From The Irrelevant Investor, Michael Batnick: A major defect in our software is this thing called hindsight bias. We fool ourselves into thinking we knew a given outcome was inevitable, in this case that buying bitcoin at $10k was a good idea, when in reality we were deathly afraid of being the greater fool. The best way to combat hindsight bias is to write things down. Nobody actually does this, but keeping a log is a great way to keep yourself in check. If you don’t own cryptocurrencies and have no plans on buying, you have two options. The first option is you spend every day waiting for a crash. Michael Steinhardt once said, "Nothing gives a better feeling to a money manager than making money for his or her investors when almost everyone else is losing." Even if you’re not a vindictive type of person, there’s a lot of truth in this statement. If bitcoin crashes, you’ll feel like you were proved right, that your discipline and knowledge of history paid off. The more healthy if un...
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