Why I (a 60 year old guy) am investing 25% of my net worth in bitcoin. There are more than a couple of reasons. I see that it is in its infancy as a currency, or a way to store value. I think that when you can get in on the ground floor of something as exciting as this technology, it has a good chance of being a huge thing.
I am an early technology adapter. I was playing around on the internet in its infancy. I began to write and code web pages in the late ‘90’s. The browser was called Mosaic (later to become Netscape Navigator).
Before Google, and SEO as we know it, I was optimizing my web sites for popularity. By linking similar websites, and asking for reciprocal links.
That was then. We’ve come a long way. Recently I began to look into Bitcoin. I’ve had Don and Alex Tapscotts book “Blockchain Revolution” on my Kindle for years.( http://amzn.to/2wgPUlM ) Unread until recently. But then I began noticing this technology here and there, in mainstream news. It is how the bad guys who transmit ransomware require to be rewarded so that you can use the computer again. Mt. Gox stories. Who is Satoshi Nakamoto?, Bitcoin Mining, Crypto Currency trading, and other stories.
It seemed interesting. So much so that I delved deep into learning about the technology, and related blockchain sciences. You can’t believe the depth of the Rabbit Hole, once you immerse yourself into learning this stuff.
So after months of meetings, and group discussions and hundreds of YouTube videos, I am convinced that this is the way of the future and I am so confident that I’m willing to risk a quarter of my life savings.
I’m in sales. I have made my living selling to people and businesses. For most of my adult life, I have been self employed. I don’t know everything, or even most things, but I do know some things. One important thing I have learned is the law of supply and demand. It is why people buy things. Anything. Houses, guitars, cars, and…Bitcoin. It is why prices go up.
Did you know that Bitcoin is $4600 right now, for one Bitcoin? It was 8 cents in 2010! Talk about inflation.
Supply and Demand? There will only ever be 21,000,000 Bitcoins produced. In the whole world. Ever. And they will start to get scarce. There are already 16.5 million out there. And it will take 123 more YEARS to produce the last 4.5 million of them, through mining. See where the scarcity is coming in? As regular folks see that there may be some upside to investing here, they will start to pile in and buy as investments (herd mentality, and FOMO (fear of missing out)). There simply aren’t enough Bitcoins to go around. People want what they can’t have. That’s why certain things cost a lot.
Bitcoins will become rare, and now is the time to buy. For me. Maybe not for you. I am not an investment advisor, nor do I have anything to gain or lose if you decide to buy bitcoin or not. But I have made a few good guesses in my life so far. Let’s see what the future brings…and be careful down that rabbit hole!