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
- before the mainstream got on board twitter, Kevin Rose was the number one followed person on the platform
- 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
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?”
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:
- Invest in processor companies like AMD and Nvidia because cryptocurrency enthusiasts are buying these like crazy to try and mine the coins
- 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.