RIP Bitcoin – Is Bitcoin Dead And How Do I Invest In Bitcoin?
Is bitcoin dying?
Billions of dollars lost…
Is the crypto world falling apart?
According to 99 Bitcoins, bitcoin has already died 300 times!
How Do I Invest In Bitcoin?
Last year bitcoin was $1000…
Now it is $4300+ (At time of writing)
If you bought in November and December of 2018, you might think you have lost money…
If you sold it, then yes you did.
Best case scenario, you still have it and then you have not lost anything.
This is not financial advice, but I think you should probably not sell it.
Last year was a bitcoin frenzy.
Driven by greed.
Many saw an opportunity to get rich quick.
Most of those blood sucking buyers actually deserved to lose money.
Not all, but some.
Last December when bitcoin was almost $20,000 the world was saying how amazing bitcoin was.
The media couldn’t get enough of the frenzy!
Everyone was asking “How Do I Invest in bitcoin?”
Pump Pump Pump And Misinformation
Misinformation and redirection along with manipulation created a cool trend.
Greed, greed, greed!
Celebrities were jumping on bitcoin.
They made it look cool.
Most had no idea what they were talking about!
It was the hot thing!
So How Do I Invest In Bitcoin?
How different the story today.
No one wants to admit they bought in December when it was high. Bitcoin has become a dark shady topic…
Don’t talk about it in front of your friends in case they think you lost money!
Everyone curses bitcoin because the price has gone down…
Bitcoin didn’t change in anyway.
The price value of a coin went down!
Untrained Investors Trade Based On Price
This is a mistake.
Trading decisions on probable increase.
Buying at a low price expecting the price will go up, they hope they will be right and they will win…
If they are lucky, they sell high and they win!
They base their trading decisions on the assumption they will be right!
Instead, trade on the assumption that you will be wrong!
Let’s say bitcoin goes down to $1000…
What will that mean for the untrained investor?
Panic selling and loss is the normal result.
What Should It Mean For You?
It should not make any difference to you!
If the price goes down to $1, it should not make the slightest bit of difference to you.
It is not bitcoin that will create the wealth…
Remember too that when bitcoin was created it had no monetary value.
It provided a service.
That service still exists.
The price does not affect the value of the service.
So the question has to be asked…
What were people actually paying $20,000 for in December 2017…
And why will they only pay $4500 for it today?
It is the technology behind bitcoin that will create the wealth!
The price value of bitcoin will sky rocket because of the technology it sits on.
You have to understand the bitcoin space…
The people who lose money, do not understand what bitcoin is…
If you are in the bitcoin space and speculating on price you need to understand the fundamentals.
Why Was Bitcoin Created?
It was created to provide a decentralized peer-to-peer trust-less monetary system.
Decentralization and being trust-less are not affected by the short term price changes.
Short term price movements operate outside of the rules of bitcoin.
The fundamentals of bitcoin reflect the long term price evaluation.
To fully understand what I mean, you need to go to the reason bitcoin was created.
But first, let me compare that with another product, namely a watch.
If a watch is $100 or a watch is $1,000 they both do the same thing. The underlying fundamental reason a watch was created was to tell time.
It does not matter if the price of the watch changes, the true value of a watch is in it’s use.
The real use of a watch is to tell time.
The price of a watch may change, but if all you want the watch for is to tell time, you really don’t care.
It may come wrapped in gold, it may have a fancy name on it, but the use of a watch (to tell time) is not affected by price.
And that’s the real value.
The Price of Bitcoin Does Not Affect What It Does
What it does is it allows us to financially transact without the permission or intervention of a 3rd party.
It creates a decentralized trust-less banking system.
This means it cannot be inflated or devalued.
It cannot be taken from us if we don’t allow it.
It stops fractional reserve banking (which is a collapsing fiat debt system)
We don’t need to trust anyone to use it.
That’s is the true value.
And how much is it worth to stop the governments from fraudulent activities?
Non of that is affected by price.
In fact, if you take away the comparison against fiat and just use the product for what it is designed for, therein lies the true value.
