Bitcoin just recorded its steepest selloff in three years.
Even some of crypto’s most outspoken champions are struggling to explain what triggered the selloff.
I’m amused by Bitcoin’s meteoric rise and plunge. Aren’t you?
In 2018, bitcoin fell 80% off a cliff.
The latest roller coaster?
A 45% plunge in four months, from October 2025 to February 6, 2026.
There was no single trigger.
Just a familiar selloff. Crowded trades. Leverage. Price over understanding.
Manias change. Maniac behavior does not.
As Stevie Nicks sang, “The sea changes color, but the sea does not change.”
It seems that the less investors understand about a mania’s object, the more obsessed they are to own it at any price.
Not a wise plan.
I’m not going to argue the pleasure of a venture highly rewarded.
Is anything better than scoring big on investments?
How about good returns over a long time? Boring?
What about good health built from great habits over time? Mundane?
Even with good health, tight money brings stress.
And people think about money all the time.
Most Americans are living one of three financial nightmares.
- In debt even with high income
- Paycheck to paycheck with little savings
- Overloaded with discontent and dissatisfaction
No wonder bitcoin is in the headlines!
But, after studying, writing and speaking on financial topics for forty years, I believe in three blazing rules for finding and keeping financial freedom in a chaotic world.
Blaising Financial Rule #1: No home runs
Every investment that takes off like a rocket usually falls like a rock.
That doesn’t mean it’s a bad investment.
It’s just that folks often gamble money with more risk than they can afford.
“You only find out who’s swimming naked when the tide goes out.” Warren Buffet
My rules for successful investing come from baseball.
- No home runs — SB
- Singles and doubles beat home runs — SB
- Consistent results beat instant results — SB
Invest in what you know makes sense and your peace of mind will stay in tact every season.
Blaising Financial Rule #2:Focus on the core
Never abandon your core interest to chase a satellite interest.
How many times has a doctor lost his shirt chasing a restaurant?
Just remember. . .
- Always reinvest in the core.
- Never let the tail wag the dog.
- Never take from the good to feed the bad.
“STOP & ASK: Will the same time and energy I’m putting into the satellite make more money in the core?” SB
Blaising Financial Rule #3:Avoid the Las Vegas syndrome
“I’ll be back in an hour honey, I just want to get even.”
How many deals have you stayed in simply to get even?
I had lunch with a celebrated Dallas entrepreneur recently.
He said his investment success was simple.
“When one piece of junk I own starts to go down, I sell it and buy another piece of junk that’s going up.”
How about that plan?
Save your skin and remember that peace-of-mind investing is not to get even, but to progress!
Stay smart, not cute, with your money
- No home runs
- Avoid the Las Vegas syndrome
- Focus on the core not the satellite
What’s your favorite financial rule?