When It Crashes, Do You Buy or Sell?

This episode was recorded in March 2020 when the market crashed after states started announcing shut-downs over COVID-19.

It's an interesting time. We saw the stock market crash, and even saw Bitcoin fall to $3800. Many got scared and sold, while others found it an opportunity to pick up investments at a discount?

The age-old investing advice has always held true, sell high and buy low.

What type of investor are you? Did you see this as an opportunity or a time to run? Gary and I talked about stance, and how we reacted to the start of this extremely wild roller coaster.

Interested in getting your feet wet in Crypto?

Download the Chrome Extension Lolli to get money back on some of your favorite purchases. Get $10 in Bitcoin when you use this link: https://lolli.com/ref/su72Kpnsem

Get the Fold App to receive Satoshi's (a type of Bitcoin) for gift card purchases from some frequently used brands (Starbucks, Amazon, Target, etc. Use this link to receive 20,000 Satoshis after your first purchase. https://use.foldapp.com/r/gTcqtrPk

Ready to start Investing?

I use Coinbase for Bitcoin purchases. Use these links for $10 at Coinbase.

Coinbase: https://www.coinbase.com/join/smith_2o5

Want to Join BitBlockBoom in August?

Head over to BitBlockBoom.com and use the code COUSINS for 30% off!

Here is the full episode breakdown:

BloodBath

Erin Gregor: Welcome. We've got an interesting episode of Clarifying Crypto. I'm Erin Gregor. I'm with my cohost Gary Leland, Gary. Welcome. We're in the middle of the blood bath. 

Gary Leland: The blood bath is right. It's a strange and trying times. There's a lot, a lot of weird wild, wacky, crazy weird stuff going on. There's a lot of weird stuff.

Erin Gregor: So we're recording this on March 17th, Happy St. Patrick's day. Uh, even though we're all sitting inside quarantine. 

Gary Leland: So, no, I don't know if you're having any green beer. We're not at our house. You know, my father died on st Patrick's day. So I really, it's not a time to celebrate. It's been 15 years, but it's just, it's kind of weird, you know, wish he hadn't died on a holiday, which isn't bad at all, but especially on a holiday.

Cause I used to go out and get drunk on green beer, everything. 

Erin Gregor: Yeah, well, sorry about that. But, uh, anyway, it's been an issue, like we said, it's been an interesting week. So the question is we were talking about it before we hit record, but we have been going go down, go down to 3,800. Were you able to buy at the 3,800?

Gary Leland: No, I wasn't. I was buying on the way down when it got to 30, I don't know I was using the Cash App, which you talked about quite a bit last week. And when it got to 3,800, I said, well, I'm just going to go ahead and buy a Bitcoin. And I went to buy and it told me I had reached my limit for the day already.

So I can buy at the low for the day. I think the last time I bought anyways, it's 4,200, but at 38, I said, this is it. It's not going to be any cheaper than this. I'm just going to go ahead and get it over with. And I was right. That was the low basically. How did you know it's not going to get any cheaper cause I've been reading.

Erin Gregor:  it's just interesting....

This episode was recorded in March 2020 when the market crashed after states started announcing shut-downs over COVID-19.

It's an interesting time. We saw the stock market crash, and even saw Bitcoin fall to $3800. Many got scared and sold, while others found it an opportunity to pick up investments at a discount?

The age-old investing advice has always held true, sell high and buy low.

What type of investor are you? Did you see this as an opportunity or a time to run? Gary and I talked about stance, and how we reacted to the start of this extremely wild roller coaster.

Interested in getting your feet wet in Crypto?

Download the Chrome Extension Lolli to get money back on some of your favorite purchases. Get $10 in Bitcoin when you use this link: https://lolli.com/ref/su72Kpnsem

Get the Fold App to receive Satoshi's (a type of Bitcoin) for gift card purchases from some frequently used brands (Starbucks, Amazon, Target, etc. Use this link to receive 20,000 Satoshis after your first purchase. https://use.foldapp.com/r/gTcqtrPk

Ready to start Investing?

I use Coinbase for Bitcoin purchases. Use these links for $10 at Coinbase.

Coinbase: https://www.coinbase.com/join/smith_2o5

Want to Join BitBlockBoom in August?

Head over to BitBlockBoom.com and use the code COUSINS for 30% off!

Here is the full episode breakdown:

BloodBath

Erin Gregor: Welcome. We've got an interesting episode of Clarifying Crypto. I'm Erin Gregor. I'm with my cohost Gary Leland, Gary. Welcome. We're in the middle of the blood bath. 

Gary Leland: The blood bath is right. It's a strange and trying times. There's a lot, a lot of weird wild, wacky, crazy weird stuff going on. There's a lot of weird stuff.