Who Controls Our Money
If you want to see who controls your money watch this video:
Henry Ford – “It is well enough that people of our nation do not understand our banking and monetary system., for if they did, I believe there would be a revolution before tomorrow morning.“
Value affects price. Price does not affect value.
How much would you buy a bottle of water for?
What if you were on a desert island about to die of thirst?
The higher the value, the higher the price.
When the world understands the value, you will not be able to stop the price going up.
What’s This WWW Thing?
It was not so long ago, that people feared the internet.
I heard people asking “what’s this www thing?”
The media was hysterical. They spread the possibility of government take overs. They promoted bad elements within the internet.
Internet crept into our lives and is now considered a basic necessity of life.
Most people did not go on internet training course to learn how to use it.
Kids use it.
Grandparents use it.
Try taking it away or turning it off for a day and see how happy your family will be.
Crypto Is The Same
The media is again telling us that it will be the downfall of mankind.
Governments and banks scare us into thinking it will destroy our finances…
The SEC even tell us that public endorsement of bitcoin could be illegal.
Yet we cannot ignore the technology behind bitcoin.
Like the internet, bitcoin, crypto and blockchain will come to a point where we cannot live without it.
Are you aware that bitcoin is on track to transfer more value than Mastercard on a daily basis?
The decentralized and trust-less technology is the key.
This is a significant change in business models.
The world has been waiting for it.
We suffer fraudulent governments and financial institutions for too long.
We have been demanding change.
The technology behind bitcoin is the change.
The governments and institutions going to need it.
Corporations and individuals are going to need it.
But the big question is, How Do I Invest In Bitcoin?
Crypto Mass Adoption Is Coming
Cryptocurrency will hit mass adoption for this very reason. (Not financial advice)
10% of global GDP will revolve around blockchain technology by 2025.
Not all government offices are bad.
Ohio now allows you to pay your taxes with bitcoin.
As more government offices allow this to happen can you imagine the ripple effect?
What Is A Blockchain?
“As each transaction occurs, and the parties agree to its details, it’s encoded into a block of digital data and uniquely signed or identified.
Each block is connected to the one before and after it, creating an irreversible, immutable chain.
Blocks are chained together preventing any block from being altered or a block being inserted between two existing blocks.”
Blockchain is permanent
It is a permanent ledger of data.
The reason it cannot change it’s encoded.
Encoding a sequence of characters in a specialized format. This allows efficient transmission or storage.
Blockchain technology is a powerful system that is almost impossible to hack.
Businesses around the world are implementing Blockchain into their business models.
An encoded block is permanent.
The technology does not allow hacking.
Don’t Exchanges Get Hacked?
You may have heard of hacking in crypto exchanges.
Millions of dollars are reportedly lost.
The loss here is different.
This is not blockchain hacking, but rather platform hacking.
The exchange did not have enough security on it’s platforms.
If you bank online, the same risk occurs.
When you send money from your computer to the bank, it an encrypted transmission.
The encrypted transmission from point A to point B is on a secure SSL connection.
Stolen banking data is not stolen in the transmission of the data from you to the bank.
The theft is due to a virus or retrieval from your computer or a compromised bank system.
The transfer is safe.
Blockchain Technology Is Safe
In the same way, the blockchains technology is safe.
It uses the best encryption available today.
With modern technology today, encrypted data transmission is safe.
Encrypted cryptocurrency is also safe.
It is a trust-less transmission. Users do not need to trust anyone to transfer.
The system does it with security.
Verification of a transaction is possible.
Changed or alteration is not possible.
So it is a trust-less, decentralized blockchain.
What does decentralized mean?
To work with bitcoin or crypto, it is important you understand this.
It is one of the fundamentals of crypto.
It is understandable that price fluctuations excite people.
Understanding the fundamentals of blockchain technology is where the wealth is.
The lack of understanding is a root cause of financial loss..
In the future, people will say, “I got into bitcoin when it was $1000. It went up to almost $20,000 and I sold it when it went down to $6000. I lost $14,000, but in the end I made $5000!”
