Bitcoin and Cryptocurrencies
Why you should not buy Bitcoin
A philosophical reason behind not to buy Bitcoin
It is not financial advice. I myself have $57 worth of Etherium and maybe BTC 0.0019 locked in my PC because I forgot the password of my Bitcoin wallet. I bought these Bitcoins probably in 2016, just for fun, and didn’t bother to write down the password. I can see them on my PC but can’t do anything with them.
If you ask me, I would not advise you to buy Bitcoin for the same reason I will not ask you to buy a lottery. Now you will say Bitcoin is not a lottery system, but the way media and people interpret it, it certainly looks like one.
Peter Thiel gave a whole lecture on why you should not treat your life as a lottery system. You missed Bitcoin when it was at $600 dollars? That’s ok. Everyone missed it. Lots of people bought it for $100 and sold it for $150. And many buying it for 20k will sell it for 25k. And one person spent 10,000 Bitcoin to buy two pizzas. I mean I am way better with my BTC 0.0019.
So what would I advise you? Maybe next month, don’t spend $100 on Starbucks and instead buy 1 share of Starbucks. You did two great things with this action, one you didn’t pay 5 times the price of a regular coffee, and second, you put some money aside and invested it. Starbucks is a great company to invest in and probably will be around the next decade too (I assume).
What about the FOMO (fear of missing out) of Bitcoin? Well if you do maths, if Bitcoin reaches 100k in the next 3 years, that’s 5 times the current rate. But what if the US or EU governments banned BTC? It will be worth zero. So it is a lottery. Do what you do with the lottery, buy $100 worth of Bitcoin, store it in your e-wallet, and write down the password on a paper, and place it in your bank locker.
I am a tech nerd and love Bitcoin as a technology but I will not advise you to believe those people who would ask you to buy Bitcoin with your credit card. There is another way you can get some Bitcoin, as Andreas M. Antonopoulos recommended, if you are a freelancer, you can ask your clients to pay you in Bitcoin. Or what Mark Cuban said, invest no more than 5% of your income in Bitcoin.
The only and true way of generating wealth is by solving a given problem and sell the solution for more than your cost. It is a more fulfilling and interesting way of generating wealth than considering your life as a lottery ticket. So many people are chasing down the next Amazon, Facebook, and Apple and probably missing out on so many similar opportunities that are in front of them. Just want to end with my favorite quote by Warren Buffet.
Nobody wants to get rich slow. ~ Warren Buffet