Bitcoin Investing Is A Golden Opportunity to Build Wealth
This is a once-in-a-lifetime chance to get in on the ground floor of the first major wealth-creation opportunity of the 21st century and to close America’s racial wealth gap. African-Americans need to invest now or get left behind — again.
Bitcoin Investing Is Fool’s Gold — A Bubble Waiting To Pop
The rapidly escalating valuation of Bitcoin has all of the markings of the past tech and real estate bubbles that burst, causing financial devastation for millions of Americans and leaving our economy in a shambles. Only fools would buy into Bitcoin as a get-rich-quick investment opportunity.
Whether you’re in one camp or the other, or somewhere in between, before you consider engaging in Bitcoin investing, you need to be clear about what, exactly, you’re investing in. The fastest way to lose your money — and to be ripped off by the many cryptocurrency scam artists crawling out of the woodwork and slithering across the internet — is to put your money into any investment that you don’t thoroughly understand.
Cryptocurrency multi-level marketing scams have already emerged. If you’re not willing to spend time and energy to become thoroughly educated about Bitcoin or any potential investment opportunity, you shouldn’t be putting your money into it. If you don’t get it, don’t invest in it.
(My standard for my comprehension of just about anything is whether I can explain it to an average 12-year-old. I can’t seem to explain the term blockchain so far, so I’m far from an expert, and have no plans to add Bitcoin to my portfolio at this time).
For now, here’s a very elementary explanation: A cryptocurrency is a digital asset designed to work as a medium of exchange, control the creation of additional units of currency (kind of how the U.S. Treasury Department and the Federal Reserve decide when to print new money and how much to keep in circulation), and verify the transfer of assets. Think of it as digital money. However, unlike U.S. tender (i.e., cash), buying and selling Bitcoin and other cryptocurrency is far more complex. By the way, while Bitcoin was the first, there are more than 1,300 digital currencies and counting. You can check out “How To Invest In Bitcoin” by Sequoia Blodgett to learn some of the basics. However, the question being addressed here is not ‘how to?’, but ‘should you?’
The answer? It depends, of course. The best investment options are different for each individual, depending on current lifestyle, future needs and short- and long-term financial goals. However, building wealth is never about finding that hot, can’t-miss investment opportunity. It’s about considering every investment option within the context of a broad, diverse investment strategy and overall financial plan.
That’s why the first step to becoming an investor is not finding that can’t-miss investment. (Yesterday, it was that hot tech IPO; today, it’s Bitcoin; tomorrow, who knows?) It’s about developing a financial plan, personalized specifically for you, and managing and adjusting it over time as your circumstances change, ideally with the help of a qualified financial planner.
Yes, Bitcoin is hot. It is also new, largely unregulated, difficult for the average person to trade and even banned or restricted in some countries. Therefore, it’s a speculative investment—there is a good chance that you will lose every penny you invest—which means you should not be raiding your emergency fund, taking out a second mortgage or 401(k) loan, borrowing against your credit card, or going to other extremes to pour money into Bitcoin. And if you have no other investment assets, are carrying high-interest debt, have no emergency savings and/or haven’t fully funded your retirement, you have no business putting all of your money into Bitcoin or any cryptocurrency—no matter how hot it is
