Understanding Your Circle of Competence

Happy Friday Bitcoiners!

Everyone thinks I'm an idiot for not starting a Bitcoin podcast.

I've got the equipment and I understand Bitcoin better than most (or at least I think I do). Every week, I see yet another Bitcoiner start their own show, so surely there’s a clear demand for it right?

Wrong! Preston Pysh, Lyn Alden, and Jeff Booth already exist and they’re better than I'll ever be (lets be real - they’re GOATs).

So instead of competing with them, I focus on where I have an edge. This isn't false modesty - it's strategic self-awareness. And it's the most underrated competitive advantage there is.

We explore this in further detail by diving into👇

1. Why being average is liberating

2. How Bitcoin rewards this mindset

3. A framework to help you stay within your own circle of competence

Let’s dive in⚡

#1 Why Admitting You Suck is Actually Liberating

Three years ago, I was convinced I should learn to code.

"Everyone should know how to code" the internet told me. "It's such an awesome skill to have" So I signed up for a workshop, downloaded the content, and allocated ~100 hours to the task at hand.

Halfway through I hit a moment of stark realization. I didn't just need more practice - I was fundamentally, embarrassingly terrible at it.

Two options: be gritty and grind through (spending months becoming mediocre at best) or recognize that coding really wasn't in my wheelhouse.

I chose option two. Best decision I made that year. This is the principle of staying within your own circle of competence (see below) - it's saved me from countless expensive mistakes ever since.

This is what most people miss: Recognizing you're average at something isn't limiting - it's the opposite, its liberating. It frees up that previously wasted mental energy to focus and double down on the areas where you might actually have an edge.

But we live in a world that tells everyone they're special. Social media rewards people for cosplaying as experts which gives everyone a false sense of believing their voices deserve to be heard by the whole world.

The Bitcoin space is especially guilty of this - with low barrier to entry, suddenly everyone is a professional macro expert, technical analyst, AND monetary theorist at the same time.

Just last week, we covered the importance of saying "no" quickly and often, to prevent us making poor decisions we’d later regret - the exact same principle applies here.

We need to ruthlessly say "no" to any and all opportunities outside your circle of competence, even (and especially) when they look exciting.

#2 Why Bitcoin Rewards Self-Awareness

Here is where it gets interesting: Bitcoin itself is a prime example of staying in your lane. And it systematically rewards those who do the same.

Bitcoin is the ultimate self-awareness litmus test.

Think about Satoshi. He could've stuck around, done the podcast tour, written the Bitcoin Standard, and built a personal brand worth billions.

Instead? He disappeared. He knew his job was creating the protocol, not becoming its unofficial spokesperson.

That's self-awareness in action - knowing when you've done your part and when it's time to step back.

Compared to the altcoin markets, where every token promises to solve every problem: DeFi, NFTs, gaming, social media, supply chain - magically rolled together into one “base layer” protocol. It's the opposite of staying in your lane.

In contrast, Bitcoin actually rewards those who seek to replicate Satoshi’s self-awareness with both:

1. Superior returns - The smartest traders alive have underperformed early plebs who just bought Bitcoin and HODL’d.

2. Discipline reinforcement - every time you resist chasing the latest shiny object, you reinforce your own discipline.

I’ve often seen Bitcoiners seduced by complexity. They start simple: buying and holding. Then they discover lending platforms which inevitably leads to greater appetite for yield through ‘Bitcoin DeFi’ or treasury stocks and NFT’s.

The self-aware ones catch themselves drifting and return to basics. The delusional ones convince themselves they understand everything and fall prey to Bitcoin’s volatility, ending up with less Bitcoin than when they started.

Bitcoin rewards those who are self aware and humble because it’s creator adhered to those very same principles.

#3 The Ultimate Bullsh*t Detector

Below is the practical framework (which I’ve dubbed “The Ultimate Bullshit Detector”) that helps me stay within my circle of competence:

Step 1 - Apply The ‘Charity Principle’

Every month I contribute to charity instead of volunteering at soup kitchens or Habitat for Humanity. While this may surprise some people (who think I'm selfish or lazy), the reasoning is highly logical.

Habitat gets more value from my donation than from my incompetent hammering on someone’s roof. By focusing on what I do well rather than pretending I'm good at manual labor, I’m able to generate more total earnings which I can then give in the future.

By saying no to Habitat, I’m able to double down on what I am good at (writing, building businesses and ultimately investing in Bitcoin).

This applies in all walks of life. Every hour I spend becoming a mediocre podcaster is an hour I could have spent getting better in an area where I have a distinct edge.

Step 2 - Answer A Few Simple Questions

Before diving into anything novel, I ask myself:

1. Am I actually good at this, or do I just think I should be?
   The coding workshop taught me this difference the hard way.

2. Is someone else already doing this better than I ever could?
   Preston, Lyn, and Jeff exist. I don't need to reinvent their wheel.

3. What am I NOT doing while I'm doing this?
   Opportunity cost is everything. Time spent on mediocre pursuits is time not spent excelling at your actual strengths.

If I can't confidently answer the above three questions, I don't do it.

Step 3 - Reflect on Past Mistakes

The final step is to acknowledge previous mistakes - this keeps me humble by reminding me of past failures.

Warren Buffet recommends learning from other’s mistakes (its cheaper and a lot easier). Unfortunately for us, we’re more likely to learn from our own mistakes (hence the importance of always having a bias towards action).

By implementing the above, we’re able to refine our bullshit detector and stay highly focused while others chase the latest narratives (Defi Summer, NFT mania’s and Terra Luna’s infamous pump and dump).

Key Takeaway

Self-awareness isn't just nice to have - it's your competitive advantage.

While everyone else is pretending to be experts at everything, you can focus on the one thing that actually matters: stacking sats and ignoring the noise.

I'm probably average at most things. But knowing I'm average has (hopefully) made me above average at the most important thing - not getting rekt.

Ultimately, its about staying in your lane - something I’d highly recommend (the traffic's also lighter there 😏).

Sincerely,

@Publius256