Investing in an asset at the right time is an art. That’s why good fund managers make the kind of money they do. A few years go, Cryptocurrencies or digital currencies came out and many people went all in. As they now benefit the gains, the rest of the population is just catching up.
In a world where different currencies such as dollars and euros are valued differently, it was only a matter of time where something more convenient came out. I started hearing of cryptocurrencies while in college about a decade ago. It was explained to me as digital currency that can be invested in, but I just didn’t understand the investing portion of it. In those days, everything I didn’t understand having to with financial gains got “the thing rich people do” tag. People were learning about the Bitcoin mining process and my priority was finishing the degree and making money at the part time job.
It’s now 2017 and Bitcoin, along with other cryptocurrencies are more than relevant. As of my writing this, one bitcoin is worth about $13,000 and a week ago, the value was around $18,000. This amount of volatility has a lot of people scared of touching digital currencies and I was in the same boat, but my source of apprehension was more due to ignorance. After the value of a coin crossed $10,000 a few months ago, it had my attention so I made it a point to narrow my gap of knowledge. Weeks ago at one of my real estate investors meetings, I got the chance to talk to an investor that had been learning and investing in cryptocurrencies since 2011. He didn’t tell me the value of his portfolio, but after mentioning his recent vacation trips, I knew investing in cryptocurrencies gave him and other people financial freedom. As we talked, I learned of the Greek moving to bitcoin a few years ago as their economy spiralled downward, and Amazon’s potential digital currency integration. The greek found it better to have their money in Bitcoin than in banks. Other countries like Venezuela that are experiencing economic hardships are looking into digital currencies as a solution. This tell me more countries will adopt it as time goes on. There’s currently a lot of pushback due to the volatility, but as with other market funds, cryptocurrencies will evolve with the required regulations. Amazon buying cryptocurrency domain names could be in speculation or telling of times to come, but it also shows the ecommerce giant is doing their due diligence.
Because of the convenience and how the masses have been reacting to cryptocurrency, I believe it will have a bigger impact on the global economy in the future. I now know more about it and understand the long term benefits of investing, but I’m not ready to yet. This falls under the regular old debate of paying off debt vs investing. I’ve paid off some debt this year and still have more to go. As I grow my income more and decrease liabilities, I get closer and closer to doubling down on investing. Currently, my investments are in Roth 401Ks and I’m comfortable using that as my leverage for the moment being. I’ve created digital currency wallet accounts with no deposits yet and have been tracking the exchanges.
It’s always good practice to do due diligence when it comes to investing. Just like other avenues like market funds and crowdfunding, gains are not guaranteed so it’s important to be ready for all outcomes. While I am not be ready at the moment to go all in on digital currencies, I’m learning and getting ready for when the right times comes along. Ignorance will no longer be an excuse. Let me know why you are waiting to start investing in cryptocurrencies.