I want to address this question as people ask me everyday, should I be investing in Bitcoin? And my answer to people is always, “well why you would invest in Bitcoin?” And I don’t mean this sarcastically – I really just want to know. I want to know, “what’s your strategy?” “What are you hoping to accomplish?” and more often than not you know what I get is people can’t even tell me why they would invest. I’ll ask them to explain Bitcoin to me, “how does it work?” And people are clueless. I’ll say, “so why do you want to invest in this” and people will tell me “well it’s because it’s making money right now” and so I always circle right back around – are you going to invest as an amateur or are you going to invest as a professional?
You see, professionals do their research; they take the time to understand what’s happening. They listen to the advice of others who have a proven track record of success and they don’t buy based on market sentiment. And I feel like that’s what’s happening with Bitcoin right now. You have to understand that bitcoin is a commodity. I understand blockchain and I understand the technology piece. I understand that people think it’s going to replace currency the way that we have it today – who knows maybe it will. But as of right now, it’s still a very unregulated commodity. And I would just caution you guys if you’re going to invest in Bitcoin, cool God bless America!
Do what you got to do. But take the time to do your research, to understand what leads to market crashes and what the trends are historically that have caused people to lose money. Go back and look – I mean you can go back as far as the 1600s but if you go back and look over the past thirty years even, 1987 we had a crash. Why? People buying exotic style securities that they didn’t really understand. The securities were overvalued; a lot of people lost a lot of money, some people made a lot.
Look in 1997 what happened in Asia in Japan. Same story, people didn’t understand what was happening with their economy, Japan’s economy was on the rise, people get super excited…a lot of people lost a lot of money but a few people made a lot. The dot-com bubble, same story. Look at 2007-2008 same exact story.
So what I would caution you guys with – there’s professionals out there that are gonna make a ton of money with this whole cryptocurrency thing. But the majority of people who are just buying in because it’s the cool thing – what they’re going do is they’re going to be the ones to bear the brunt when the market goes down. And I don’t care what anyone tells you – all the people talking about how amazing cryptocurrency is and all the money they’re making, good that’s awesome. But there has never once in the history of mankind been an investment product that didn’t have both ups and downs.
We haven’t really seen a lot of the downs, we’ve seen some of the volatility, but Bitcoin has still been on the rise. What I would really caution you to look at is Bitcoin doesn’t derive its value from anything other than the way people feel about it. So if people stop loving Bitcoin, what happens to the value? And if the value is no longer there, guess what’s going to happen the money you’ve invested. So take some time do your research. Hopefully this helps. I’m excited to see what happens we won’t find out until the future comes around. I’ll talk to you guys a little bit later have a good one!
