Successful investing relies on probability estimation rather than price prediction; by identifying assets that are historically cheap and investing over the long term, investors can achieve positive returns through favorable odds, similar to how a casino makes money over time despite not knowing individual game outcomes.
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π― Buy Cheap Bitcoin. Win Long Term. Here's Why.Added:
Let's be honest, [music] nobody knows where the price of anything will be in 1 year or in 5 years or in 10 years or heck, even tomorrow. Nobody knows where the price of Bitcoin will be, where the price of gold will be, where the price of the stock market will be. Nobody knows. All we can do is we can try to estimate probabilities. And that's already enough to beat the market. We don't need to know where the price of Bitcoin will be 5 years from now. If we know, however, that the price is comparatively cheap, historically speaking, for example. Think about it this way. Let's say you run a casino.
You have no idea what will be the outcome of your particular game of, say, roulette, right? If you've got a customer, and that customer plays roulette, you do not know what the outcome of a particular game will be.
But you do know that the probabilities are in your favor. And so, if that customer plays for long enough, over time, just due to law of large numbers, you will make money. And the same with investing. We don't know what the outcome will be when we invest, but we do know if we invest in the cheap things, if you have the kind of right probability estimations, that long term we will be able to beat the market. It's about probabilities, not about deterministic thinking, where we will be in 1 year or in 5 years even.
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