No.
I'm not likening the great Warren Buffay' to an old bull.
Nor am I actually claiming to be a savvier investor then the legend (are you kidding?)
BUT...I did get this one right (most likely by sheer luck)
I wrote this email back in October of 2020 (the 8th to be clear).
At the time I was a big bitcoin bull. I became super interested in the revolutionary asset class back in February of 2020. I loved what it stood for, what it could do, and the fact that it felt a little rebellious.
I bought all my bitcoin between March 2020 & July 2020...where the price fluctuated (an understatement) around $5,000 - $10,0000.
As a contrarian, I'm highly skeptical of things that blow up. So, as the year went on...and as bitcoin continued to soar....I started getting a bad feeling.
Well...fast forward and bitcoin is priced north of $50,000 (on the day of writing this) and it's all anyone can talk about on business t.v. shows. Your mailman asks you about it, your boss, the guy on the train, and your drunk uncle Sam even brought it up at Xmas dinner.
To sum it up...bitcoin has become a part of pop culture...and I tend to avoid popular investments. But I did get this one right back in October...even though I'm bearish on it at the moment....
Case in point = when your drunk uncle Sam is talking about it...it's a bubble.
Anyways...I sold half the bitcoin I owned and am prepared to sell whatever I got left before the party ends...because...you don't wanna be the last one to leave the party...why?
Because the last one to leave the party gets stuck holding the bag....that the really drunk girl is now throwing up in.
Okay. Rant over. Read the email. It's about bitcoin.
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Subject Line: Too “High Tech” of an investment for normal people?
My next door neighbor’s name is Joe and let me tell you how “normal” of a guy he is.
Joe walks his dog every morning before work. After he gets home from work he cooks dinner for his family and watches sports. On the weekends Joe likes to go out with his family (don’t ask me how I know so much about Joe).
I guess the one not normal thing about Joe is that he drives a Tesla.
In my opinion, Tesla’s are high tech. And in my opinion, Joe is normal.
But when I ask Joe if he’d ever invest in bitcoin he tells me, “No no no- I don’t understand it, it’s too high tech”.
This is a widely held belief and I’d like to put an end to it if that’s okay with you.
Buckle up.
Q1 - “How is it worth anything if you can’t physically hold it?”
A1 - Let me ask you a question.
If you went to your bank right now and asked the teller to withdraw your entire checking and savings account what do you think would happen?
I’ll tell you.
The teller might laugh and ask you what you really wanted.
Of course if you only have a couple hundred or a couple thousand in there you might be able to withdraw it all.
But in reality the banks don’t store all your money in nice little cubbies. The number you see on your banking app is just that...an electronic number. A credit. A halfway intangible amount.
Stocks are the same.
An electronic representation of fractional ownership in a company that can be bought, sold, or traded.
Bitcoin is just that > an electronic asset that can be bought, sold, or traded.
Q2 - “How do I know it’s safe?”
A2 - Like all assets, nothing is ever 100% safe.
But bitcoin can be stored in hardware “wallets”.
These wallets store your bitcoin and protect against theft.
You can keep your bitcoin online in “hot” wallets.
Or buy your own and store it outside in a “cold” wallet.
You can snatch one up for less than $100.
Think of it like the monthly maintenance fee you pay to your bank.
There are different kinds of hardware wallets you can buy too.
But I’ll go over that in another email.
Q3 - “How can I afford a whole bitcoin when it’s so expensive?”
A3 - I can’t help ya there...kidding.
Bitcoin is revolutionary in the way it can be bought.
Fractional “shares” or “parts” can easily be bought and sold. The smallest denomination you’re able to buy is called (stick with me here) a “Satoshi”.
1 Satoshi is equal to 0.00000001 of 1 bitcoin.
So say 1 bitcoin is selling at $10,000 right now.
And you wanted to buy 1 Satoshi.
It would cost you less than $1…($10,000 X 0.0000001)
That’s a wee bit more affordable ain’t it?
Just to make this a little easier to understand let’s say you wanted to buy $5,000 worth of bitcoin (Remember, 1 bitcoin is worth $10,000).
You’d be given 0.5 of a bitcoin that is worth $5,000.
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As I hope you can see, bitcoin isn’t as “high tech” as my neighbor Joe would have you believe.
It’s a modern asset class that favors the future and it ISN'T the black market tool that CNBC wants you to think it is.
But it is currently doing something that’s challenging 2 “high tech” stocks that are talked about on CNBC.
And it’s turning heads because of it.
If you’re still skeptical of bitcoin, then you’ll be shocked at how it's competing against two of Wall Street's biggest sweet hearts.
This one metric shows the legitimacy of bitcoin and how it’s become the best performing asset class of the last decade.
And why it’s not too late to buy.
You can check out why here..
>>> The two companies bitcoin has passed in market capitalization
You’re probably a customer of at least one of them.
Let me know any objections you have with bitcoin and crypto...I’d be happy to answer.
Talk soon.
{First name} “Knows his neighbor a little too well” {Last name}
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