The Early Bird gets Rich on Bitcoin

The world is still figuring out what to do with Bitcoin and the rest of the Cryptocurrencies.  Several people have become millionaires from making early investments.  The question now is, will it make more millionaires, or will it go the other direction?

If you are interested in learning more, I highly suggest you take the time to read The Early Bird Gets the Bitcoin.  The book is written in plain language by a very smart author who is only 11 years old.  Don’t discount this book because it is written in simple language that a kid can understand.  I personally read this over the course of about a week and knew that I needed to be more involved in cryptocurrencies if I wanted to be part of the future of investments.  I’m not going to give a book review or summary here. Spending a few hours reading about the crypto market and understanding the process is essential before you invest.

The fact of the matter is, blockchain technology that supports cryptos is here to stay.  It has and will continue to make our digital lives more secure and safer.  There is a never-ending battle between those who hold our data and those who want to steal it.  Blockchain technology is giving a huge advantage to those trying to secure it.  Data breaches have become commonplace, almost daily we are reminded that putting out personal information is dangerous.  The recent scandal coming from Facebook over data breaches is just the latest in an ongoing trend.

Got to be in it to Win it!

After reading the book and my reading about cryptos for the past few months, I decided this was the time to invest.  I have made few rules for myself.

  1. Cryptocurrency investments will be limited to 5% of my portfolio.
  2. I will diversify my crypto investments into different coins or currencies.
  3. Crypto investment will be used to reach my short-terms goals and cashed out when those goals are met. The current short-term goal is $40,000 outside of IRA.  I’ll discuss that more in the upcoming trade war post.

On 3/14 I took the remainder of the large side hustle income, about $1,500, and began investing in CryptoCurrencies.  I am using Coinbase to hold them for me.

I do not intend to actively trade any of these.  Instead, I will let everything sit and see where the value goes.

Currencies purchased:
2.935207 coins of LiteCoin (LTC) for $167.85 each.  Total cost was $500 including $7.34 fee.
0.742426 coins of Ethereum (ETH) for $662.58 each.  Total cost was $500 including $7.34 fee.
0.056332 coins of BitCoin (BTC) for $8745.68 each.  Total cost was $500 including $7.34 fee.

At writing on 3/29, the prices have fallen well below and risen well above the price I paid.  Today my total is $1,077, down about $423, a little more than 27%.  Follow this investment here at my Current Holdings page.  I update this page weekly with the total investments I have in my portfolio.

The Future of Bitcoin

I will let you in on a secret right now, anyone who tells you anything different is speculating or lying.  No one knows what is in store for Bitcoin.  The CEO of Twitter suggested it will be the world’s only currency by 2028.  We heard similar predictions about the EURO when it began, it didn’t happen then.  Some analysts have predicted it will rise to $60,000 by the end of the year.  Others have predicted a crash to $1,000.  Some might be right, sometimes.  Much like the stock market, no one is right all the time.

Analysis, traders, investors, and people are all wrong sometimes.  The market is perfect and the market is always right.  The market will determine the future of Bitcoin and the market is always right.  As a small portion of a well-diversified portfolio, cryptocurrency is a good addition.  I would not put more than 5% of my portfolio into that market right now.  I would not have Bitcoin or any other cryptocurrencies as my only investment.

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