In 5 years, bitcoin could be $250,000!
They lost more because they sold based on price not fundamentals.
Technology will create the price increase long term.
No single authority controls it.
Centralized financial system allow governments to increase or decrease interest rates.
You have no control over that, yet it affects you!
Governments can print more money. You have no control over it.
This devalues the current money.
Your savings devalue.
Your retirement accounts devalue.
Money is not as worth as much.
It’s called inflation.
You have no control over it.
It is a centralized system. The government control it. You do not.
Government Can Freeze Your Assets
If they freeze your assets, you cannot get access to them.
Even if you are outside of the US or have never been to the US, they can seize your assets. See the case of Kim Dotcom.
A decentralized blockchain prevents a central authority to make or change rules. It does not allow a centralized authority to mess with your banking.
You may have noticed that governments are trying to enforce regulations on crypto.
They want to centralize it. They want to control it.
Can you understand why they would want to control it.
Removing our control puts us back into a centralized environment.
It enforces dictatorship. They dictate to us.
It removes democracy.
It removes freedom.
Banks Want Centralized System
Banks are almost eliminated by decentralized banking.
It is not here yet. We are on the way to full decentralized banking.
It might take a few years to get there, but that is where we are heading.
Government controls the money with centralized banking. It can inflate it. It can devalue it. The bank can invest it and keep the returns.
Your money is 100% out of your control while it is in the bank. They can seize it and prevent you from getting access to it.
A decentralized bitcoin model prohibits government control. They cannot seize your bitcoin.
They cannot take it.
You can store your bitcoin in your own exchanges and external device. If you memorize your private access key, no one can take them away from you.
It cannot be done.
They cannot freeze it.
Cannot devalue it.
It can’t be inflated.
They cannot print more.
No one can shut blockchain.
Understanding Torrents Will Help
If you do not understand why blockchain cannot shut down, think about torrents.
Torrents are a peer-to-peer file sharing system.
Users share a link to a file. These files are on one or many computers. The torrent network allows transfer across the network.
No one can stop a transfer as there is no central database. The network of computers store the data
If you remember Limewire, Gnutella or Napster, these were similar systems. They shared files in a similar way and were shutdown.
It was possible to shut Napster down as it was a centralized system.
Napster shut down due to copyright infringement accusations. Napster complied and closed themselves down.
Torrents have no central server hosting the data. It’s unstoppable.
When you download a file on torrent, you are downloading a file from a user (or users) on a network from all over the world.
You cannot shut them all down. It cannot happen.
Technology Has A Lot Of Positives
The world would be a better place if the distribution of education remained free.
It would be a good thing if doctors around the world can share their knowledge unhindered.
The sharing of information in a free, unrestricted manner would change the world.
Could blockchain share illegal activities?
Yes of course…
But every technology has that same risk.
The postal service can and does send illegal products.
So does the internet…
Everything has bad potential.
Illegal activity is always going to happen, but we cannot stop the good because there is bad.
We need to work together to make it better.
How Do I Invest In Bitcoin – Intent Leads The Decision
This is not (again) financial or investing advice.
I am a huge fan in passive investing.
10 years ago I bought a condominium. I rent to a tenant.
My intent was not to sell the property.
My intent is still not to sell it.
So if I am not going to sell it, do I care short term what the value is?
I pay attention to it, but I don’t care.
All I am interested in is the amount of money that comes in from the rental.
Which increases each year…
Regardless of the price!
House Rentals Not Affected By House Price Changes
Let me explain…
“I buy a house for $200,000 and I rent it out for $5000 a month, I don’t care if the price value of the house drops to $50,000. I have no intention of selling it and I will still get $5000 a month in rent.”
It doesn’t matter.
The cash flow is important.
Cash flow allows you buy more assets.
When you are using crypto in the same way, it does not matter if the price goes down, because the intent is not to sell it.
My intent is not to sell my bitcoin.
I have not sold any bitcoin since I bought in Feb 2017.
I have not lost anything…
What I do is invest my bitcoin in programs.
The end result is a return of more bitcoin.