Erin Gregor: So we're recording this on March 17th, Happy St. Patrick's day. Uh, even though we're all sitting inside quarantine. 

Gary Leland: So, no, I don't know if you're having any green beer. We're not at our house. You know, my father died on st Patrick's day. So I really, it's not a time to celebrate. It's been 15 years, but it's just, it's kind of weird, you know, wish he hadn't died on a holiday, which isn't bad at all, but especially on a holiday.

Cause I used to go out and get drunk on green beer, everything. 

Erin Gregor: Yeah, well, sorry about that. But, uh, anyway, it's been an issue, like we said, it's been an interesting week. So the question is we were talking about it before we hit record, but we have been going go down, go down to 3,800. Were you able to buy at the 3,800?

Gary Leland: No, I wasn't. I was buying on the way down when it got to 30, I don't know I was using the Cash App, which you talked about quite a bit last week. And when it got to 3,800, I said, well, I'm just going to go ahead and buy a Bitcoin. And I went to buy and it told me I had reached my limit for the day already.

So I can buy at the low for the day. I think the last time I bought anyways, it's 4,200, but at 38, I said, this is it. It's not going to be any cheaper than this. I'm just going to go ahead and get it over with. And I was right. That was the low basically. How did you know it's not going to get any cheaper cause I've been reading.

Erin Gregor:  it's just interesting. Cause I've been reading like could it get down to 32 could get down to the low threes. Like what was your gut telling you on that? That, that was your little. Cause I, I can't, I'm going to be honest with you. Any mojo? I think I've gotten and figuring out Bitcoin is just I'm done. I can't figure it out.

Gary Leland: That was, uh, that was the low 32 is basically the low 32 is basically the load. Then it got to. After the drop from 19, it went down to 32, which was in March of last year. So a year ago, I just felt like 38 was close enough to go ahead and jump on it, you know, maybe say, and I knew that was the low was wrong, but I felt like at 38 you can't go wrong.

Even if it drops to a thousand, you can't go wrong. So I was going to go in it and if it dropped more, I buy another one. Right. You know, so but I thought 38 was the point instead of buying a hundred dollars worth or $200 worth a day on my income, averaging I thought it was a good enough amount to go ahead and make the call.

Now, what is it? 53 now. So that would have been a good call. 

Erin Gregor: Yeah, it would have been a good call, but it keeps going up and down. I mean, the FA... what's going on. I mean, you're seeing this in the stock market. You're seeing it in Bitcoin and what's been interesting too. 

Yeah. Oh, no, no, no, I didn't get the question. That's why I was just, So, yeah. So with the, with the whole, with all the stock market, I mean, everything is going down and every time you think you have what you buy a deal, I've been buying stocks at quote unquote deals, and then the deal gets better the next day.

So I'm really, really not doing that well, but on a, you know, I'm. You, and I talk a lot about this and we are not financial advisors, which you need to do your own research before you do anything of what we're talking about, but, you know, it's that whole longterm income. But in doing that and reading a lot about this, it's been one of those things where, um, there's been a lot of talk about Bitcoin showing.

Is it really that great of an alternative, uh, of, uh, alternative investment? Because it is falling with the stock market because it's right in line there. We've talked a little bit about this last week, but seeing what's happened, you know, in the past week, what are your thoughts on that? Because it's falling, you can see the decisions every time it's crappy decisions made by the government.

Every time they make an announcement stocks, fall, Bitcoin is, is following that same pattern. Well, you know, I think though yesterday, I think was one of the worst days in histories in the stock market. Bitcoin held its own. Yeah. No, everything go down yesterday and yesterday, I think they had to stop the market.

So Bitcoin didn't actually follow it yesterday. And if you look at the things that are dropping, Gold's dropping, Silver's dropping, everything is dropping. It's not, it's not just stocks and Bitcoin. It's everything, which is kind of weird to me. It seems it's as if there is no safe Haven. And then you've got to realize Bitcoin is still trying to.

Grow into a safe Haven and an asset. That's not hooked up to anything it's young. So, so it's still growing into that. Um, so, you know, to me, if it's able to make its way through this crisis right now that strengthens it from that aspect as to being a safe Haven, but it's still trying to grow into one. Um, just my thought on it.

But like I said, everything's going down and, and if you've got a lot of money and your guy tells you to get out of everything, You're probably getting at it, everything, you know, and probably everything. And then also I read the other day, most of the Bitcoin right now, and it's being sold a ton of it's coming from companies that have invested in digital assets.

And most of it's being bought by people. So it's being bought by people. And so by corporations and stuff that are getting added digital access during these times. So, you know, long term, that can be a good dude because the handlers are still holding the people who truly believe I'm not selling, you know, and I'm sending people.

