What if I told you that it was possible to invest your hard-earned wealth in an asset that was well on its way to becoming universally recognized as the most desirable money humankind has ever seen? You would probably want to get some, right?
In today’s world, governments create fiat money out of thin air, not associated with productivity, and it mostly finds its way into the hands of relatively few. The current system has caused imbalances throughout time, leading to much suffering and strife.
Bitcoin’s rise to relevance will continue to usher in advancements in human prosperity and productivity. For the first time in history, we can hold our time and energy in an asset that neither stable nor corrupt governments and central banks can debase. Bitcoin will enable countless people to escape oppressive currency controls and facilitate authentic free markets based on productivity.
Before the world catches on
Bitcoin will change age-old dynamics in ways that are sure to bring humanity forward. Investing in it, or more accurately, buying some now would be to front-run 99% of the world before this realization becomes a reality. Think of it as if you’d purchased some gold with seashells, while everyone was using shells as money.
There is a world in the not too distant future where individuals, cities, states and even countries settle their debts and get compensation for goods and services rendered, with one non-political, secure and global money. Ideally, you would want to have some before the rest of the world catches on.
Today you can still buy a meaningful amount of Bitcoin with an average person’s working wage. There will only ever be 21 million Bitcoin. With 8 billion people on the planet, that is .002625 Bitcoin (or 262,500 Sats) per person. Today about $100 will buy you that. A satoshi, or “Sat”, is the smallest unit of a Bitcoin. (100,000,000 Sats = one Bitcoin). You can buy fractions of a Bitcoin. A seemingly small amount, if accumulated upon, will likely be a small fortune in the coming decades. Steady accumulation is key. Changing your time preference will help. Saving for your future is now possible, independent of what the money printing governments of the world do.
We are still early into Bitcoin’s global adoption, but you may not want to wait any longer. Ernest Hemingway once wrote about bankruptcy, “It happens in two ways. Gradually, then suddenly”. The world seems to be waking up to Bitcoin’s benefits in such a fashion.
In the future, people like you, who get in early, will exchange their Bitcoin for valuable goods and services, thus enriching other productive people and continuing the virtuous exchange of this near-perfect sound money.
Considerations for investing in Bitcoin
Many factors will come into play when deciding how much you should invest in Bitcoin. It is essential to look at what you are trying to achieve by investing in the first place. What are your particular goals for wanting to invest, or invest in Bitcoin, specifically?
Traditionally recognized reasons for investing
- Saving for your future self, family, or generations to come
- Growing your wealth
- Protection against inflation
- Having exposure to diversified assets
You are investing in Bitcoin assuming that you buy and hold for the long term and offer all of the above benefits and more.
Additional advantages of preserving a portion of your wealth in Bitcoin
- Ability to self-custody Bitcoin (hold it yourself).
- Assurance that it will never be debased due to Bitcoin’s fixed supply of 21 million. Your share of the pie stays the same for as long as you own it.
- Usefulness as a hedge against inflation and irresponsible government/central bank practices.
- Ability to send Bitcoin to anyone worldwide, cheaply, in minutes.
- Settlement assurance. When you send a Bitcoin transaction, it is final and can’t be censored.
- Gaining exposure to the leader in a new asset class, cryptocurrencies.
Investing in Bitcoin is an excellent way of preserving one’s capital for the long term. Many people today believe that it’s the preferred savings tool in a modern-day investment portfolio. Investing enables you to preserve your wealth so that the “future you” is safe and protected. Doing so will free up your time and energy going forward – time that will let you do whatever it is you enjoy doing.
Prudent investors usually allocate 10-20% of their income to investments, intending to have their money work for them, compounding in value instead of depreciating due to inflation. It’s essential to look at your current expenses and liabilities and figure out how much you can afford to invest. Long term and sustainable growth through Dollar Cost Averaging (DCA) is a safe bet when considering how much you are willing to deploy. You may want to explore your comfortability with managing your investments and ask, “Do I want to be more passive or more active in my approach?” Finally, what’s your understanding of Bitcoin and its inherent properties and risks?
Bitcoin as a Store of Value
Many people around the globe have found Bitcoin to be the most valuable money the world has ever seen. People with high conviction in Bitcoin usually choose to buy it when they can prudently afford to and save it as you would any highly valued asset or collectible. They view Bitcoin as an expression of free speech and self-sovereignty. Many people buy and hold and do not sell. They use fiat money to pay bills and expenses, but their unit of account is in Bitcoin. For you, Bitcoin could simply be another way to add diversity to your portfolio.
Bitcoin is a complex topic to digest. A fact to consider is that because Bitcoin’s supply is limited and its programmatic issuance is decreasing into the future. Any net new demand means the price has to rise. Investing in Bitcoin lets you store your time and energy in an asset that can theoretically increase in value indefinitely.
Stress-free Bitcoin accumulation
By using an app like Amber, and their Dollar Cost Averaging, or DCA option, you can purchase Bitcoin regularly, catching the lows, the highs and the middle as it steadily marches along its way towards global adoption. Most people don’t have the desire or time to monitor the markets for precise entry points, not to mention the possibility that your order on an exchange may not be filled during times of volatility.
Starting in October of 2015, if you had started investing $25 a week in Bitcoin, the value of your investment would be north of $220,000 today! The money you would have put in over that time is about $7,800. That is a 2,700% overall return on your investment and a roughly 450% yearly ROI! Check out Amber’s DCA calculator to see for yourself.
Apps like Amber also help consumers distil the signal from the noise surrounding cryptocurrencies in general. Large exchanges promote all kinds of tokens and coins in the hopes that you will buy, sell and trade them. These exchanges make profits from these trades and don’t necessarily stand behind the merits of any particular project.
The benefit of a Bitcoin-only service such as Amber is that you can be sure you are getting all the relevant information and tools needed to make informed decisions on your journey to investing in Bitcoin. There is something to be said about the integrity of a company that stands behind a new monetary asset accessible to all, launched organically over a decade ago, and has grown entirely out of people opting in because they believe that it may help change the world for the better.
Your personal Bitcoin strategy
Ultimately, deciding if Bitcoin is a good investment for you, how much you want to invest, and the strategy you choose to accumulate is a personal and often a collaborative decision. By choosing Bitcoin, you’re opting for the most robust and only genuinely decentralized money in existence. Bitcoin is the only cryptocurrency to achieve the network effects, absolute scarcity, and sufficient decentralization that the world has come to desire in a global and digital currency.
Many other cryptocurrencies claim to mimic Bitcoin’s merits, but they simply cannot compete when compared.
Beginning your Bitcoin journey
How much you choose to invest in Bitcoin will be a personal choice, and there is no harm in starting small as you grow your understanding of the attributes of this revolutionary new form of money. Getting off zero and keeping the ball rolling with DCA is a great way to build conviction and reap the enormous benefits as the world continues to wake up to Bitcoin.