of time is.
Whenever technology enables new capabilities, the transition is always a rollercoaster: it's a mix of hype, greed, speculation, and panic - often multiple times. This is reflected in the price which can go up and down quickly without any warning.
So how should you prepare?
View Crypto as a High-Risk, High-Upside Part of Your Portfolio
<aside> 😝 You should be mentally prepared to lose whatever money you invest in crypto (if wrong) and drive your portfolio (if right)
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This here is a long-term game 💎👐
We're all familiar with Amazon - but did you know that Amazon was $10 in 1997, went up to $110 in 1999 during the height of the dot-com boom, and crashed back down to $10 in 2001.
In the moment, that would have been whirlwind of emotions - but look how small of a blip that is over a 25 yr time horizon.
Think long-term.
Strong Conviction
In nascent assets like these, you need to have insanely strong conviction over long periods of time to stomach the good, bad and ugly:
<aside> 📈 The price of bitcoin, which started at 1 cent per coin in 2009, was over $63,000 on April 15th 2021. If you had bought $1 worth of bitcoin in 2009, it would have been worth ~$6.3 million dollars then 🤯!
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<aside> 📉 The price of bitcoin on July 1st 2021 is roughly ~$33,000. Your bitcoin investment is now worth ~$3.3 million dollars: a $3 million dollar drop in 10 weeks 🤯!
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