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| chart courtesy of bircoin.top |
I’ve been
waxing poetically lately about the merits of investing in Bitcoin, not because
I’m a financial analyst (which I most definitely am not, nor do I play one on my
pathetic 55 member YouTube
channel), but because I’m a full-time crime author who loves to bitch and moan about the
peaks and valleys associated with my monthly and semi-annual royalties. So why the waxing? Bitcoin for me,
has proven a store of value that has not only doubled in worth over the course
of the past year when I first bought in at $3K or so, but because of its
volatility, it makes for easy in-and-out trading. It has become a fairly steady income stream.
Like I’ve
written in the past, I keep two separate Bitcoin accounts. One for holding, or holdling as the crypto geeks like to
say, and one for shorting. That is, selling and/or taking small profits. On
average, I can make anywhere between $50-$100 per day on Bitcoin when it’s
particularly volatile (right now it’s trading sideways which makes me nada). But
there are expert traders out there…and yes, there are bots programmed to trade
too…that can reap thousands per day even when the up and down action is slow. I
don’t pretend to think I can beat the market, plus I’m terrible at math, so I
keep things simple by taking whatever my daily profit might be, whether it’s
$20 or $200. Like annual book sales, it’s all about averages in the end.
But why
should you invest in Bitcoin now?
In just 165
days or so, the supply of Bitcoin will be halved. Unlike our dollar, or any
other fiat currency for that matter, there is a limited supply of Bitcoin.
In other words, Bitcoin cannot be devalued. However, it can lose it’s worth if
there is a massive sell-off, such as the one that occurred last
December/January when the price plummeted by more than 50%. But, and this is a
big but,
the price rallied not only because Bitcoin bulls were able to recognize a primo
buying opportunity when they saw it, the long term thinkers had the 2020 halving
in mind.
I’ll be
honest, I had no idea what a halving was when I first bought in. I had no idea
what a hodl was much less a short or
a long. As for the Blockchain, I’m still not sure what it is. It took me
forever to realize Bitcoin is a decentralized store of value, as opposed to a
government run currency like USD (I know the Fed Reserve is said to be a privately
run enterprise, but it’s not). Like I said, I’m not a Bitcoin expert (so take what I say with a pinch of salt and do your own research). I’m just
an enthusiast and an investor who believes that the new crypto digital asset
will act much like the Internet protocol of the past, and therefore one day establish
itself as one of the dominant ways in which we create wealth and/or pay for
goods and services. How’s that for a prediction from a mid-list hard-boiled
mystery author?
No one, not
even the experts, know for certain that the halving will inflate Bitcoin’s
price dramatically come April/May of 2020, but theoretically it looks really,
really good. And like they say, if it smells like an orange, behaves like an
orange, tastes like an orange, it’s probably an orange. But even if Bitcoin
doesn’t rise in price dramatically, I will still continue to dollar cost
average on a weekly basis in my first account, while shorting my profits in my
second account. In the meantime, the digital asset will only continue to slowly
but surely increase in value. It’s simply case of supply and demand (see the chart above).
As a
prolific novelist, I can’t think of a better time to be a writer. This was made possible
by the Internet. As an investor, there’s no better time to be building
individual wealth. This was made possible by the birth of digital currency.
When will both come to definitive end? When somebody turns the power off. For
good.
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