Five Things Buying Bitcoin Teaches You
Plus... catching up with Bitcoin Lake, and a few headlines you shouldn't miss
I’ve been doing a lot of thinking lately about big and small things.
I suppose that’s typical given the upheaval and transition our society has been undergoing over the last few years. Large shifts have led me to question a lot.
Some of that questioning has been about Bitcoin (plus other cryptos). A few days ago, I made a list of things that investing in Bitcoin has taught me. And to my surprise, it was more than I thought.
Here are the top five qualities:
Patience —As I’ve written many times before, investing in Bitcoin doesn’t mean you get rich quickly. Rather, it’s a slow process that often involves buying dips and holding for the long term. That takes a certain mindset, one at odds with the instant gratification of modern Western society. But that’s a good thing.
Humility — This trait is often a twin to patience. A little humility never hurt anyone, and being a Bitcoiner doesn’t mean you have to become a flashy jerk. The custom Lamborghini might be in your future, but many Bitcoiners won’t approve of you flaunting it all over social media. This is about generational security, not materialism. Get too cocky and you’ll lose the plot.
Risk Tolerance — The deep swings Bitcoin endures can be stomach churning and panic inducing. It’s easy to get arrogant when the price increases substantially, and tempting to reach for the sell button during days when the downside is steep. Each of these moments is a lesson in risk. Spend a few months invested in Bitcoin, and you’ll find yourself better prepared for other investment risks. The stock market will look tame by comparison! Real estate? Even tamer.
How the game is rigged — Bitcoin was born during the deepest part of the Great Recession, and in many ways it’s an answer to the money printing, debt, bailouts, and corporate welfare we’ve seen dominate our society since. Investing in Bitcoin helps you see it all so clearly. It’s unlike anything else.
How to win — It’s often been said that millionaires and the ultra wealthy have at least seven streams of income. Adding Bitcoin into your portfolio gives you another stream of revenue—and it’s always good to diversify. Diversification is how you win the game of life—at least financially. And don’t you want to?
Plus…
Catching up with Bitcoin Lake
Q: How have the students responded to Bitcoin education?
Melder: Remarkably well. At this point they understand the fundamental concepts of scarcity and fiat. After several classes they were given the choices between the local currency (Quetzal) the US dollar and Bitcoin - they unanimously chose Bitcoin. When asked if they ever plan to sell their Bitcoin, the resounding answer is no!
Q: What has been the most unexpected part of this process?
Melder: The tremendous speed at which businesses have been onboarded. Given the experience in El Salvador at Bitcoin Beach, we figured we would have a long road ahead in teaching the children about Bitcoin and then the adults and businesses would follow. Since El Salvador borders Guatemala, most of the adults and business owners we speak with have heard of Bitcoin. Some have even had Salvadoran tourists come to the lake region and ask to pay in Bitcoin and have walked out if the answer is no.
Q: What has been the most exciting part of this process?
Melder: Realizing that for the first time in generations, Guatemalans are going to have a real chance at building wealth. To see skeptical adults and businesses owners who were a tough sell, become totally sold on the concept. One business owner was all smiles when we came back this time. She has seen the growth of Bitcoin and is very excited about her future.
Q; What have you learned in the last three months that you didn’t know before?
Melder: That there are people who want to build on your success and/or use our name recognition to claim success for themselves - it has been quite unexpected. I think also that it is much easier in the Bitcoin community for people to donate to another new user than to “Bitcoin Lake.” For instance, we get a lot of engagement when we ask Bitcoiners to pay for ice cream for the children. We get people from all over the world that will send Satoshis to pay for something like that.
Q: What’s the outlook for the next few months/ rest of the school year?
Melder: Wow, I think really we have a tremendous chance to have a larger than expected conversion of business and people to using Bitcoin. I think on the social and environmental side, we have a exciting opportunity to show how Bitcoin can be used to transform the community economically, help restore the environment by using Bitcoin as an economic incentive and begin to build out a reliable energy grid using Bitcoin mining. I think we can at least start the energy grid project by the end of the year.
Finally…
The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.