This is an editorial opinion by Konstantin Rabin, a finance and technology writer.
I was one of the lucky ones to find out about Bitcoin more than ten years ago before it got mainstream attention. Sadly, I was also one of the morons who saw this opportunity, didn’t think much of it at first and let it fly by.
In this little story, I want to share the path that led me to invest in bitcoin three times before giving up and become a HODLer. So, these are the main lessons I learned on this journey that I should share with anyone who still doubts BTC.
The Inception
Since I started my first full-time job at an online brokerage in 2011, it should come as no surprise that I have many colleagues who are really into trading and passionate about everything related to investments, technology and progress. financial world. It didn’t take long for me to find a friend named Edgar. We share several interests, especially gaming and a long-standing addiction to nicotine. Even though we work in different departments and rarely have to work together on a project, we still call each other every once in a while to go out and smoke a ciggy, chatting excitedly about life, the universe and more, while sipping nicotine. and fresh air.
One day, in 2012, I encountered one of those “smoke?” message to Edgar when I noticed that the status of Skype there is some sort of gibberish that looks like a cat has walked through the keyboard.
It looks like this: “1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2.”
During a smoking session, I asked, “Is it a cat, or has your account been hacked?” He rejected both possibilities and went on to give a long and complicated explanation of Bitcoin addresses and blockchains.
Edgar passionately explained what everything about Bitcoin is all about, and I immediately became very interested in the topic. Being in the investment industry, I also know a lot of online scams and fake dubious products such as e-gold, which seem, at least on the surface level, to all the same. However, the more he told me about it, the more Bitcoin seemed like it could be more than just some fly-by-night plan; at least, it’s worth a gamble.
The biggest problem is that 2012 is probably the worst year on record when it comes to financial health, and when 3,730,218 public keys already exist in the Bitcoin network by then, I certainly do not have the spare cash to go gambling on some new and unproven technology that promises to “revolutionize ” the way we do money.
Clearly, I was poor. So poor, in fact, that on the last week of every month, a visit to the grocery store would be a choice between buying food or killing hunger with a pack of cigarettes. So, I came to the conclusion that, when eating meat is considered a luxury, gambling in the future of digital tokens is not in the scope of logical spending. At the time, bitcoin was trading for less than $10.
The Doubt
Let’s fast forward to 2015. After a few good years of work, I am an experienced employee and have moved into marketing strategy and execution for one of Europe’s most prominent fintech startups. The workplace is great. Most of my friends are hardcore software developers who work hard to get people’s financial data from banks without asking permission from banks. As if to enforce the kind of work he does, there is even an old Jolly Roger flying around the office. As you can imagine, many of my friends are fans of Bitcoin and everything they want.
As I have grown professionally, the numbers showing my salary have also increased. Finally I can buy cigarettes and food, even have a piece of money that can be set aside for a rainy day. Working in this world, I know more than most that just saving money in the bank is not the way to go and I started thinking about investing my extra money, because I have no real plan to spend.
My colleagues will often mention the term “Bitcoin” at work, but I still doubt that it will be a solid investment. At the time, bitcoin was trading at around $250, just crashing from a high of around $1,000. I approached it with my well-trained investment brain and concluded that bitcoin szx will most likely never recover and will continue to decline until only a few of the most hardened nerds are still clinging on.
I even looked at the Bitcoin dominance graph and saw that, even this fall, they still have a great dominance in the market, which leads me to the conclusion that only cryptocurrency can achieve anything, and there is no competition. it will not manage to grow to something bigger.
“I need a more stable investment product for my savings,” said a wise investor in my mind, so I bought $7,500 worth of gold. Having watched the steady rise of gold since the economic crisis of 2008, I think it is one of the most stable investments.
Rejection
Let’s jump to 2018 when everyone is really crazy about crypto. Besides bitcoin, many other cryptocurrencies are emerging and initial coin offerings (ICOs) are booming, with $6.88 billion raised through ICOs in the first quarter of 2018 alone. Everyone and their mother is talking about Bitcoin and cryptos. You go for a haircut and you will hear about it in the barbershop, go to Facebook and you can not find a single page or group that does not mention crypto in some way or another; even my parents called me and asked me if I have, told me that I should get some because they heard it is likely to rise.
