There's really no way around it; INVESTING IS ESSENTIAL for wealth creation, fulfilling financial goals, and creating a stable financial future. Remember last week I explained how 'MONEY' got separated from value. Well, this week, I'll explain how Bitcoin is bringing it back together again. Forget about the motto "get rich or die trying" I'm here to take the suffering out of the equation. The Bitcoin (BTC) learning curve is super STEEP; a lot to learn in a short time to be an early adopter. Building a successful crypto portfolio takes patience. You'll need it because Bitcoin is just the first of many profitable crypto investments we'll discuss in weeks to come.
I consider Bitcoin's history to be more fascinating than the digital currency itself. In short, Bitcoin was invented when an anonymous person/group named Satoshi Nakomoto released a white paper document in 2008 that proposed to solve the problem of Double Spending - the reversibility of electronic payments.
Bitcoin is a transparent, government-resistant, peer-to-peer, digital currency and payment system that allows for secure transactions on the internet. The first commercial Bitcoin transaction was in 2010. With Bitcoin, you don't need a financial institution to create, distribute, trade, or store it. Bitcoin transactions are recorded on a decentralized database or ledger known as a Blockchain. The verification of these transactions on Bitcoin's blockchain is known as bitcoin mining.
As we speak, governments and Central banks worldwide are pumping the economy with unprecedented amounts of money due to the Covid 19 Pandemic. This excessive money printing leads to inflation/ hyperinflation, global recessions, and loss of purchasing power in our economy. Bitcoin is that safe-haven investment we all need to hedge against these phenomena - an alternative to stocks and bonds. Investing in Bitcoin is like hitting the jackpot every year in slow motion. Saving fiat currency is like losing your money in slow motion. The thing is, the overwhelming majority of us are so concerned with 'exchange' – getting paid and paying for stuff (opposite of a HODLER). Just think of it like your paycheck losing value on the way to the bank or even the store.
So now, let's talk about the upside of owning Bitcoin. Like Gold, Bitcoin has a limited supply, but unlike Gold, Bitcoin's supply is finite. There will only ever be 21 million Bitcoins in circulation, and right now, there are already 18.7 million circulating out there. The scarcity of Bitcoin gives it a great 'value storing' function – music to every good investor's ears.
One of the biggest misconceptions is that you need to buy one whole Bitcoin to own this crypto asset. Not true; you can buy Bitcoin in fractions and become a SATOSHI MILLIONAIRE!!!
"Satoshi" or "Sats" is the smallest unit of value in Bitcoin. Whenever the price of BTC climbs, your 'sats' increase in value - you still profit! Think of 'sats' like pieces of a big BTC pie. You can own as little as one-hundred millionths of a Bitcoin 0.00000001 BTC- aka 1 Satoshi (BTC to Satoshi calculator). For those of you who already own whole Bitcoins, dealing in ‘sats’ matters. Some coins can only be bought with other cryptos, and using sats allows you to make transactions for very specific amounts.
When I analyze any crypto project, I look at things like the total and circulating supply, price history, developer and community activity. While there is no magic formula to invest in Bitcoin, I can quickly share one manageable way to start using dollar-cost averaging (DCA). DCA is a straightforward method to offset risk for beginner investors. Basically, you pre-determine a regular/set investment into BTC; for example, you can buy $20 per week. For the seasoned investor, it's time to shake it up and diversify that portfolio! Just look at all the High-Profile Billionaire investors and payment giants like Visa and Paypal who are already buying and backing Bitcoin. Assuming the value of BTC continues to rise, why not ride the consistent momentum that's building each week? See for yourself; the USD keeps collapsing against Bitcoin. You do the math.
It's important to think of 'Money' as a tool to move value across time and space. Fiat currency (you know the $$$ you're storing up in that savings account) is good to move value across space but NOT TIME (convenient as swiping your debit card but money still prone to rapid devaluation). With Gold, you get scarcity and relative stability. As a reserve asset and hedge against inflation, Gold was great to move value across time but not space. I mean, how many gold bricks can one carry in their bag. If you want to talk gains- buy stock! If you want all three in one asset - BUY BITCOIN!!!! Bitcoin is optimal to move value across space and time! (think borders and international money transfers). Bitcoin levels the playing field. It provides people access to financial inclusion -decentralizing money, financial assets, and financial systems.
Next week I discuss how to buy bitcoin on digital asset exchanges and how transactions work on Bitcoin's Blockchain. I will also share some insight on how to choose the best digital wallet to protect your Bitcoin and other crypto investments. You're already ahead of the game.
Until then,
Have a great week and Stay Curious
Zo
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