Back in late 2017, it was up to $18,000 per bitcoin. Everyone in the universe was talking about it.
Then it crashed to under $3000. There, it has languished for about a year and a half. Everyone stopped talking about it. People said it sucked and no one was interested.
And then, seemingly without warning, a few weeks ago it spiked up to over $8,000. And now, of course, everyone is talking about it again, getting excited. Again.
Is bitcoin back? I don’t know. Maybe it is, and we’re now in for a wild ride as bitcoin skyrockets to $50,000 or more as the bitcoin bugs have been saying all along. Or, this is just a temporary spike because some Russian billionaire is jacking up the price temporarily so he can get his money out of the country before the bitcoin price crashes yet again.
As always, there is no way to know. But I can tell you how I’m handling it.
As I’ve talked about on this blog before, I already made my money in bitcoin. I bought bitcoin at around $1800 several years ago and sold in late 2017 when it was around $16,000. Also, around August of that year, the Bitcoin Cash fork occurred right in the middle of Bitcoin’s rise while I had it, which means thousands upon thousands of dollars suddenly appeared in my hands out of nowhere as a mountain of Bitcoin Cash appeared in my cryptowallet. Most of this I sold when Bitcoin was at its near-heights at the end of the year.
So, as far as I’m concerned, I already made my Bitcoin money. I cashed out quite a while ago.
I knew that it was certainly possible that the Bitcoin nerds who kept screaming about a $50,000 or $100,000 Bitcoin some time in the next few years could be right. So I took out the vast majority of my Bitcoin, Bitcoin Cash, and Ethereum profits, but I left a little in each of those cryptos, just in case something amazing happened.
Nothing amazing happened, of course. All three of those crashed shortly after and have been horrible for the last year and a half. But now, all three have been rising, Bitcoin most of all. So I’ve had some nice returns in the last few months (when in 2018 they pretty much did nothing).
Going forward, I’m going to simply repeat that formula. If Bitcoin and the other cryptos suddenly go to zero and I lose all of my money, I don’t care, since the money I invested was part of the freebie profits I got back in 2017. My money was already made.
If they skyrocket in value again, and I think they probably will eventually, I’ll sell off 70-80% of the profits at some point, pocket my profit (again), and leave the remaining 20-30% in there, just in case it takes off a third time.
This is what I recommend you do if you have an interest in this sector. What I think is really funny is guys who asked me in early 2018, “Is it too late to get into Bitcoin?” and who did nothing back then but who are now getting excited about Bitcoin (again) now that it’s back around $9,000.
It’s what humans always do. You’re supposed to buy low and sell high, but most people do the exact opposite and have for literally hundreds of years. Early 2018, when Bitcoin was in the shitter and everyone was complaining about it, that was the time to buy. If you had bought it then and sold now, you would have quadrupled your money, which is exactly what’s happened to the amount of Bitcoin I left in after my selloff in late 2017.
When an investment crashes and everyone hates it, that’s usually the time to get in on it. When it’s skyrocketing and people on mainstream media are all talking about it, that’s usually the time to sell, not to buy.
So all the guys asking me if it was “too late to get into Bitcoin” in early to mid 2018 had the exact wrong idea about the basic laws of investing (or should I say, speculating). Buy what is terrible and what everyone hates, then sell it when everyone loves it. Be a contrarian. I’ve made a lot of money investing over the years by doing exactly this. Bitcoin and crypto are no different.
What You Should Do
So I’ll now answer the question so many of you have asked me about Bitcoin; whether or not to get some now.
What’s going to happen to Bitcoin three or five or ten years from now? Again, I don’t know, and as always, anyone who says they do is either lying, insane, or trying to sell you something.
Here’s my guess as to what will happen with Bitcoin. Again, this is just a guess. Bitcoin will be a roller coaster of ups and downs as it’s manipulated by international billionaires and crypto-nerds. At some point, yeah, I think it will spike way up to something amazing. I have no idea what that will or would be, but numbers like $25,000 or $50,000 per Bitcoin aren’t impossible. Then I think it will drop to zero or close to it as some new and more robust cryptocurrency replaces it, just like MySpace was king until Facebook suddenly kicked its ass from seemingly out of nowhere.
This means that, yes, you should buy a little Bitcoin right now if you don’t have any. In terms of how much, I’ll examine that in a minute. But in terms of whether or not to get some Bitcoin, yes, get some.
Just remember this is a speculation and not an investment, so you could lose literally everything you invest into Bitcoin (or Bitcoin Cash, or Ethereum, or Litecoin, or any other crypto). This means you don’t want to invest any money into Bitcoin you can’t afford to lose.
Moreover, if you’re following Alpha Male 2.0 financial structures, you shouldn’t invest into anything like Bitcoin if you have a bunch of debt and/or if you don’t have a strong emergency savings account. Men with major debt and/or zero to little savings should not be investing in anything, much less fuckin’ Bitcoin. Pay off your debt and get your emergency savings up to a decent level, then you can play around with investments and speculations.
For those of you who have little/zero debt and have decent savings, then I think it would be a good idea to place some money in Bitcoin as a percentage of your Get Rich Bucket where you speculate. (Do not use any money from your Never Touch It Never Lose It Bucket to purchase bitcoin; that’s insane; again, you could lose it all.)
Under those very conservative structures, I think owning a little Bitcoin is a really good idea. If you lose your little amount, fine, win some and lose some. But if Bitcoin really does go to something insane like $50,000 or more, which I honestly think is something that is not improbable, you’ll be a happy bastard.
On a more general note, when I spoke with Jim Rogers at last year’s Freedomfest, he said that all cryptos will eventually go to zero but blockchain technology will become ubiquitous and will transform the entire world. I think that’s probably an accurate prediction. I just happen to think that crypto will spike up into the stratosphere before it goes to “zero.”
This also means, if that prediction is accurate, that you smart entrepreneurs out there who get involved with anything having to do with blockchain technology are in a fantastic growth industry that’s likely poised to go crazy within the next ten years (or less).
Food for thought regarding in which industry you should start your next Alpha 2.0 business…
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