That is the long term strategy.
Do not confuse skill with a bull market!
“Anyone can sail as ship in calm waters!”
The calm waters last year as bitcoin rose in value to almost $20,000 was easy for any bitcoin captain to sail his ship in and make money…
I took all my bitcoin, invested it in programs that multiplied it.
Now I have more bitcoin that this time last year.
About 80% more…
I am not interested in the daily fluctuations of the value of bitcoin…
Also I am not interested in the news that the media is putting out…
I am waiting for the fundamental basics and technology of bitcoin to kick in…
When it does, everyone who sold their bitcoin will kick themselves…
Should I Invest In Bitcoin? – How Do I Invest In Bitcoin?
Should you invest in bitcoin?
- Do you believe that we need a decentralized trust-less banking system?
- Are you tired of expensive bank transfers?
- Do you think it is time you could send money without 3rd party approval?
- Is bitcoin one of the best opportunities you have ever seen?
- Do you think it is possible to get healthy returns with bitcoin?
- Can you see mass adoption of bitcoin in the future?
- Do you think large corporations will invest in bitcoin?
- Do you understand the fundamental reason bitcoin was created?
If you said YES to any of those questions, then you may want to consider investing in bitcoin?
How Do I Invest In Bitcoin?
- Are you knowledgeable in day trading?
- Are you prepared to take medium to high risk?
- Do you understand that you could lose all your money?
- Can you invest long term (1 year to 5 years?)
Do you want to buy bitcoin and trade it on short term basis?
This is called day trading.
It can make a lot of money, but can also be very stressful and you can lose a lot if you do not know what you are doing.
WARNING: If you do not understand day trading techniques, you will almost certainly lose all your money.
Over the last 2 weeks, the price of bitcoin plunged.
I have not listened to a single guru, who accurately predicted what was going to happen using technical analysis.
Nor have I heard a single guru educating us with what is actually going to happen.
My conclusion is they don’t know what is going to happen.
So if the experts cannot predict with certainty, do you think you can?
If you day trade without knowledge you will almost certainly lose all your investment.
If you like those odds, then go ahead.!
Do you want to buy bitcoin and hold it long term?
To hold bitcoin long term is actually to HODL
This can be very profitable.
Over the last 9 years, bitcoin has constantly grown in price value.
You must know when to buy and when to sell.
You will often hear “buy low sell high”
Last December 2017 the price was $19,000 a coin.
If you bought then, you may be panicking right now.
The price today is $4043.50.
If you sold now you would lose a lot of money.
You need to wait for the price to come up.
You need to HODL
No one can guarantee the price direction of bitcoin, so day trading and HODL’ing both have risks.
Speculative Buying Against Accumulative Buying
If you day trade or HODL, you are speculatively buying.
You buy speculating that the price will go up.
If you are a nervous investor, this is probably not for you.
You might want something a bit safer.
Bitcoin investing can be very profitable.
This year, a lot of people lost money with bitcoin…
If you are OK with the risk then bitcoin could be for you.
Alternative and Safer Ways To Invest
My goal this year is to multiply my bitcoin as much as I can.
I believe that bitcoin is here to stay.
However, I do not day trade anymore. It’s too risky for me.
I do not HODL. It’s boring and slow.
The bitcoin I have keeps growing.
I work with specialized platforms that give me great returns.
The volatile prices does not interest me.
The platform I use gives me a return no matter what happens to the price of bitcoin.
Would that interest you?
If the price of bitcoin went down and you still made money would that be ok?
In fact I have turned $1,000 into $6,128.00 and actually withdrawn $1,646 from the system. The rest I am leaving in the platform for long term returns.
If you would like information about how you can work with the same platform, you can email me directly at email@example.com
I will answer any questions you may have and show you how to get started and get similar results.
So How Do I Invest In Bitcoin?
Email me here and I will help you firstname.lastname@example.org
This post “RIP Bitcoin – Is Bitcoin Dead And How Do I Invest In Bitcoin?” was written by Tim Bennett exclusively for BitcoinTrainingCamp.com. ©2018