Time to get real for a minute. Why was Bitcoin created? What is the purpose of crypto currency? Depending on your answer to these questions will determine whether you are a true believer, or just looking to get rich quick. There is nothing wrong with getting rich quickly, if you have been in crypto for more than a couple years there is a good chance you already have a sizable amount of gains. What any new money investor needs to ask themselves is where markets are headed over the next 5 years in regards to crypto currency, and specifically Bitcoin. I remember thinking Bitcoin was expensive at $300, ridiculous at $5,000, and ludicrous at $20,000… At over $60,000 I ask myself; maybe it’s me who was crazy for not seeing what Bitcoin’s value proposition really is. So what is Bitcoin for?
In short it is a lifeboat. It is a lifeboat to escape the sinking ship of fiat currency. Every country has a ship, some are nicer than others, but every single one of them is sinking. We can pretend the massive amount of money printing in response to the global pandemic is no big deal… but it is. We are edging closer and closer to the point where fiat currency is literally no longer worth the paper that it is printed on. In some cases that’s already true… Did you know it costs 1.75 cents to create a penny and 7.42 cents to create a Nickel?
As the fiat currency ship sinks, what are you going to do? Are you going to watch as your life savings exponentially decreases in value and purchasing power? Are you going to invest in Gold? Can you truly imagine a world where you have to shave a piece of gold off a larger chunk to go buy groceries? Does it not seem more obvious that you will simply use the smartphone in your pocket to scan a QR code and purchase food with digital currency? We are moving towards digital currency whether we like it or not. Why buy an ETF of something that is going to be incalculably valuable in the future… Just buy the Bitcoin instead… Learn how to use digital currency, understand hot wallets and cold wallets, start to educate yourself ASAP, because the way a ship sinks is gradually and then suddenly. (Excuse my Hemingway)
Bitcoin will skyrocket in price… and it will crash, and it will skyrocket again. Bitcoin will rip your face off if your strategy is anything other than HODL (Hold on for dear life). I’ve watched friends sell all their BTC at $20,000…. They made a good amount of money, but they all regret doing it. If you are not willing to buy, hold and forget, this isn’t a smart market to be in… if you are looking to day trade BTC, you are a risky gambler, it might work out for you…. But probably not. When BTC truly makes it’s run you won’t be able to get in. Just as when it crashes you won’t be able to get out in time.