Do we all agree that Wall Street is a scam? If yes, let me share my experience and observation mainly of the crypto market.
All of us have heard stories about random people who made tons of money buying bitcoin at $20. Or maybe you’ve watched the latest youtube video with the best ICOs for 2017 which became 100x but you missed them. Guess what? Most of those stories are just stories. The ones that are true… well, they’re rare. And besides, there will always be a few people who get lucky. We often forget that behind a $100 million lottery winner, there are millions of people who lost money "investing" in the same product. Does it sound like a pyramid scheme?
That’s why the best way to make money in this market is to hold forever. And having an arsenal of diverse strategies is the key to unlocking enormous wealth.
I personally receive hundreds of emails offering me strategies that will beat the market and will make me rich. They claim to have the best data, insides etc. But the only folks that make millions without these advantages are the ones like Warren Buffett and Bill Gates. They’re committed to owning a stock for a long time.
But which crypto is good for a long hold? Call me a maximalist, but to me, only bitcoin will exist 20 years from now. The most important investing quote Warren Buffett’ has ever said is, “If a company will be here in 20 years, then it is probably a good investment now.”
Proof of work is actually the innovation here. And bitcoin will last because it is disturbing the most censored and centralized sphere in our modern world - the monetary system.
Do you know that Warren Buffett has never sold a share of Berkshire Hathaway since 1967? Bill Gates sells a little nowadays, but basically held his Microsoft stock for decades.
Every great investor will tell you the same thing. They’ve all used “compounding” to make a significant portion of their wealth.
In short, compounding involves reinvesting the money you make from an initial investment in order to make even more money. As you keep reinvesting the money, the effect multiplies. Over a long period, you can earn staggering profits on your original investment.
Here comes a significant difference between bitcoin and traditional stocks. Stock companies can offer you dividend, bitcoin DOES NOT OWN YOU ANYTHING!
So how we can create the compound effect in bitcoin? Actually we cannot do it. That is why the smartest way to increase your wealth through bitcoin is by buying it on consistent basis. Promise yourself, 10% or more, of your income goes into bitcoin NO MATTER the price and in 20 years we will enjoy our retirement together.
Just remember: don't get rich quick, get rich for sure.
Till next time,
Ivan
