If you invested $100 in 2010, it would be worth over $70M today.
Have you heard a variation of this line before? Unfortunately, it’s all true.
For months now every time I saw a headline, book, or documentary on BitCoin, I felt the pains.
What pains am I talking about? You know.
It’s the FOMO (Fear Of Missing Out) pain coupled with the I-could-be-rich-by-now pain.
And boy, does that hurt.
Do you realize how many dumb things I’ve spent $100 on in the last eight years? Things that are all long gone and or have negative value now.
The pain really got to me because for over five years, I’ve been a business instructor telling people about BitCoin. I’ve given lengthy, detailed lectures on BitCoin and block chain technology for years. In one investment course, I even showed Milton Friedman’s video of him predicting BitCoin in 1999 — and that we should all heed his words.
Yet I was never an investor.
I was skeptical about it, but saw the potential in BitCoin nonetheless. The whole idea of the democratization of currency appealed to me, like so many others. I thought about how empowering it would be for people in poorer countries to finally have a stake in the world economy.
The fact that banks were being cut out of the picture so that fees and Wall Street corruption would be minimized really got my attention.
BitCoin is a revolutionary idea and the greatest disruption to the economy’s recent history. Whether it goes bust or not, people will be talking about it for centuries.
And what kills me is I feel like I missed the boat on investing in it.
The higher the BitCoin stock goes, the deeper the pain.
I t really kills me that I’m a well-versed stock trader. In fact, during a career transition, I took a mini-retirement and practiced swing trading for two years. I pretty much traded an hour or two a day and then went about my open agenda.
Most days, were mellow, but a few of them had my stomach in knots. Trading can take a toll on you because it’s so unpredictable.
I remember making tens of thousands of dollars on stocks like Amazon and Netflix. Then in the next weeks, I remember practically losing my shirt from pharmaceutical stocks that evaporated in days (VRX).
After two years, I had enough. I called it quits and did what any normal value investor would do: dump most of my money into a diversified set of Vanguard index funds and let it ride.
I’ve been happier ever since . . . except when this BitCoin madness started.
Missing out on BitCoin made me feel like the times I missed out on super-fast growth stocks. Except this time, I couldn’t invest because the stock price was too high. It was like admiring all the success of the Berkshire Hathaway stock had, but never being able to touch it. (BRK-A is currently trading for over $319,700 per share!)
To be honest, in the past any individual stock over $400 was too rich for my blood. I wanted to buy in volume. Plus, in swing trading you don’t have time to wait out any massive fluctuations. This limits your stock selection.
I won’t go into my top ten stock screener criteria, but let’s just say the stock price was a major component. For example, usually I traded stocks around the $50-$300 price range. Ironically, some of my biggest wins were from stocks that cost less than $10 a share.
Now that BitCoin is hovering around $11,000 a share, it’s simply out of reach for my shallow pockets. (I could invest in Bit20, a cost-effective cryptocurrency index fund, but it’s just not for me yet.)
However, unless you plan on never reading the news again we’ll all have to deal with it. Here are three ways to do just that.
01. Be Grateful You Are Alive
Nothing is good about mass suicides or even suicidal ideation. However, people that experienced BitCoin’s first major crash contemplated suicide from their massive losses. On January 16th, 2018 the Suicide Prevention post had the most visitors on the Reddit cryptocurrency niche forum. Be glad you weren’t in this bunch.
02. Turn Your Tech Awareness Into An Advantage
Now that BitCoin has awoken you from your investment slumbers, maybe now you’ll keep an eye out for disruptive technologies. Of course, most startups fail. However, getting the scoop and watching what the smart people in the space do can pay off big in the long run. Let them make the big risks and when it’s time, you can step in to dabble.
03. Invest 1% In BitCoin Now
Some say that we’re looking at a trillion-dollar BitCoin market. That could all be hype. I’m not a certified investment advisor, so don’t listen to me. However, many experts are now saying that if you want to invest in BitCoin, it’s fine to do so as long as it’s a tiny piece of your entire portfolio.
How much exactly should you invest? Some analysts say 2%. Others advisors say to invest 0%-10% depending on your age and risk tolerance. AARP says no more than 2% of your net worth, but is that enough? Well, like I opened with: a $100 investment could have netted you $70M in eight years. It’s not likely to spike like that again, but little is at stake with 1%. Let’s say you just started investing. One percent of $10,000 is just $100.
Alternatively, if you think all the BitCoin rage is over there are other crypto-currencies you can invest in for less than a dollar a share.
So try not to worry about BitCoin. And try not to stress. Read the headlines and guffaw because you now have three tricks to combat the BitCoin bug. Keep on with your value investing routine like Warren Buffet. You’ll sleep better knowing you’re slowly but surely making good money on your investments.
If you’re not part of the tiny fraction of people who have invested in BitCoin early, don’t worry:
Business opportunities are like buses, there’s always another one coming. — Sir Richard Branson
However, if you see this car drive by, let me know!
Scale Your Startup
Hi, I’m Peyton. I’m an entrepreneur and startup business consultant. I have a team whose speciality is using storytelling and digital platforms to connect companies to their tribe. The result is massive traffic and sales. Learn more at https://arliepeyton.com.
Peyton is an educator and writer who loves to help people achieve greater focus and fulfillment in their lives through story. He has worked with private clients and global brands. Peyton is based in Portland, Oregon — a magical and mysterious city enveloped by a Douglas Fir rainforest.