At that time, I was already offering several content marketing services on a freelance basis, and the business was going well because ICO bros would spend money on almost any service offered as long as they could pay in crypto. Although stablecoins like USDT have been around for a while, it is rare for people to transact on them. I see most payments come in the form of BTC, with rates from $4,000 to $13,000 per bitcoin.
At this time I got my first bitcoin, but got swept up in the absolute madness that surrounded the whole crypto space, I decided not to hold BTC and sold it all through people I found through Local Bitcoins as fast as I got it. that. Back then, the daily volatility was huge, and I would catch a cab down to the local Bitcoin exchange as soon as the BTC hit my wallet to cash out for the safety of fiat money.
The Acceptance
The middle of 2018 was a turning point for me, career wise. I quit working full time for other people and decided to focus on building my own company. At this time, I was also able to reverse one of my projects with a large amount, which provided the initial capital to start a new venture, while the funds in my account allowed me to sleep peacefully at night while building a new one. business.
Life is good. I’ve owned some real estate, made more money than I could have and had all the job opportunities I could have. It was up and up.
Then, one day, it just hit me. What on Earth will I cash in on? I have a lot of fiat in the bank and a lot of other investments in the market. How does having an extra $10,000 to my name make a significant difference to my well-being?
I finally came to the conclusion that it will not, but not having bitcoins can very well lead to me being poor again. What if fiat becomes monopoly money? After all, I don’t trust governments very much and the people I’ve met in my life who trust Bitcoin are the ones I trust more than people who deal in fiat. With this in mind, I started saving and holding BTC as my finances allowed. My logic is simple: I am paid in BTC, I should stay without paying money.
What Lessons Did I Learn?
I’m not mad at myself for not getting my bitcoins sooner. Overall, I’m a happy person, and despite the recent crypto season and events like the FTX crash, I’m still very bullish on crypto as a whole. But there are some specific lessons that I took from my journey with BTC that I want to share with you today.
Lesson One: You Are Never ‘Too Small’ To Invest
At the initial stage, I thought it would be great to spend some $1,000 to acquire BTC, but I just didn’t have it and I let the opportunity pass. Overall, if you find an opportunity, take it.
You should not invest all your savings or feel uncomfortable because of the investment, but doing even a fraction of your income should not be too difficult. Can I save $50 in 2012 to get 5 BTC? Most likely yes, but the idea of investing only $50 is a turnoff for me.
Lesson Two: Sacrifice Must Be Made
I had to dig up some past experiences to compose this story because I wanted to get the date right. While doing so, I noticed a $100 hotel reservation made in early 2012. This is for one night abroad, which is pretty much a tourist trip with my girlfriend.
Well, breaking down and spending a lot on a hotel is not the wisest decision. But hindsight is 20/20 and looking back, I could have saved the trip and invested in BTC instead, or I could just go to a cheap hotel and spend the rest to buy BTC. There’s no point in looking back and feeling bad, but remember that making sacrifices today can lead to financial well-being years down the road.
Lesson Three: Balance Your Investment Portfolio
Every investment book tells you, “Don’t put all your eggs in one basket.” Nothing new here. But this was completely ignored in 2015. I had money to invest, and I had the desire to acquire BTC, but for some reason, I decided to go all in one commodity. If I had invested even just 20% into BTC, my return would have been much higher.
Lesson Four: Don’t Chase Historical Prices
One of the reasons why I choose to invest in gold instead of BTC is simply because I think buying gold is “cheap”. I consider this against the fact that I have to pay 25 times more for bitcoin at that point than what I could have paid some three years before. In retrospect, I now realize that the current price is the current price – don’t discount today’s investment just because it looks expensive compared to three years ago.
Lesson Five: Be Part of the Ecosystem
Receiving and holding BTC is easier (mentally) than buying fiat. If you offer services or goods, why not allow your clients to pay in BTC? Don’t make the mistake I did and cash it all in when you get it.
Keep at least a couple of your BTC balance and forget about it now. This will only lead to higher adoption rates and will benefit you and the entire community in the long run.
This is a guest post by Konstantin Rabin. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.