I’ve written about Bitcoin in previous posts (here and here) and have long held the belief that it will shape our digital future in many ways. Even if you know little or nothing about the technology, it will shape your future the same way the Internet has changed how we live our daily lives. But I’m hoping it changes my life more than yours.
After dabbling in 2013, I cashed out most of my Bitcoin, retaining a small amount on a cold storage card and put it behind me. Late last year I read a few online articles that rekindled my interest and decided to buy back in. Bitcoin was selling for around $1500 CDN at the time and looked like it might be heading up so I thought it would be smart to buy a few coins and enjoy the ride. I also bought a number of Ether, another cryptocurrency that could be the heir apparent to Bitcoin and supports application development within its blockchain. More about the Ethereum network in a future post.
Since jumping back into cryptocurrencies Bitcoin has almost tripled in value and Ether has increased even more from my initial purchase price of $65. My initial investment has turned into something that may affect my future, my retirement and my quality of life in years to come.
Cryptocurrencies are beginning to enjoy a level of mainstream acceptance (although finding a local store, restaurant or service that accepts it as payment can be challenging). ICO’s (initial coin offerings) are popping up in every corner of the Internet with big names such as John McAfee jumping into the cryptocurrency pool and hoping to cash in on the wave of interest. Buyers should be wary as there are a number of scams with unsavoury promoters pushing their individual coins with the zeal of a circus huckster. If you’re looking at investing I offer this bit of advice: Caveat emptor
The rise in Bitcoin may offer me something that nothing else has managed to do as yet, that being large returns on a proportionally small investment. As mentioned previously, I started looking at Bitcoin in 2014, even setting up some mining software on my clunky PC which didn’t work of course (mining requires a significant amount of processing power, much more than my tired computer could provide). I jumped back in the last few months of 2016, using the Waves Coffee Bitcoin ATM to buy what I could afford and started buying actively on an exchange in January. I bought as much as my Coinbase account would allow, at first a meagre $130 a week which was quickly increased to $1000 a week due to my aggressive buying habits. I kept buying for the first 5 months of the year and included another cryptocurrency, Ether to my portfolio.
August 1 brought a fork to the Bitcoin blockchain and the result was an equal amount of Bictoin Cash was available to anyone holding Bitcoin up to August 1, 2017, which means I now own three cryptocurrencies.
I’ve tried hard over the years to save for my retirement. I belong to the company pension plan, have socked away money into my lame RRSP’s, bought and sold real estate (and paid VERY hefty capital gains in the process) and invested in a number of tangible commodities. Bitcoin may be the one investment that pays off, and pays off BIG. When Bitcoin was relatively cheap, I suggested it to anyone that would listen. Very few did. But those that did have already seen substantial increases in their investments, even during the doom and gloom served up by various media outlets.
My hope is that Bitcoin, Ether and Bitcoin Cash continue to increase in value. John McAfee has suggested that it may be worth more than USD $500,000 in three years or he has offered to “eat my dick on national tv”.
I can only hope that 2020 passes with Mr. McAfee’s dick in place as I will be comfortably retired and partially living off the gains in my cryptocurrency portfolio. Either that or drawing my pensions and spending what I’ve saved over the years. Either way, a nice beach sunset with someone I love will be an excellent way to end my days.