In May of 2016 you could have bought one Bitcoin for less than $500. Today, as of this writing on November 21st, 2024 at 7:53 a.m. Central Time, one Bitcoin is worth $97,532. If only I had spent $5,000 back in 2016 on Bitcoin, I would be a millionaire today. I know what you're thinking...you also missed the boat. It's too late to buy Bitcoin. I don't have $97,000. Heck, some of you may not even have $1,000. It's okay, because we are here to disrupt everything and head to higher ground together.
I started investing in Bitcoin around year 2021, acquiring Bitcoin at an average cost of $46,805. The past is the past, and investment is all about the future. It's not where you've been, but where you're going that counts.
And that's really the question for Bitcoin. Would you spend $97,000 on Bitcoin if you knew in two years it would be worth $500,000? Absolutely, unless you knew of some other better asset that would more than 5x your money.
The truth is no one can predict the future. I am not here to proclaim Bitcoin as infallible. But I do think it is clearly a paradigm shift that we haven't seen since the creation of the internet. Bitcoin is different. People far smarter than myself have realized this, and they realized it well before me. Today, all the "smart money" realizes Bitcoin is different. I am talking billionaires, millionaires, and even "trillionaires" like Blackrock and Fidelity and world governments. Massive organizations that are buying Bitcoin and will continue to do so.
But you and me? We are just the little guy. And one thing that is intriguing about Bitcoin is that the little guys like you and me can benefit just as much from Bitcoin (if not more so). You don't need to be a millionaire to buy Bitcoin. You just need a bit of knowledge and to be proactive with your wealth management. You can buy $10 of Bitcoin, or $100. In fact, in 2021 I transferred exactly $100 to my cold wallet and left there to the present day. It's now worth over $300. If I had put all of my money in Bitcoin at that time I would have tripled my net worth. This works whether you are rich or poor. And if you're poor, arguably you have less to lose and more to gain...namely, getting out of poverty once and for all.
Now you may say, I don't care about money. It doesn't matter. Well, no, money doesn't buy happiness. It doesn't buy love or health. But let's not be stupid. Money is important. A God-fearing man that won't provide for his family is worse than an unbeliever. The Bible says, "Wisdom is a defense, and money is a defense: but the excellency of knowledge is that wisdom gives life to those that have it." If you have to choose between wisdom and money, choose wisdom. For by wisdom you can get money and everything else including life itself.
So what does wisdom tell us about money? We can't predict the future. We can only do our best to make good decisions today based on information and using our reasoning abilities. So let's reason together:
You have to store value somewhere, and the alternative to Bitcoin is the dollar, gold, silver, securities in companies, real estate, fine art, collectibles, and so on. Bitcoin has outperformed them all over recent history.
Gold, silver, real estate, and other collectibles and commodities can be good investments but they are difficult to store and preserve, and can be easily stolen or ruined in a disaster. .
This leaves cash and securities. Your cash sitting in a bank account degrades in value over time because of inflation. If you have $100 saved today it will be worth $70 tomorrow, and then $50, and then $30, and eventually it will be worthless paper if left unattended long enough. Paper is not valuable. Assets and commodities like gold, silver, real estate, stock in companies, are valuable. And Bitcoin is a commodity (much like gold but better).
If you earn interest on cash in a bank account, you pay taxes. If Bitcoin goes up in value, you don't pay any taxes (until you sell it). This makes owning Bitcoin, all things equal, better than holding U.S. Dollars. (This should be abundantly obvious, but I am talking to the beginners here).
Your cash in a bank really belongs to the bank. It doesn't belong to you. You've just lent it to the bank until you ask for it back. Just ask them for your money if the bank fails. It will be nowhere to be found. Not only this, but the bank is also using your money to make way more money (that's how they can pay you any interest at all). The bank makes millions you make pennies. That's just how it works in the "normal world." But we are here to disrupt everything, escape the "system" that is the normal world so we can finally be financially free.
Now let's consider ownership of stock and businesses. Your stock in companies is subject to a counterparty.... namely, the company itself. The counterparty may be negligent or devious (even if you are the owner of the business! You should trust yourself too much!). The company may fail entirely. In which case the stock will be worthless.
Bitcoin is not centrally controlled or centrally owned. You actually own your Bitcoin, (particularly when stored in a cold wallet). Only you have access to the Bitcoin and nobody else. Bitcoin can be more securely stored and preserved than any other asset type in the world. Banks fail, businesses fail, the dollar fails. Real estate must be maintained and has costs, and can also fail (i.e., destruction by flood, hurricane, fire, property taxes, etc.)
Bitcoin is a scarce commodity. The value of something is based to a large extent on the desirability (or usefulness) of the item in question, and its scarcity. We are approaching a time when everyone will realize that Bitcoin is a better store of value than everything else. This creates intense demand which is already seen with regard to the "smart money." Money invested by people with expert knowledge and serious power. Think of Blackrock for example. But there will only be 21 million Bitcoins in existence ever. What we can expect to see is increasing demand for Bitcoin and less Bitcoins being available. Or to the extent that they are available...will be had at a higher price.
Bitcoin isn't perfect. It isn't in infallible. But when it comes to storing value, and making investments, nothing is perfect. All you have is a multiple-choice question, of which every answer is imperfect. My opinion is that Bitcoin is a disruptive technology in the financial world that will continue to appreciate in value for the foreseeable future. Even at the current prices, Bitcoin is still therefore a good investment and can be a remarkable investment.
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