An Open Letter to the Bitcoin Class of 2023
💡 Daily Reminder: Stay humble, stack sats
Bitcoiners,
Below is an open letter I wrote to all the new bitcoin curious individuals getting started in Bitcoin this upcoming year. It contains high-level lessons I learned over the past 5 years. Let me know if I missed anything by replying to this email or adding a comment to the post.
And feel free to bookmark this letter and send it to any Class of 2023 Bitcoiners you meet this year.
Dear newly minted bitcoiner,
If you are reading this letter, I am assuming Bitcoin has captivated your attention. And that every day goes by, your learning journey goes deeper and deeper.
Don't worry, you're not alone. There are many bitcoiners that have a similar experience ranging from the Bitcoin Class of 2009 - 2022, including myself.
The reason I am writing to you is to teach you everything I learned over the past 5 years in the Bitcoin space. This is what I would do if I was brand new to Bitcoin in 2023.
Learn Bitcoin 101
There is a linear relationship between one's understanding of bitcoin and how much one owns.
Do not skip learning the basics. Understanding the principles of bitcoin will set you up for success as you continue your journey down the rabbit hole. It will also keep you from selling when you experience a 50% or more drop in price.
I curated the best resources on the internet for learning about Bitcoin in the Ultimate Bitcoin Resource Guide so you can fast-track learning.
Bitcoin NOT Crypto
A common path beginners take is to:
Buy bitcoin
See other cryptocurrencies go up in value quicker
Decide to trade btc for other cryptocurrencies
Get rekt (lose most of your wealth in cryptocurrency scams)
One of the most important lessons you can learn early on is there is a major difference between Bitcoin and all the other cryptocurrency assets. Other cryptocurrencies will use marketing tactics and buzzwords such as "decentralized", "smart contracts", "yield", etc. It's ok to speculate by buying other crypto assets but make sure you understand why Bitcoin is drastically different.
Don't Fall for Yield
Avoid any company offering yield for your Bitcoin.
Crypto companies offer anywhere between 1-10% for you to send your bitcoin to them and lock it up for a predetermined period. This seems very tempting, but the risk is not worth the reward. These companies offering yield purposely leave out how they use your bitcoin funds such as the case with BlockFi which went bankrupt in 2022.
Buy a cold storage bitcoin wallet and leave your bitcoin there.
Low-Time Preference
Lowering one's time preference translates to thinking long-term and valuing the future over the present.
Understand this journey you embarked on will last for at least a decade and maybe your entire life. When the price drops significantly, lower your time preference and reconsider selling with the knowledge that the price will eventually go back up to the point when you are in profit again. The concept of low-time preference applies to many areas of life including diet, careers, investments, and much more.
That's it!
Cheers to fixing the money in 2023,
-Pod
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Eric Podwojski
Founder, Bitcoin EDU
Twitter: @epodrulz
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.
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