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In todayâs lesson, weâre talking cryptocurrency and how entrepreneurs can use it.
Cryptocurrency like Bitcoins are digital currency that can be âminedâ and collected like fiat money.
According to Bloomburg, as high as 80% of all transactions on Bitcoin trading exchanges consist of bots.
These are automated, computer-driven programs that buy and sell cryptocurrencies for their human designers.
And hereâs a fact: human traders just canât outperform the bots.
Trading is where 90% of us lose our money.
So whatâs the answer? Buy and HODL.
No, thatâs not a typo (although it may have started as a mis-typing of the word âholdâ).
It stands for Hold On for Dear Life and it means you should purchase and not sell, no matter whatâs going on in the market around you.
Letâs look at an example from Think Maverick:
If you had invested $1,000 in Amazon ten years ago, youâd have around $20,000 today!
If youâd invested the same amount in Microsoft, youâd have around $8,000!
If youâd invested the same amount in Netflix, youâd have around $100,000!
If youâd invested the same amount in Apple, youâd have around $9,000!
But if youâd invested the same $1,000 in Bitcoin, today youâd have around $1,000,000,000!
(Thatâs 185,185 Bitcoins times $9,800 per Bitcoin)
âBitcoin has been the best performing asset over the past decade,â says Jenny Tan of Think Maverick, âblowing away stocks, startup, bonds, gold, silver, and any other precious metal or commodity.â
And although weâre still at the early stages of cryptocurrency, many people (including investors, merchants, and financial institutions) are demanding Bitcoin.
Andreas Antonopoulos, a Bitcoin expert, once said, âBitcoin wonât necessarily be the shopping coin. It wonât necessarily be the day-to-day transaction coin. It will be the coin you invest for your retirement.â
So buy Bitcoin and store it safely in your online wallet.
Do nothing for decades, then access it to find itâs worth millions.
However, HODL-ing isnât as easy as it sounds.
Always do your research before you invest in any cryptocurrency.
There are lots of scammers out there on the internet.
As with any investment, educate yourself before you spend your hard-earned dollars.
In our next lesson, weâll talk about Microtasks for Bitcoin.
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