5 Ways Investing In Bitcoin Will Radically Change Your Life
Bitcoin is more than an expensive digital currency — it’s an idea that will forever change your approach towards money
Back in 2020, I invested in Bitcoin right before the pandemic struck and rearranged life as I knew it.
And if you know anything about Bitcoin, it did really well for itself.
In fact, Bitcoin did so well, it became the best performing asset of 2020. The little-crypto-that-could managed to outpace the gains of the much-loved stock market, and even gold and crude oil. Bitcoin’s meteoric rise in value has forced the world to reconsider the true power of cryptocurrency. It’s no longer a weird digital plaything for silicon valley nerds.
Love it or hate it, Bitcoin is here to stay.
When I invested in this revolutionary technology, I had no idea what could happen next. I simply saw an opportunity to make some easy money while supporting cool technology.
And that was the problem — I saw it as a mere cash grab. Like many people, I treated Bitcoin like a meme stock. The obsession with dreams of fast money blinded me to what I was truly investing in.
Cryptocurrency is more than just virtual money — it’s financial self-help.
Here are some of the things I would soon learn as I jumped down the Bitcoin rabbit hole and made my descent into the world of Crypto.
Know What You’re Investing In
When I first started investing in Bitcoin, I was chasing the dream of a Return On Investment. I didn’t bother to research it was, why it’s important, and how it may or may not backfire. I just knew that it had incredible hype, and word of mouth from friends of mine, and that was enough to convince me to throw money at it.
In retrospect, that was not the smartest approach to investment. Doing your personal due diligence and verifying your investing goals are too important to ignore. Especially when it comes to a new, and still somewhat unproven, technology, it’s incredibly important to do your homework and know what you’re getting into.
So yeah, instead of treating it like a major business decision, I basically gambled a chunk of my savings. Ironically, I actually ended up coming on top and winning a positive return. But looking back on it, it doesn’t change how reckless my decision was.
Here’s a quick and easy rundown of what Bitcoin is:
- A digital currency
- An excellent hedge against inflation — and numerous other factors.
- A financial system that allows you to cut out the middlemen — the banks.
That’s an oversimplified explanation, but that’s the gist of it.
Bitcoin Will Force You To Think For Yourself
There’s a lot of crypto believers out there, but it’s hard to tell who you should listen to. Visit any Reddit, Twitter, Facebook page, or any social media revolving around Bitcoin, and it quickly devolves into a cult.
No. Seriously check out the Bitcoin-related subreddit and you will see how quickly it devolves. While you can find genuine analysis and information, it can be difficult to sort out who’s being authentic and who’s misusing the information to reaffirm their own viewpoint.
Groupthink is real, and it’s extremely distracting. It can lead to massive confirmation bias as everyone is basically reaffirming the same beliefs instead of hearing out new perspectives. The erosion of critical thinking can result in a hive mentality.
At the end of the day, everyone wants the same thing — to see their investment succeed. Any thought that runs contrary to this end-goal is unofficially branded the enemy, by many Bitcoin investors.
Do the research yourself and maintain a level head. Don’t fall prey to one absolute viewpoint. Seek out the answers yourself and reaffirm your confidence in what you’re investing in.
You Will Become Obsessed With The Word “Inflation”
Everybody loves cash money. There’s a reason why a legendary rap group immortalized the acronym C.R.E.A.M. — Cash Rules Everything Around Me.
However, in our chaotic modern time, cash money is becoming our worst nightmare. Life is more expensive than it has ever been, and we never seem to have enough cash to compensate. The cost of living is crippling our financial dreams, and it feels like we’re in a never-ending race to make enough money to feel comfortable.
Inflation — when the price of goods goes up and the value of your money goes down — is a real pain. The decrease of our purchasing power while everything is becoming more costly is eroding a generation of people. The cost of goods and service have become incredibly high since the days of the Boomer generation. Millennials and Gen Z have had to endure multiple economic crashes and where our financial situation is becoming ever more tenuous.
