⚡️ In the bull market, I hear such statements every day, but I never expected that this time it would be my relatives making them. - -
First of all, I do not recommend anyone to sell their house and go all in.
New friends in the circle might not understand why, because this path is not suitable for ordinary people. Let me tell you a story about an early 'go all in' brother and his story —
In 2014, there was a very popular ID in the Bitcoin forum called 'Encounter in Notting Hill'. On January 28, he used all the savings his family had accumulated over 7 or 8 years to buy a house and purchased 100 Bitcoins.
People in the forum laughed at him for being foolish, but he said that life rarely offers opportunities to fight, and he did not plan to sell in the short term. He borrowed money just to get through the New Year.
He dared not tell his wife and family about buying coins. His wife said that money kept in their company could earn 7.2% interest, and he could only say that the investment he found was higher than 7.2%.
Later, his family found out, and his wife and mother-in-law continuously pressured him, even calling him in the middle of the night to sell his coins. It's hard to imagine how Brother 480 got through those days and nights.
After a significant increase in 2013, Bitcoin fluctuated in the following two years. In 2015, Bitcoin dropped to $175, and friends in the forum mocked him, having lost his house and resources. Brother 480, who was in a state of anxiety and panic every day, couldn't hold on anymore.
Finally, in 2016, after enduring two years of hardship, Brother 480 ultimately could not withstand the test of time and sold all his Bitcoins at a price of 3000 RMB (over 400 USD) each before Bitcoin took off. After two years of waiting, he lost a net of 180,000.
However, right after Brother 480 cut his losses and exited, Bitcoin reached a historical high in the following year, hitting 130,000 RMB each.
If measured by today's coin price, the value of these 100 Bitcoins is now close to 56 million RMB.
This is the real experience of an ordinary person who sold their house and went all in.
So, even today in this bull market, I still do not recommend anyone to sell their house and go all in, for three reasons:
1. So far, I have only heard of two predecessors in the crypto circle who successfully sold their houses and went all in, such as CZ, and their understanding and psychological quality are not comparable to ordinary people. Too many people have once possessed large amounts of wealth, but unfortunately, those who can keep their wealth are rare; having had wealth is more painful than never having it.
2. After selling your house and going all in, the pressure you face is unimaginable for ordinary people. The concealment and reassurance for your family, the acceptance and confidence amidst fluctuations, the ridicule from others, the compression of quality of life; under such pressure, there will come a moment when you waver and doubt yourself. This moment marks the beginning of your logical collapse.
3. All 'go all in' statements come from regret after a significant rise. However, if you really do this and then experience another FTX, 312, or 519, your risk tolerance will drop to zero, unless, like me, the funds you are risking are just a small portion that you can fully afford to lose.
Everything can be summarized in eight words, and this is how I replied to my relative —
"Believe in cause and effect, abandon illusions!"
