Picture this: it’s approximately 9:37am on Thursday, a crisp fall day with excitement for the weekend and upcoming football game at TCF Bank Stadium buzzing across campus at the University of Minnesota. The year is 2014, and I am sitting in my Corporate Responsibility and Ethics (MGMT 1005) class trying not to think about what I am doing later that night. Suddenly, my professor begins talking about something that peaked my interest… Bitcoin.
Keep in mind, this was seven years ago so it was not a hot topic and my professor was likely one of the first people in on the futuristic investment. However, he was very adamant about it and good at explaining the upside, hence catching the attention of the entire class.
At that time, the value of 1 BTC was approximately $350. Now, 1 BTC is worth around $37,000 and it has poked its head above $60,000 in 2021. To break it down even more, a $10,000 investment then would be worth over $1,000,000 today. Unfortunately, as a 19 year old sophomore in college I wasn’t able to afford such a purchase unless I was willing to jeopardize my tuition payments and groceries for the next year. I still kick myself for not even at least talking to more people about it or getting in with any extra money I did have.
With that said, I am glad I’m involved now and it is not too late to get in on crypto – as a matter of fact, it’s still early. You don’t need a lot to get started and it is likely a better option than having money sit in a savings account that earns (on average) a measly 0.04% APY.
Obviously cryptocurrency isn’t only Bitcoin, there are thousands of “coins” to choose from. A good comparison that stuck with me is to think of cryptocurrency like the stock market. The total value of stock market currently is about $90 trillion. The current value of crypto just made it above $2 trillion. This proves how young it still is and the growth potential for years to come. Thinking about it this way also helps promote diversification – which is super important when investing.
The market cap for Bitcoin alone is around $700 billion, Ethereum is next at around $280 billion, and all other coins make up the rest. In other words, Bitcoin makes up a very large portion of the market and is the tide that rises all ships. There are a lot of ships, and it is important to do extensive research before determining which one(s) you will take. The important thing to remember is to not get off even if you get seasick or your ship starts to sink a bit. A lot of people think of crypto as day trading or consistent buying and selling, but the long-term potential is what entices me.
If you don’t know where to start, I would advise you to follow accounts in the industry on social media, download a simple and secure app like Coinbase or Robinhood, and start having conversations with people about the market(s).
Disclaimer: I am not a crypto or financial expert by any means, and investing isn’t for everyone. I am simply trying to share knowledge through my story and get conversations started for people that are interested or new to the concept.
Cheers to all my readers, and please come back for more next week.
Brady
Brady Arthur Homes and Drones 