It must have been some day back around 2010 that I started to hear the word Bitcoin getting used. I had no idea what it was or what it did, but it did sound kind of cool, and figured it had something to do with the internet. A few more mentions on some podcasts and curiosity killed the cat, so I ended up looking into this Bitcoin deal a bit further. I then tracked down a podcast that made an attempt to explain to me what Bitcoin was, what benefits it had and how it worked.
I felt more confused after listening to that podcast than I did before, so I basically chalked it up as “who cares, it’s not going to be a big deal anyway” and moved on.
Fast forward to 2014. I keep hearing this word getting used over and over, with more and more consistency. So I thought I would take another shot. I found a documentary that focused on what Bitcoin was and what problems it is supposed to solve, so I attempted to watch and learn.
Failed attempt #2.
I give up. I am by no means what I would consider a super smart guy, but I felt I had enough “computer” experience gained over the years to at least have an understanding of something like this. I mean how hard can this be to explain or understand? This Bitcoin deal is some type of digital money that we can now use so we don’t need to carry cash or coins on person with us anymore right? I guess that’s all this thing does……. well anyway, hopefully it works out in the future, but for now, I don’t really care just like last time I tried to understand it. Moving on…..
Fast forward now to September 2017, Split Croatia. I was living there at the time and hanging out with one of the Remote Year groups that were in town. Some of the group were constantly talking about Bitcoin, and some of the other Crypto Currencies that were becoming popular and it sounded interesting. Did I really want to try and learn this for my third time? Well, why not, what’s the worst that can happen right?
So I asked one of the guys (CD) if they would be willing to tell me how it all works over a couple beers, and got them to accept. I had him start from the beginning and explain it to me like I had never even heard of it before. Well, he did, and what he ended up explaining to me that day pretty much blew me away, and will most likely be a game changing, life altering day for me in my lifetime. Guess time will tell……
Not only did I much better understand what Bitcoin was and what problems it could potentially solve, but I also got to hear about something else that really blew my mind, BLOCKCHAIN TECHNOLOGY. It took me a bit to process just what a blockchain was, how it works, and what problems it could potentially solve, and I knew right away that this was an absolute game changer. I walked away from our discussion feeling like you had to be living on another planet if you could not see just how powerful and disruptive this technology is going to be.
I was hooked.
I started reading blogs and articles, watching YouTube videos, following experts on Twitter, joining Facebook Groups, joining and listening to Crypto Currency specific podcasts. You name it, I wanted to know about it so I could really get my head around this. It’s been the ultimate rabbit hole, and I feel like I am just starting to go down it. The more and more I learned, the more I wanted to keep going, it was and continues to be amazing!
Well, now the only way to really learn this stuff is to start putting my money where my mouth is. I need to actually buy some of these Crypto Currencies I have now been researching for a couple weeks and see what happens. For my first investment, let’s make sure and not go too crazy, and only invest a small amount to start. And also, let’s try and be diversified a bit, I don’t want all my eggs in one basket now do I…..
Okay. Here is what I am thinking. I want to put 70% of my total investment into Ethereum, 20% into Bitcoin, and 10% into Litecoin. As much as I love Bitcoin and watched what it has done lately, there is just something about Ethereum and it’s team of developers that I just really believe in, so that is where I want to put the bulk of it. And you never know with Litecoin, it could go way up down the road, a good long team play.
Now my initial game plan to start is a long term play where I will not take any of my principle investments out and need to commit to letting them sit or get eaten up if all of these crypto currencies fail. And once I hit a 25% return on any of these three coins, I will take my profits off the top and keep it going until I hit the next level of 25%. This will allow me to possibly have another revenue stream to add to the mix if all goes well, but obviously nothing to be relied upon.
Okay, I have done my research, prepared, this feels good, let’s do this!
September 14th, 2017; Bitcoin was currently selling at $3500, down quite a bit from the announcement that China would not be accepting it. Ethereum was at $245, and Litecoin was at $51. Buy, Buy Buy. And it’s DONE. I am now an owner of Crypto!
It’s funny, as I am writing this just under 3 months later (December 8, 2017) I am staring at the markets. Bitcoin is currently at $15,550 (down from it’s all time high of $17,800 yesterday) Ethereum is at $455 and Litecoin is on a TEAR all the way up to $131 (35% for the day) This is absolutely BONKERS! How does someone get their head around this scenario? Exciting times we live in……
So now fast forward to present. Again, it’s beginning of December and I am now currently living in Lisbon. I have been reading and studying up on as much as I can in the Crypto world, hell I even went to a Crypto Conference in Prague last month. I don’t think there is any secret that this has become a huge passion of mine and I hope I can start to make informed and calculated investments and decisions in this new wild and crazy space we have in front of us.
I wrote this just now for a few reasons. One, I need to start to get the words out of my head and onto paper. I want to start writing more, and this will force me to do just that. Two, I want to write about what I am learning along the way. That way I might be able to potentially help others along my journey of learning this stuff for myself. Third, I needed to start somewhere and figured a good start would be how I got to this point and why.
This is a crazy time we are living in. I truly feel that this new technology, specifically blockchain, is going to completely disrupt the internet and how we do business on a daily basis, it’s that BIG. I realize that these changes maybe won’t happen tomorrow, but they will be here sooner than you think, and the sooner you can start to learn and get in front of this will allow you to be in a much better place when it does.
Who knows, you play your cards right, you might be in a much better financial situation as well.
And Remember, The Herd Is Coming…..
UPDATE – I had originally wrote this post back at the beginning of December in Lisbon, Portugal but decided not to post it right away for some reason or another. Now fast forward to February 9th, 2018 in Medellin Colombia. It is now posted. And as of this posting A LOT has changed in the Crypto World. As of this writing, Bitcoin is at $8480, Ethereum is at $856 and Litecoin is at $157. WOW, what a difference 2 months makes. We just experienced a major pullback over the entire Crypto space with a huge amount of market cap leaving the market, with Bitcoin dropping as the high $5000 range, almost back to Summer 17 prices when I first bought. Major drop and we still might not be done. It is of course concerning, but I keep having to remind myself that at the end of the day, nothing has changed. The technology that everything is built on is the same as it was before, and that is the reason I originally invested. I have a very specific game plan in place over the next year with all my positions currently in place, so I just need to make sure to not make any crazy or reactive decisions based on the market going way down, or way up for that matter. I just need to learn from this experience, and be patient. It’s going to sure be interesting to watch over the next few months, and can’t wait to see what I will be writing next about this unbelievable opportunity we all have in front of us.