Cryptocurrency Thoughts from Jackson Hole

After spending the weekend in Jackson Hole for my birthday and being busy for a month I finally got around to writing this cryptocurrency post.

What the $@%& is cryptocurrency and why does anybody care?

Flashback to four years ago when Bitcoin, a decentralized digital currency, came onto my radar.

I first heard about Bitcoin from following digg.com founder Kevin Rose, who, in my opinion, has had his finger on the pulse of tech related business for over a decade.

His track record:

  • digg.com (Obviously)
    • was reddit before there was reddit and probably invented the “like” button and many other things we see in social media today
  • Twitter
    • before the mainstream got on board twitter, Kevin Rose was the number one followed person on the platform
  • Square
    • while it was still in development (man I wish I could have invested in this when I was a senior in high school) Rose was talking about the implications for small businesses
  • many others

I would highly recommend getting on his email list, The Journal, for once a month updates and watch his podcast, The Kevin Rose Show.

Anyway:

In the summer of 2013, Bitcoin was increasing in value and cost less than $100 per coin. The decentralized aspects and the self validating (via mining) interested me most. I attempted to create an offline wallet and buy some coins from Mtgox.com.

Long story short:

It didn’t work out and I didn’t end up buying any coins.

Much to my dismay, a couple months later the price of Bitcoin skyrocketed to over $1K/coin and I missed out on 10x my money… Well, not really.

To think I would have held on past the initial $400 peak is optimistic and, if I did, Bitcoin crashed quickly after the $1k peak and mtgox.com was shutdown and all the coins on that platform vanished (that would have been fun to be a part of – eye-roll).

Here we are 4 years later and Bitcoin is worth over $6,000 per coin and there are dozens, if not hundreds, of other cryptocurrencies being traded like stocks.

Where do I sign?

A better question would be, “Should I get in on this or is it a scam?”

John McAfee, computer security guru and likely Belizean expat murderer, seems to think Bitcoin is going straight past the moon to Jupiter.

Let’s not take his word for it.

Many real experts have started to take cryptocurrencies seriously and Bitcoin itself has posted 600% returns since January 1st. I for one will be holding a small amount of Bitcoin until July 17, 2020. A day when I’ll either have made hundreds of thousands of dollars or I’ll get to see John McAfee “eat my [his] dick on national television.”

The more conservitive (and probably smarter) play:

  1. Invest in processor companies like AMD and Nvidia because cryptocurrency enthusiasts are buying these like crazy to try and mine the coins
  2. Passively mine coins via Genesis Mining
    • This service allows you to buy 2 year contracts where they will mine the coins for you and pay you daily – should end up doubling my money by the end of the contract but am perfectly willing to lose it all
    • This is nice passive income and could be worth a decent amount if the coins continue to appreciate like they have been. Use code eSLq6c at www.genesis-mining.com to save 3% and start mining!
    • I bought $200 worth of Ethereum hash power and have been getting about $0.50 worth a day. Multiply that by the 2 year contract and thats almost a 100% return over 2 years without any coin appreciation.

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