My mission is to be an advocate for a better world, built on the foundation that we keep a fair and true system. Through conversation, my hope is to help bridge the Bitcoin divide, Zoomers To Boomers!
BTC price at the time of this writing: $62,590 (congrats to a new ATH yesterday!)
“Born too late to explore the earth, born too early to explore the universe, born just in time to explore the Cryptoverse” -Benjamin Cowen
Bens Youtube: https://www.youtube.com/channel/UCRvqjQPSeaWn-uEx-w0XOIg
My dad was sold, and while I’m a good salesman at heart, I wanted to see what other conversations I could get into with some family members.
This one happened naturally. There was a ton of political turmoil, news headlines, election drama, and unknowns about the virus going on when we first started talking crypto. But at the root of it all, I knew that my due diligence on the crypto markets had to be shared. I felt confident in getting someone close to me involved. And once again, in the back of my mind was this growing curiosity of generational wealth.
“How can we keep growing as a family financially? Why not help each other if we see an opportunity? Why is this topic so taboo? Aren’t we trying to setup every generation better than the last? What if it WORKS?” - I digress,
Originally, Krypto Unc heard about Bitcoin in 2009, pushed it off as another fad just like everyone else.
Let me also be clear, family members are normally not a good candidate to talk about finances with, because historically, money makes things messy for whatever reason.
My Uncle and I have a unique relationship, I think we connect on this level very easily and not everyone can relate. It was ultimately his willingness to listen, trust, and then verify the information I was giving to him that got him this far.
After some conversations, we laid out the risk and reward of $BTC, $ETH, $LINK, $MARA, $RIOT, and $ADA. I’m not going to tell you an allocation, or what we decided to do with his slimy USD, but I will tell you that he wasn’t shy and he trusted our plan. He took the leap and he didn’t look back. THIS is the hardest part…more on this later.
So he came into 2020 as a complete rookie, no knowledge of crypto functions, blockchain, or how to go about purchasing them. Furthermore, we had to broaden his knowledge of interest rates, private keys, wallets, charts, lending, staking etc. We were starting from scratch, and that’s why this story is so fun to tell, its so relatable. You gotta start somewhere!
“But how do you know when to buy and sell”
“Is this a good time to get involved”
“What if it crashes”
“Am I too late, the price has gone up so much”
While these were valid questions, they were the exact same questions I had when I first started my Crypto journey. This is the gap on the bridge that I am trying to close.
Below are some of the compiled lessons, rules, and thoughts around his experience over the past 11 months.
Key Investment Thesis/ History of Bitcoin:
The subprime loan financial crisis in 2008 was the catalyst for Satoshi to create a decentralized, peer to peer, monetary network.
Bank account interest rates paying out less than half a percent should be a crime. Stable coins like Gemini Coin are paying 8.88% and my bank whos supposed to have my best interest in mind (no pun intended), cant even give me 1%?
The world needs a new way to exchange value and Satoshi realized this before anyone. With the global economy becoming more intertwined every year, Web 3.0, digital assets, and the digitization of our lives was inevitable. So why not money? Oh and something called Covid-19 accelerated these developments by a factor of 10.
Younger generations want to upgrade the legacy system, its archaic, slow moving, expensive, and time consuming. Bitcoin ushered in a revolution. One that would change our entire monetary system. And we have a front row seat.
The Problem:
Krypto Unc has a bank account of cash, not working for him, not generating yield, and producing a real rate of return that is negative, relative to inflation. This isn’t his fault. We’ve all been told to save, save, save. This is where you almost have to hardwire your brain to think about your savings a little differently.
The U.S Government is printing trillions, literally trillions of dollars, at the click of a button. They have printed 40% of all USD in existence in the last year. How can you protect yourself from this? What if you could own a coin whos supply is regulated, verified, and unmanipulated by someone in a higher chair than you? Sounds good to me..
Michael Saylor put it beautifully, and I paraphrase: “Cash in a bank account is just a melting block of ice, Bitcoin is the dominant digital monetary network”
This quote is hilarious to me^
Rules of the trade:
We opted for a dollar cost average (DCA) method. Over 2-3 months, he was fully into the position and here are his constructs.
Understanding your investment character is everything. There’s more than one way to play it. Hodlr, trader, 50x leverage… what kind of trader/investor are you?
have an investment plan. This needs to be fairly detailed but also adjusted and fluid when you learn new market information.
Remember that the 1 year mark is significantly more friendly on capital gains.
Get off 0, you have to learn from playing and the beauty of Crypto is that you don’t have to buy a full coin. Ultimately, going from nothing to something was a big mindset change.
Deploy dry powder on dips that scare you, that’s where the opportunity is.
Have conviction, it will save you a lot of stress and anxiety about price action.
Tips to new HODLrs
Never chase the market, don’t be in a rush, the train wont leave without you.
Long term often works better and eliminates emotional decisions.
Don’t watch main stream news, they have a “sky is falling” mentality.
The best time to invest was yesterday.
Spend 3-5 hours a week learning. Watch videos, listen to people smarter than you, be open minded.
Your brain is going to try to make you do things out of emotion, take a step back, and remember what your plan was from the start.
Today we are almost a full year into my Uncles crypto journey. As a member of Bitcoin class of 2020, he has experienced:
A Bitcoin run up from $15,000 to $63,000.
An Ethereum run up from $500 to $4300.
A 5 month bear market that spooked many out of their positions (lack of conviction).
China banned Crypto
FUD around energy concerns
A Bitcoin futures ETF
This is not easy, we did not get lucky, there was no magical plan or potion that got us to this point, but today we stand staring at the charts wondering… what’s next?
THANKYOU for reading!
Michael Saylors best quotes: https://graciousquotes.com/michael-saylor/