I just started watching your youtube channel and I love your stuff. I'm just curious as to why you recommend to base all of your investments off of bitcoin instead of usd. I'm sorry if you've already answered this question but I couldn't find it anywhere and I don't remember the video where you talk about this.
The way that I think of it logically is that since usd is the currency that I'm trying to get more of, I should base my earnings off of how much money I make in usd. For example, the situation I have in my head (and I might be wrong) is lets say I have $100 of etherium and the usd price of etherium drops 10% but the usd price of bitcoin drops 20%. In this case etherium would have gone up in relation to bitcoin but it went down in relation to usd, so if I was basing my investment off of bitcoin I would think that I have done well but now I only have $90 worth of etherium so really I lost $10.
If you already have a video explaining this can you please link it? Also if not, I think this would be a great video topic.
Check two posts ago where I talk about the #1 mistake beginners make - that's where I talked about it. However, many people still had a question along your lines because I mentioned 'destroying value' in the video if you're up against USD, but down against BTC so will clarify here.
Probably the easiest way to understand it is to imagine that you hired someone else to manage your investments into cryptocurrencies. This person invests in Ark and doubles your USD. But had you just bought Bitcoin, you would have quadrupled your money. You likely wouldn't be too happy with the person you hired to manage your investments would you? You could have just bought Bitcoin and got double the return! You might even go as far as to fire the person. This is the dilemma wealth managers face in the real world when comparing against the S&P 500.
However, if that wealth manager can illustrate that they took on less risk during that time frame, or illustrate to you in a meaningful way that their bet will pay off in the long-term and the market is being irrational in the short-term, then you may decide to keep them around. Imagine yourself as that wealth manager. If you're underperforming Bitcoin, then you must justify that underperformance with logic otherwise you are just destroying value for your client: Yourself.
Hope that makes some sense.