Why I Do This
In March 2018, I turned my back on crypto. I was done! I was so disenchanted with all of the scammers, manipulators, and products that had zero product market fit. I spent the next 2 years committed to working on something that had real product market fit. There was even a time earlier this year that I worked for a company that helped startups prove their product market fit.
Well, I finally found it. I found Bitcoin again and I think it has the most product market fit than any other asset in the world today. You would never guess the battle I’ve gone through to get the courage to post about my conviction around Bitcoin and crypto everyday. There’s a lot of negative connotations that come with being associated with Bitcoin and I wasn’t sure I was ready to own up to those. But I finally came to terms with who it and have 100% confidence that what I am doing is helping others.
I had no idea the impact of my loud mouth until just last week. I had a conversation with a friend of mine who told me the impact my nudges to buy Bitcoin were for him. He recounted the fact that he was miles away from his financial goals. He was living in the city, paying an exorbitant amount on rent, nearly $100,000 in student loans and about $8,000 in his retirement account. He figured that $8k wasn’t too much to fret about and decided to put it in $GBTC (Grayscale’s Investment Trust). A year later that $8k turned into over $90,000. He sold and was able to pay off his student debt and pay the bills as he experienced several months not working due to health issues.
He said this changed everything for him. It gave him a new future! I didn’t let me know, but I was crying on the other side of the phone. So much of my desires are around helping people, and most of the time you have no idea the good you’re doing.
So I will continue to preach Bitcoin because I know it will help people. Why? Because governments are printing trillions of dollars, which is robbing people blind through inflation. And Bitcoin is the most scarce asset we’ve ever seen and will become the ultimate store of value. Bitcoin has product market fit! I honestly think it is the best investment of the next 5 years. Pass the word along! Which brings me to my next point…
Big News Abounds
Everyday there seems to be yet another big announcement about Bitcoin. Any one of these articles by themselves in 2019 or even earlier this year would have been incredible. But now we are getting a steady stream every week.
All of these have been announced in the last week. It’s easy to get caught up in all the good news and to start thinking Bitcoin is going straight to $40k. It’s important to remember that Bitcoin, like everything else, will not go straight up. I would not be surprised to see Bitcoin dip over the next couple of weeks. I don’t encourage you to try to trade these movements, I just want to make you aware that this type of behavior is normal. It’s also important to remember all these bullish headlines whenever you see Bitcoin selling off, as a reminder that Bitcoin dips will only be temporary.
In addition, Bitcoin isn’t the only cryptocurrency with bullish headlines. Ethereum recently underwent a massive upgrade to Ethereum 2.0. This makes Ethereum faster, more efficient, and secure. Built into the upgrade is an incentive users to hold on to Ethereum long term. Ethereum 2.0 moved miners from proof of work (which Bitcoin uses) to proof of staking. Staking is another term for holding long term.
It’s very likely that Ethereum could outperform Bitcoin over the long term. At the same time, it’s important to remember higher rewards brings with it a higher risk.
Weekly Price Analysis
Bitcoin looks to be rolling over. I will be looking to buy Bitcoin around $15,500 - $16,000. I would love to pick up more Ethereum around $480, but $500 might be the lowest we get.
The next 2 weeks should be quite volatile. Whatever you do, don’t get spooked out of your long term positions. This bull cycle is only just getting started. I just launched my my paid Slack group, where I provide nightly analysis of the crypto market as well as buy and sell recommendations. Let me know if you’re interested.