Some argue we are in the greatest bull market of all time. Apple, Google, Amazon, Facebook, Tesla, Netflix, and many others have seen their stock shares rise 200-300% within the last 3 years alone. But do you know what would have been better? Buying and Holding Bitcoin. 200-300% gains pale in comparison to the 2500% gains Bitcoin had within the last three years.
But what does this have to do with Newegg? What does one of the leading online retailers of computer hardware and consumer electronics in the world have to do with Bitcoin investors losing out on 2500% in profits?
To answer that, let’s go back 3 years ago. Bitcoin made headline news as everyone watched it go from a few dollars each to over $1200 each. Everyone was paying attention including retailers. Overstock was the first big retailer to jump head first into Bitcoin and that was at the beginning of 2014. It was a bold move and brought a lot of attention to Overstock. Then others followed, Dell, Expedia, Microsoft, etc… and eventually so did Newegg.
Unfortunately, 2014 was the start of Bitcoin’s downtrend. By September 4, 2014 Bitcoin’s value dropped from its high down to a bit under $500 dollars. It was a grim time for Bitcoin enthusiasts and everyone was wondering if they made a mistake. It didn’t look good for retailers as well as the number of people who paid in Bitcoin dropped dramatically.
That’s when Newegg took a bold move and released Why Saving Your Bitcoin is Not a Good Idea on their blog. Ivan Barajas, who is the author of the article, laid out a very good intro to Bitcoin. He explained why Bitcoin is great and isn’t only used by bad people or for bad things. He then explained why consumers loved using Bitcoin to pay for things. So far so good. Then the article really took a turn for the worse.
Ivan said that unfortunately many Bitcoin holders, aka investors, are “hoarding the cryptocurrency as an investment” and that it was bad. In other words buying and holding Bitcoin is a bad idea.
Why? Ivan went on and defended his stance by saying Bitcoin can become worthless overnight and that if everyone spends all of their Bitcoins, it’ll help Bitcoin’s future.
Ivan isn’t wrong. Both things are true. Bitcoin can become worthless overnight (very slim chance) and people that actively use Bitcoin does help drive market adoption and usage. If Ivan’s point was to simply to advise people to be careful about buying and holding Bitcoin since it’s volatile, great.
Unfortunately, if you continue reading, you will see that is not Ivan’s point.
“Bitcoin community is at risk of losing everything,” Ivan said boldly. And the post’s hook, line and sinker is to share that Newegg now accepts Bitcoin as a form of payment! Ivan and Newegg want everyone to know that even though they believe in Bitcoin, they believe in everyone spending all of their Bitcoin at Newegg more.
Ivan’s last line also didn’ make any sense. “But if you’ve been saving it and hoping it will make you rich one day, your better off spending it if you want it to succeed.” Is he saying that everyone should sacrifice their dreams of becoming wealthy so that future generations will reap the benefits of Bitcoin?
Shortly afterward, Ivan and Newegg probably looked like geniuses. Because in a few months, Bitcoin’s value dropped from the $486.99 Ivan reported down to the $200s. But since then it has trended upward until now where it is $5,700 dollars.
Ivan/Newegg’s advice cost Bitcoin investors 2500% in profits. Maybe Bitcoin is where it is now because everyone exchanged their Bitcoin for Newegg products? And that’s why future generations (that’s us) is now reaping the rewards! In case you can’t tell with the exclamation mark, I’m being facetious.
To be completely fair, I’m sure the blog post wasn’t just Ivan’s idea. I’m pretty sure Newegg had a big hand in it. And of course, hindsight is 20/20.
Like I said above, if the post was more about advising people that buying and holding Bitcoin as an investment requires caution, there wouldn’t be any harsh criticism coming from me or from the people that listened. Unfortunately, the blog post was meant to manipulate people into spending Bitcoin at Newegg. Shame on them.
What’s the listen to be learned? Do your own homework and make your own judgment calls. People three years ago that researched and saw the potential of Bitcoin, held on and made an insane amount of money. Those who simply listened to the naysayers of the world and manipulators like Newegg, probably sold and it cost them 2500% in profits.
The question then remains, Is it too late to invest in Bitcoin? Thinking it’s too late to get into Bitcoin is like thinking it’s too late to get into the Internet in the 90s. We’ve barely scratched the surface at this point. Don’t miss out on the next 2500% gain.
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