I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy.
-Warren Buffet
This quote is constantly bandied about as justification to invest in Bitcoin, and especially now that there has been some nice price movement in the upward direction. But this Warren Buffet quote is only relevant with the proper context, which is that Warren Buffet only invests in things he has a fundamental understanding of and can quantifiably value. You can confidently be greedy when others are fearful if you have a sound investment thesis and are a fundamental value investor. This is how he turns his investments into home runs, he knows what he's buying and what it's worth and can weather the negative sentiment until the market learns what he already knows. This doesn't apply at all to a speculative investment like crypto. Following this advice willy-nilly is gonna get you burned because you're misunderstanding the intent and the application.
Don't not buy Bitcoin if that's what you want to do, but don't fool yourself into thinking you're following Warren Buffet's advice. Warren Buffet doesn't speculate, and if you're buying crypto, you're speculating.
If you’re doing that but doing it at the wrong time then I’m sorry for you. And by the way, who told you that others in Bitcoin are afraid or greedy when you can’t even see them? Well, what I’m trying to say is that whatever you’re doing you should do it at the right time, by the way BTC is something that is being driven by the force of the crowd, so the earlier you get in, the much better you will achieve.
If you’re trying to be greedy when price has already gotten to highest it would do for that year, then you will. End up as one of those that loses.