And yet ironically, there is plenty of cash floating around.
As reported back in October 2020, there was an estimated 22% of all US dollars in circulation were printed. And since that time, we have had two more stimulus packages since then. Our dollars aren’t worth what they used to and they’re going to stay that way. There’s a reason why some people are claiming this is the greatest wealth transfer of all time — that’s a lot of money getting thrown around.
When big institutions invest, you pay attention because that’s where the money is heading. Bitcoin was given an even bigger boost when you have the likes of Elon Musk and mega-companies like Grayscale investing back into Bitcoin as an asset. With heavy-hitters “inflating” the price assets like stocks, it’s hard to reliably trust it. Saving accounts don’t pay like they used to, and everyone is looking for a safe place to protect their wealth.
That’s when Bitcoin introduced itself as the solution to the “inflation” problem.
Even now with the latest stimulus package from the Biden administration, people are now fearing even more inflation. Whether or not theirs fear of inflation is real or just paranoia, it’s hard to ignore the amount of fear that exists right now.
Nobody trusts the financial system anymore. Every week, we’re constantly reminded we’re in a money bubble that’s ready to break at any minute. And when that break eventually comes, we’re going to fall harder and faster than before. And it’s going to be even harder to get back up.
Too many average investors don’t have enough money while some people have way too much. And both sides are seeing Bitcoin, and cryptocurrency as a whole, as a way to protect their purchasing power in a very much inflated economy.
Bitcoin Is Forward-Thinking
Despite all of the hype, a lot of people still don’t think Bitcoin will succeed. And to be fair, I don’t blame them.
When you look past the massive monetary gains, Bitcoin is, at its core, a technology. And before it became a real technology, it was an idea. An early-stage concept inside someone’s head.
An idea to change the future of money.
Let’s be real, Bitcoin can still fail. It’s not impossible, and crazier things have happened before. Bitcoin’s “perceived” value is exceptionally high right now, but that perception can always change. Ultimately, you’re doing more than just trying to make money — you’re betting on a brand new form of technology to improve the entire world for generations to come.
That’s insanely ambitious.
Bitcoin doesn’t live in the present — it’s goals are far into the future. When you’re given dollars, your first thought is “how do I spend it right now?” However, when you invest in Bitcoin, your options are much greater — and as a result, with greater access to wealth-building.
When you’re looking that far into the future, it’s easy to have second thoughts and stick with what you know.
Holding Bitcoin Is Anxiety Inducing
How much money is enough money?
That’s a question I kept asking myself as I watched the price of Bitcoin skyrocket. It makes you realize the existential problem with money — there is never enough of it. And even when I’m looking at ridiculously positive gains, it soon became normal. Eventually, I would get greedy. And other greedy thoughts would enter my mind.
“I should hold just a bit longer. I can make an extra $2,000? $5,000 more? Maybe I should just hold it forever and become so rich I never have to work again!”
However, on the flip side, what if I wake up one day, and all that value goes back to where it started. Just like that, all of that money made gone overnight.
Bitcoin is infamous for its volatility, and for people that need the money, it’s a dream and a nightmare to hold. You don’t want to sell it because you may miss out on thousands of dollars…but you’re forced to lock away vast amounts of money on the promise that more money could be made later. If it all goes well.
It’s human greed at its finest.
In the end, I accomplished what I set out to do, and that made enough money to pay off my substantial debts. I became debt-free, reinvested a portion of it, and walked away.
While I still hold investments in other cryptos (I’m particularly fond of Ethereum these days), I now invest much more cautiously with greater respect for the ambition behind it.
When you invest in Bitcoin, you invest in something bigger than yourself. It’s more than just making money and getting rich quickly. You’re contributing to what may be the next step of financial evolution. A technology, an idea so powerful that it forced the entire world to take notice.
Bitcoin is more than just dollar signs. It’s a grand bet on the future.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.