Short-term Ego Battles Long-term Thoughts

Life is a battle of living in the present moment and planning for the future. One requires consumption in the now with limited deferment for the future while the other requires deferment of consumption in the now specifically to plan for the future.

Regardless of the differences in approach, you can effectively live in the now while also planning for the future, it just requires a deliberate effort to do both. If you are not deliberate with your focus and planning, you will struggle to live in the now while also planning for the future. It is also undeniable that to properly plan for the future, trade-offs in the now must be made.

• Instead of spending all of your paycheck today, some of it needs to be put away for the tomorrow.

• Instead of eating the whole pizza in one meal today, some should be put away for the tomorrow.

• Instead of choosing to procrastinate on the assignment or project that needs to be done, some of it should be done today, so that the tomorrow is not as stressful.

There are countless other examples I could explain but every example will continue to display that it is your choices and sacrifices in the today that impact your version of the tomorrow.

I will argue that many of the choices for consumption in the present stem from the desires of the ego and the desire for short-term gratification.

• People opt for scrolling social media instead of reading a book because one is a quick-fix hack for dopamine.

• People opt for the new fad-diet instead of changing their workout or dietary habits because they see a quick-fix hack to lose weight.

• People stop creating their company, posting online, or pursuing a passion after not receiving immediate payment or recognition because they expect everything they do to be an overnight success.

The ego is for the now.

Removal of the ego is for the future.

With everything going on in the markets over the last couple of days and weeks, I have come to the firm conclusion that the emotions you, and I feel, stem from how much our egos are interacting with our thoughts.

If you have equity positions that are underwater or have fallen since reaching all-time highs, it is difficult to focus on the fundamental beliefs you have in the company or position you have and still maintain the belief that you are set up for a positive outcome in the future. In this way, the ego sees a red day in the market and bristles with anxiety and fear in the short-term. In this way, the ego fights to gain control of our minds.

Battling the ego is important because regardless of macroeconomic current events, unless something fundamentally changes with your need for liquidity in the short-term, or with your outlook on where your investments are placed, you should not be swayed on your long-term beliefs. If anything, you should be cognizant of the opportunity to increase your position in an investment you believe in at a lower price.

Relating specifically to Bitcoin, when Bitcoin goes down in price, the ego inside tells me that I should feel pain and fear. That is the logical emotional reaction according to the ego. The ego and the emotions it aims to evoke can cause you to question your fundamental beliefs. On the flip side, the ego wants Bitcoin to rip to new all-time highs and reach numbers such as $250,000, $500,000, parity with gold, or even $1 million per coin by the end of the year. The ego wants the short-term gratification of “being right” as it relates to Bitcoin. The ego controls this lens of thinking.

However, by recognizing that these emotions are caused by the emergence of the ego, you, and I, can effectively navigate and recognize the realities of the market for what they are. Currently, if Bitcoin trends lower and fails to continually reach all-time highs and trend toward parity with gold, all that means in the short-term is that your dollar purchases more Bitcoin. This is a GOOD thing because it means that anyone can swap their fiat-based, inflation-devalued currency, for the hardest asset in the world. Bitcoin remaining lower in the short-term means that you can acquire more Bitcoin before it reaches terminal velocity and continues to capture a larger pie of the world’s wealth. If anything, the macroeconomic environment for Bitcoin environment has never been more bullish for Bitcoin because, remember, the United States government publicly announced a United States Bitcoin Strategic Reserve. With fundamental forces strengthening the Bitcoin thesis, a cheaper Bitcoin today should be viewed as a gift. Removal of the ego lets you realize the opportunity in front of you and lets you better prepare for the future of your life and the life of your descendants.

I will also emphasize that while this is a Bitcoin-only newsletter, this perspective relates to any investment you may have and any habit or action you may have in your life as a whole. If things seem more difficult in the short-term, zoom out your perspective and see if any of your long-term thoughts or perspectives have been impacted. If they haven’t, it may be worth it to reassess the emotions you feel in the now.

Remember:

The ego is for the now.

Removal of the ego is for the future.

Stack SATs.

The views and opinions expressed here are for entertainment purposes only and should, in no way, be interpreted as financial or investment advice. Always conduct your own research when making an investment or trading decision, as each such move involves risk. I am not a financial advisor and do not claim to be qualified to convey information or advice that a registered financial advisor would convey to clients as guidance. Nothing contained in this e-mail/article constitutes, or shall be construed as, an offering of financial instruments, investment advice, or recommendations of an investment strategy. If you are seeking financial advice, find a professional who is right for you.