Is Bitcoin dead, dormant, or just waiting to dominate?
One way, or another, it’s going to get us. We’ll either be suckered in and made a fool of, or we’ll be living large in the new world.
5 years ago, I thought, in 10 years time, I may possibly know if buying a bit of this coin was a good idea or not. I can’t say I believe for certain, that Bitcoin, or any other digital asset for that matter, will be a one way ticket to unbelievable riches. At least not yet. I can say though, I was on track about the 10 year part. Increasingly, I’m of the view that apart from owning property and getting some sort of traditional investment portfolio (KiwiSaver) set up, you’d do well to consider a small allocation to Bitcoin.
Call it insurance, a speculative play, or a call option on the future. Either way, coming from a skeptic, take a closer look like I ended up doing – if you devoted 1% of your overall portfolio to Bitcoin, you may get better returns, with lower volatility.
Back to my story, shortly after I bought a sliver of a Bitcoin, the price crashed. I lost around 75% of the value within 12 months. It was a great test for me, because I thought I had a high risk tolerance, but you never really know until you watch something you just paid retail for, go on sale. Still, after a couple years hodling on, it made up the losses, and hit all time highs. Over just 5 years, my allocation to bitcoin outperformed everything else I owned. I could afford to take a risk a few years back, and I’m glad I did (of course!), but I did feel like a fool at the time.
I say all that to make it clear I’m biased around this asset class. It’s hard not to be after you spend a bit of time understanding this for what it is, not what we think it is. Having said that, this is a high-risk investment and please don’t be influenced, just based on my views. Do your own research here.
So what do you think though, do you hear Yanny, or Laurel? Is Bitcoin a scam, or could it be legit?
In this podcast recording I caught up with Janine Grainger, who’s the co-founder of Easy Crypto*, a fiat ‘on-ramp’ or digital asset supermarket, where you can access up to 160 crypto-assets. This Kiwi initiated business now operates Australia, Brazil, and South Africa too. Hope you enjoy!
For further reading:
https://forkast.news/china-banned-bitcoin-mining-became-no-2-bitcoin-miner/
https://www.statista.com/statistics/267998/countries-with-the-largest-gold-reserves/
https://www.npr.org/2022/06/17/1105896419/russia-putin-speech-sanctions
https://news.bitcoin.com/targeting-the-us-dollars-hegemony-russia-china-and-brics-nations-plan-to-craft-a-new-international-reserve-currency/
If I can be of assistance in providing qualified financial advice around Bitcoin within a traditional portfolio, please reach out and book a time to chat here.
