If you have been living for the last few months, you have probably heard of the CRAZE Bitcoin. You have probably heard that in the past year the price of the bitcoin has risen over 2000% (Jan 1 = $1000, Dec 18 = $19000). People are making millions off of this track to "fast money." Why has Bitcoin taken such an exponential hit? Especially in the last few months? To me, many factors, but predominately people's mistrust for the government and the rebellious nature of today's new generation (millennials). Before getting into the biscuits and gravy of my investment journey, let me explain what Bitcoin is:
1. A form of digital currency created and held electronically.
2. No one controls it.
3. Bitcoin can be used to buy things electronically. It is similar to dollars, euros, or yen, which can also be traded electronically. In other words, it's a form of currency.
4. A software developer named Satoshi Nakamoto first proposed Bitcoin and is deemed the original creator.
5. Bitcoin is created by people digitally, they are 'mined,' using computing power in a distributed network.
6. A lot of users buy bitcoin through an app called Coinbase.
Why did I invest in it?
I wanted to understand what was so addictive about this craze. Personally, I have zero experience with investing. I have never invested in the stock market, I don't have any mutual funds, and I don't know squat about investments.
In hindsight, I wish I got into this earlier. I found that if you don't invest too much, this can be fun.
With the bitcoin market changing with so much volatility, it's hard to not keep your eyes on it; I find myself checking the market every hour. I found that there is a correlation between how I'm feeling and how the bitcoin is doing. This is addictive and fun to be a part of. The good thing is, anyone can be a part of this, all you need is 1 dollar and a can-do attitude.
With all the hype and volatility, I have learned 5 great, hard lessons about life:
1. Don't put all your eggs in one basket.
2. Things change overnight without any warning.
3. Taking a chance can be fun.
4. There's no such thing as fast money.
5. The longer you wait, the better it gets.
With all said and done, I highly recommend people taking this opportunity and investing in Bitcoin. It's a good chance to get your feet wet and understand how volatile the market can be. Who knows, you might make money! All you need to do is install the Coinbase app and invest away. Best of luck. You got this!
