Bitcoin 101: Rapid Onset Money Evolution
The internet enables rapid onset evolution.
The last 10 years of the internet have taken us from blockbuster to Netflix to vlogging — now we see the final evolution of internet entertainment is video game streaming, ASMR videos & mukbangs.
The final form of money is Bitcoin.
Over the last 10 years Bitcoin has gone to the moon more times than NASA and according to analyst Willy Woo, it’s outperformed every other asset class on a ‘return on investment’ risk adjusted basis!
It’s likely to continue that trend as we head into a new US election & global economic uncertainty is on the rise.
Like arguing with your spouse about something you said last month, investing in Bitcoin is extremely volatile…the best strategy is to just be calm, don’t pay too much attention to the details and HODL for life!
Look at one extreme use case of bitcoin: an alternative money to failing government controlled fiat systems.
Protests in Hong Kong are coming in on 6 months. When look at the last 6 months of usage data in Hong Kong for bitcoin, you see HK residents start to withdraw money from banks & they start using bitcoin more.
Another edge case usage of bitcoin: There’s TRILLIONS of dollars worth of value in the global economy that is stashed away to hide from government overreach.
As privacy-minded wealthier folks start discovering & using bitcoin to protect themselves, it will increase demand for bitcoin — and since the supply is fixed (only ever going to be 21 million bitcoin) that helps to increase the value of Bitcoin.
That’s all well & good but your family probably doesn’t have have millions of dollars to be confiscated by corrupt governments, and you probably aren’t out protesting right now, so lets look at more relatable use case that applies to the average person: Savings & Investment
The stock market is a total of about $75 Trillion.
Global real estate is a total of about $200 Trillion.
Bitcoin is barely over $100 Billion marketcap right now, compared to the rest of the global asset classes, Bitcoin is Donald Trump’s hands — tiny.
If Bitcoin succeeds at becoming “the internet of money” then it has a good chance of rising in value 50–100X its current value.
If Bitcoin does a 50X growth to $500,000 per Bitcoin over the next 10 years, that’s still only a total value of ~10 Trillion.
For a relative comparison, that’s only slightly bigger than Gold’s marketcap, or slightly smaller than Donald Trump’s ego — uuuuuuuge.
For the average person in debt up to their eyeballs, you might think you don’t have time to think about investing.
Well, many of us think this Bitcoin thing is still a once in a lifetime opportunity to make life-changing value for your family.
Tom Lee from Fundstrat gave a great speech recently where he compared the generational investment opportunities to make life changing money.
You can watch the video here: https://www.youtube.com/watch?v=UXntK5qVhvo
$100 invested in bitcoin and held for 10 years could turn into $10,000. It’s far from a guaranteed outcome, as there is still a chance bitcoin can completely fail and go to zero — but it’s not impossible.
Bitcoin first came online in 2009. The best thing about Bitcoin is that it can’t get fired for something it tweeted back then.
The risk is high, but I will argue that keeping all of your retirement savings exposed to the stock market is actually riskier.
Start paying attention, get yourself $50 worth of Bitcoin to start!
If you can’t handle the volatility, don’t put too much of your money into Bitcoin.
If you are in Canada, you can get Bitcoin at BullBitcoin.com
If you are in USA, you can use Cash.app
(Soon you’ll also be able to invest in Bitcoin via your TFSA in Canada through the 3iq bitcoin fund!)
General rule: shoot for 5% of your net worth in bitcoin, preferably held with your own hardware wallet — do not leave it on an exchange. Slowly buy monthly no matter what the price is, and hold on to it for 3–4 years at least.
If bitcoin goes to zero, you lost 5% of your money … that’s not going to hurt right? That’ll hurt as much as buying popcorn as the movie theater. If Bitcoin does a 100%, that’s life changing.
It’s all about risk/reward!