Yeah. And I'm buying two, I bought some more this morning. So, so the handlers are still buying and increasing their position. Yeah. Yeah. We'll find out who's right. I mean, you know, but, uh, yeah, there's a lot of panicking going on and if you just got into Bitcoin for the first time, your buddy said, Hey, you might want to buy some Bitcoin and you bought $50,000 worth that $10,000.

You're probably panicking right now. Right? Yeah. And they talked a lot too, like, we're good. We're going to get into a point where some people are going to need cash. And unfortunately, you know, that cash is either tied up into a stock or, or a Bitcoin or something along those lines. So selling will have to happen in cases like that, to where, uh, you know, they need that money.

So unfortunately you're going to see more selling. I think, I don't think the, I don't think we're done with this. I don't think we're at the bottom, whether it's in whatever. I think there's going to be a lot more playing out. Well, I think Bitcoin got hit with a double whammy. Uh, compared to stocks, our goal and that's reason.

So you consider Bitcoin got the double whammy. I'm going to call it. I think it's done pretty good, but you know, Bitcoin, before the stock market went, this bad was already having trouble from the one coin. Scam that happened. You know, one coin was a scam that happened last year, a multilevel marketing of a coin.

Gary Leland: This lady made who evidently was really smart because she made a lot of money and she talked people into buying the one coin with their Bitcoin. And so all these people invested in one coin, a coin she made, and whenever people would say something, you know, she would convince a with her conventions and stuff that scam they're trying to.

Take your money, keep it in one coin, spend your Bitcoin. And one day she disappeared. I heard about, yeah, well, like right before all this started happening, I told my wife and said, we're getting ready to see Bitcoin drop maybe to 7,500 7,200, because a lot of that one coin or a lot of Bitcoin that she had had been moved to exchanges.

Whenever you see something. Big like that. That's from a scam moving, they're getting ready to sell it. And so that price was already going down. I believe from the Bitcoin and the OneCoin scam. Now the Bitcoin wasn't a scam. Just clear that up for the audience. She made a scam coin to get people's Bitcoin.

So the big point was a good Bitcoin. It was spent on a scam and people freely gave her their Bitcoin talk, their friends and relatives, and to given the Bitcoin. Way to get the scam coin. Cause it was a multilevel marketing thing. And then she disappeared. Now there was warrants for arrest. She had like $10 billion or something.

She got out of people in that coin. Like I said, it started moving and whenever that stuff sits still for a long time, it started moving. That means it's going to probably be going and being sold and dumped on the market. So I was looking for a drop already. Then you had this happened with the financial stuff on top of that.

So, like I said, we've had an incredible drop, but I think we had a double whammy hit on, not just, not just the financial thing we had the one coin sell off too. Yeah. And so the fact that it set sitting at around 40 or 53, 5,400, isn't horrible. 

Erin Gregor: Did they ever find that woman there's a podcast about it, right?

Gary Leland: Yeah. I'm sure there is. Also been interviews with people taking in the scam. And at first, you know, they were arguing with the people. This is not a scam. You're crazy. And then they've gone back to those same people. No, you were right. I should have listened to you. I got scammed terribly bad. I lost all my money.

My parents lost their money, you know, from her, but her brother took over when she disappeared, but I think he's been arrested also, but they've not been able to find her. So she disappeared with the keys to the, uh, to the wallet. And no one has found her and she's very well at the person right now. We may catch her and they can send everybody their money that are out.

If you consider that it's to me, Bitcoin is done. Okay. Cause this had this more than any other assets had happened to them and they've all gone down. Right. So, no, and that's a good thought. And right now, too, we were talking about this too, before I hit record, but the fed keeps announcing, I mean, it was started as a 700 million or $700 billion trial, a bail out.

They're going to lend money to hotels and airlines. And that number keeps increasing where we're getting this number, this money I'm still very unsure. Hahaha. But, um, now we're going to get there talking about everybody's going to get it just a check sent to them. It's going to be like Christmas. We're all gonna get a thousand dollars.

Uh, I like the idea hearing where they aren't gonna charge. It will make us pay income taxes for last year, more than a thousand dollars. I heard that one yesterday and the day before you're talking about canceling the income tax, no one has paid income tax for their income from 2019. That wouldn't be a good deal.

That'd be a great deal. But actually it would be pretty, pretty fair to cause the people who made more money, haven't gotten hit harder than the people. I think who didn't make as much. Cause people didn't make as much, haven't taken a big loss, you know, and don't have as big a bills as the people who did make a lot.

