Blockchain technology is one of the next technological leaps similar in effect to what we saw with the internet. Bitcoin was built on this technology. It was a threat to our current financial system and could still be but why not stop it? They tried back in 2012 when Federal Prosecutor Katie Haun was asked to look into it but what people don’t realize is that they lost the battle. Once Katie saw the power of the technology, she switched sides and has been involved with some of the largest players within the space. Instead of 'shutting it down', governments will be forced to embrace it and is doing so now. What started as a cyber punk libertarian movement in response to bank actions will be assimilated into the system and change banking infrastructure. Very similar to how cultures evolve and change over time through technological and religious movements.
Back in 2016, $55 million dollars was invested into a company called Blockstream by companies like AXA Ventures in an effort to control its development and progress. Payment rails were created on top of Bitcoin with Liquid and Lightning. Fidelity is also getting ready to provide access to clients with a Bitcoin ETF. Wyoming is chartering crypto banks, Avanti and Kraken, which will act as custodians. Kentucky is offering tax breaks for crypto mining. All signs of adoption.
About this time last year, March of 2020, Bitcoin was trading at around $6k. Like me, you might have missed out on buying at the very bottom but I’m happy I bought. Bitcoin is divisible into 100 million Satoshi which can be bought in any amount; one can buy for $10, $100, or $1,000 worth. Whether earning Bitcoin through Lolli, weekly automated buys, or a one time purchase, any exposure amount counts. You’ll often feel that you should have bought more. Buy Bitcoin responsibly and only as a part of your overall diversification strategy for establishing long term wealth for those retirement years and your future legacy. GBTC can give an IRA exposure to this asset and more indexes/ETFs will be coming. Realize that Bitcoin will benefit those who are early the most. At some point, it will have a pull back as with any other asset. At this point, this is a five to ten year investment. Some believe we are seeing institutional adoption which will be huge and life changing for some people. Over time as mass adoption increases, the percentage of year-over-year gains will decrease and the cost of Bitcoin will become more expensive to acquire as it stabilizes.
Hopefully you have your financial future already set for retirement. If you do, great. Many have annuities in retirement which can be a good consistent source of income but it often doesn't protect against inflation. Investments are a hedge on inflation. Real estate has a carry cost and is limited to local wages and affected by interest rates. Don’t get me wrong, owning your own home is a vital part towards your retirement strategy. I love stocks but even those can get diluted, have bad quarters, cut dividends, and even go bankrupt. Although you might feel late to the party with Bitcoin being around for ten plus years, your still early, and even 1% position can help long term, don’t count on CPI alone for increases to your social security as a retirement plan.
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