7 Investments I'm Making This Year (Part Four)
The next entry in our week long series where I show you places I am personally focusing my time, energy, and money in 2021.
Feel free to repurpose any ideas and use them for yourself.
The next entry in our week long series where I show you places I am personally focusing my time, energy, and money in 2021.
Feel free to repurpose any ideas and use them for yourself.
Investment Four: Bitcoin
I know, we're in Bitcoin mania now and prices are at all-time highs. It feels a little like 2017 with everyone talking about crypto again.
I know, we're in Bitcoin mania now and prices are at all-time highs. It feels a little like 2017 with everyone talking about crypto again.
I dollar cost averaged Bitcoin all summer (from March to August) before taking a break when I thought the price was getting too high.
As it turns out, I could have kept investing then and still doubled my money.
Whoops!
As it turns out, I could have kept investing then and still doubled my money.
Whoops!
While I don't think Bitcoin will replace traditional banking, and I have no interest in speculating on random penny crypto currencies, I do think there's a better chance that Bitcoin is here to stay now that we've seen global lockdowns and endless money printing.
Crypto often reminds me of homeopathic medicine, in the sense that there are legitimately good ideas and applications. But they often get sidelined by off-the-rails pie-in-the-sky kookery.
One minute we are having an actual discussion about vitamins, and then we suddenly veer into magnets curing AIDs purified drinking water dampening our latent psychic abilities.
As such, here are my expectations for Bitcoin:
1) It becomes an alternative store of value / investment in the same style as previous metals, fine art, etc...
2) Bitcoin will remain "niche."
1) It becomes an alternative store of value / investment in the same style as previous metals, fine art, etc...
2) Bitcoin will remain "niche."
What I mean by this is that Bitcoin will never be adopted on a wide scale by the average person. If that sounds bearish, remember that most people don't own a significant amount of stocks either.
And the majority of folks don't have fine art, gold, or expensive jewelry.
And the majority of folks don't have fine art, gold, or expensive jewelry.
My prediction is this:
Bitcoin is never widely adopted by the masses.
BUT, it is adopted (and a near perfect tool) for the exact folks who might need to make an international getaway and secretly take a large portion of their wealth with them.
Bitcoin is never widely adopted by the masses.
BUT, it is adopted (and a near perfect tool) for the exact folks who might need to make an international getaway and secretly take a large portion of their wealth with them.
Because of this, I'm buying more.
Rather than trying to time the market or "buy the dip," I'll simply dollar-cost average a fixed amount each month.
Buying a consistent of Bitcoin each month this year would have still doubled, tripled, or quadrupled your money.
Simple strategy, but it works.
Buying a consistent of Bitcoin each month this year would have still doubled, tripled, or quadrupled your money.
Simple strategy, but it works.
The biggest drawback to Bitcoin (in my opinion) was always the fact that it doesn't generate cash flow. This is the same problem as gold.
If you buy-in and the price stagnates, you get nothing while you wait.
If you buy-in and the price stagnates, you get nothing while you wait.
A good solution is to put SOME of your crypto in a high-yield Bitcoin account. I keep some funds on BlockFi and it nets me 6% (paid in Bitcoin) interest per year.
Even a partial coin doing this nets you passive crypto and hedges in case we really do see $1 million Btc.
Even a partial coin doing this nets you passive crypto and hedges in case we really do see $1 million Btc.
BlockFi is actually running a sign-up special right now where you get $25 in Bitcoin when you open a new account BEFORE Jan 1st (and $10 after that).
This referral link takes you to the offer:
blockfi.com/?ref=17d5f937
This referral link takes you to the offer:
blockfi.com/?ref=17d5f937
Personally, I wouldn't bank on hopium or treat Bitcoin like a lottery ticket where I expect one coin to be worth trillions of dollars.
However, Bitcoin certainly does have value. And because of this, I'm going to dollar cost average more of it...
However, Bitcoin certainly does have value. And because of this, I'm going to dollar cost average more of it...
While splitting my holdings between private storage and a high-yield BlockFi account.
P.S. Here are the previous entries:
Day 1:
Day 2:
Day 3:
Day 1:
https://twitter.com/XDays/status/1343561230817112065
Day 2:
https://twitter.com/XDays/status/1343925938376081408
Day 3:
https://twitter.com/XDays/status/1344398021459640328
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