So if they did something like that, it's proportioned according to your income. Yeah, it probably is too fair to me. Cause that's seems more fair. I mean, it's nice. Everybody got a thousand dollars, but a thousand dollars to someone who makes a million dollars a year, it's not going to help them out very much.

You know, someone who makes minimum wage is going to be a big deal. But the only side to that is the people probably making minimum wage or harder up on a job right now than the person making a million dollars. Right. I mean, hopefully the person making a million dollars, isn't hit too. I mean, you have to be super irresponsible if the market goes down and you're hit that hard that you can't pay your bills.

And I think it's, Oh, no, I'm not saying they can't pay their bills. Let's say for instance, not to, I'm not saying I make a million dollars, but my retail store, I haven't had a person at my store at three days. Wow, come in my store or like my wallpaper store is for some reason they're going into wallpaper store, but my other going into paper stores it's because now is the time to get all the projects done.

Erin Gregor: We have spent so much money at Home Depot because you're in your house all day and you're looking around going...

Gary Leland: Yeah, that might be it. Cause we've had a good day today, but no one, but all softball games and baseball games, tournament games are canceled. So no one was buying baseball, softball equipment, my sporting in store.

So technically I'm going to weather through this fine, but I'm going to lose a lot of money, right. You don't know, by being open in case someone does want to come, because I don't want to like lay off my employees and say, you guys stay home. They need the money, you know? So I'm keeping the doors open. If I was wanting to be a greedy little pig, I just go, I'm not making enough to make it worth it, even do the employees.

So I'm just going to shut it all down until it's better. And then they would be hurting. So that's why I said, yo, people who have more money I think are going to have a much bigger loss. I'm not saying they can't live. They just going to have a really big loss. Yeah, no, I agree. But I feel like too with this whole, I mean, I'm going to be honest with you.

Erin Gregor: The whole bailout, the whole 0% interest. All of these things that the feds are just like knee jerking and putting out there make me so much more nervous than the coronavirus. Like I agree. 

Gary Leland: I couldn't get hurt by this, in the long term, but you know, you got 0% interest rate, quantitative easing going on both of those at the same time.

If they don't work. There's nothing left. Right. You know, I mean, and like I said, the I'll take the thousand dollars. Don't get me wrong. I'd take $500. But a, those two of the quantitative easing and the, um, the 0% interest rates, I don't know what more you can do besides that, you know? And that brought up, brought me to my.

Other thing I was telling you about money in the bank, trying to get this. 

Erin Gregor: So this is super interesting again, with the whole false idea that the money is ours. Everything is taken care of tell this story because I feel it's really interesting. I had no idea about this. 

Gary Leland: Well, we went down to Fredericksburg for the weekend in which I guess 65 year olds shouldn't be out in public.

Much less to go on vacation, but one of the way back from reading blogs, I said, you know, I'm seeing money. In Manhattan. Uh, they went, had to run on the banks last week and they were only allowed to get out $3,000 from Bank of America. They had limited it to $3,000. So we decided Monday morning, we were going to go to the bank and pull out, just pull out like 8,500 or something , a little bit of cash.

So my wife went to the bank yesterday, said I'd like to withdraw 8,500, which we have way more than enough. It's not like there's not enough in there. And they said, the all you can have today is $2,500. And she's like what? And they said, that's all you can have is 2,500. That's all we're giving people are $2,500.

Um, and she was a little upset and she was like you going, but that's my money. Which, as I told her, when you got home, as I told you, it's really not your money. Well, it's not your money. It's the government's money, it's the fed's money, it's not your money. They're allowing you to use that money. They can take it away. anytime they want to. They do it from people all the time. They take money all the time for people's accounts. You know, they shut it down with us for criminal reasons or whatever. Or they take it cause it's not yours. It's theirs to do what they want with. And I'm not saying they aren't proper reasons to take it.

Don't get me wrong. It's just an example that they can take that money and time they want to, it's not really yours, it's theirs. And they allow you to have it. You have permission to have that money. That's how I look at it. But anyway, she was able to get $2,500 and they said you can come back tomorrow and get more.

But I haven't talked to her today. I'm open. It's still $2,500 a day. It could be $2,000 today. You know, it could be $1,500 tomorrow. I don't know what the limit is. The more people that figure it out and start going by to get money. The less is going to be, cause they only have so much cash in the bank.

Right. I was talking to my sister yesterday. I told her, she goes, well, where did I do with my money? I give them my money. What do they do with my money? I said, do you really give them money? Or do you give them a check or a transfer? And she goes, well, a paycheck. I said, well, you really don't give them cash.

Do you? So why would they have that cash sitting? You know? So, um, Yeah, it's limited on what you can get right now. She went by her bank and asked for $5,000 and they gave her $5,000 and she says,...