Is Bitcoin really a success?
I never thought I would write this story but why the hell not.
I own cryptocurrency.
Back in late 2013 someone mentioned “Bitcoin" me. I had never heard of it before so I did a bit of googling. “Blockchain” wasn’t really mentioned a lot back then but it was pitched as a digital currency and I spent about 2 months watching and researching it in my lunchtime.
Bear in mind this was pre children and I was pretty bored at work at the time. I was so bored that I actually bought 1 bitcoin for about $100 just to understand what it was as I had an inkling that I would be asked about it sometime in the future. That has certainly true!
It was so hilarious back then that I actually bought it from some bloke on ebay. Bitcoin Mining was all the rage at the time but I didn’t have time for any of that nonsense so hit Ebay.
I remember tracking it for a year or so and it just kept going up and then it crashed! I seem to remember that one of the big exchanges - Silk Road I think it was called went missing overnight and might have been something to with dodgy money.
In all honesty, I got married, the kids came and I just lost interest and inclination for following it. I got a bit bored by it and all the hype it came with despite it rising.
Until last year, I didn’t associate a value with it and then it went mental.
I think it hit around $18,000 dollars.
Wow, what do I do now?
This is where it got really interesting.
I had 1 bitcoin.
I have read these articles about people becoming Zillionaires overnight from Bitcoin.
In all honesty, I couldn’t think of anything worse than this and you may laugh at that statement but hear me out.
I was a little stressed about my 1 Bitcoin and here are some of the questions that started to enter my mind:
“When do I sell?”
“How do I sell? “
“Will someone con me out of this new found wealth?” - as it is an unregulated market
“What are the tax implications of me selling?” - I presume I would have suffered Capital Gains Tax
“Will I regret selling at a low point” - No one really knows what this thing can go to
I am a financial adviser by trade.
I oversee hundreds of millions of client assets and yet I was asking these questions.
We may say congratulations to those that have made their fortune this was but I don’t wish to be in their position as the decisions they now have to make could have huge implications in every aspect of life.
And then there was this
Imagine losing nearly 40% of your new found wealth in a month. We thought the Recession was bad.
This is the tagline for those that should Hold during the crashes and stay firm.
I get it, the new “crypto experts” that have popped up love it. They love to entice people with the thought of buying Lamborghini's, and some are even now charging for this advice.
The sharks are really starting to circle with this and some are even setting up “unregulated funds” in this free for all space.
By unregulated, I mean if it all goes tits up you have no one to blame but yourself and they walk away with money regardless. This is a shark's perfect scenario.
Let’s be honest, this is pure gambling or speculation.
Some that say this is calculated may have a point but if you are investing money into this, it needs to be money you can afford to lose.
What if it is a success?
You may laugh at this point, but I am more worried about those that think they have found new found wealth.
Can they answer those questions that started to pop into my mind above. Can they handle huge fluctuations that could affect your financial and mental wellbeing.
Some may think that money is the be all and end all - if this is you then I am sorry you are a fool and you will learn the hard way. Don’t be a fool, no one likes that person.
If you are thinking of Bitcoin as an investment
Don’t look at it as an investment.
It is a gamble.
It is a gamble I made at $100 in late 2013 but would I make that gamble now? 100% not!
Sleeping is hard enough with two toddlers without this nonsense. I prefer to make my money the old fashioned way - hard work.
I made the gamble expecting to lose my $100 and on the current price if I bought one bitcoin it would cost me nearly $12,000 to make that gamble. These are not good numbers to gamble with.
And well done to all those new zillionaires. You made it or did you?
Be careful what you wish for - I have put a classic video to sum up your position now: