Part 2/16:
Addressing a question from Minow about market doubts, the host openly discussed the psychological resilience required for crypto investing. He emphasized that investing is akin to a "blood sport," requiring assumptions and a strong mental framework. Notably, he shared that he's always prepared for Bitcoin to go to zero—yet, his actual probability estimate is less than 0.5%, based on expected value (EV) calculations.
This balanced outlook underscores the importance of risk management. The host explained his strategy of proxy assets like MicroStrategy, which leverage options to generate significant upside with minimal direct exposure to Bitcoin's collapse risk. Such proxy hedging enables him to withstand market lows without losing faith in the fundamental value of crypto.