From the start, successful entrepreneurs have been split on whether they should invest in crypto. Some raised an eyebrow, assessing it as nothing more than playing virtual slot machines. Crypto didn’t seem to add value, a
nd thus, was not a good investment, they said. They pointed to stocks, real estate, and building businesses as the better opportunity for serious investors.
Others swore that crypto was the next big thing. They threw their dollars at Bitcoin and other cryptocurrencies with the hopes of making it big.
Ryan, however, didn't jump on the crypto train. "It's sexy and hot to talk about how someone made a billion dollars investing in a new thing. But that's not how the vast majority of wealthy people got rich," he explained. So many of us likewise continued to thumb our noses at Bitcoin for the next several years.
But the government's response to the pandemic changed a lot of minds, including Ryan’s.
If you’ve been wrestling with whether you should invest in crypto or not, keep reading.
The perspective you’ll hear can help you make your own decision, as the owner of a 7-figure business. It’s an important decision to make, and we want to share this with you because it’s our goal to help our readers and students to build a 7-figure net worth as well as a 7- to 8-figure business.
You may want to watch this video as well.
"Well, Bitcoin, I owe you an apology."
When Ryan noticed Bitcoin gaining popularity, he assumed it was a passing trend. And in the end, he thought people would lose a lot of money. But in early 2021, Ryan made a heart-wrenching discovery. Had he invested $1,000 into Bitcoin a decade ago, it would be worth over $100 million today. That's right—$100,000,000.00.
No one can travel back in time to take advantage of missed opportunities, but you can learn from them. Ryan decided to do just that.
Over the next few months, he consumed as much information about crypto to educate himself on the market. Although he's been publicly bearish on crypto investing, Ryan needed to know why something not backed by anything was worth so much to society. Why were so many people so eager to invest in crypto?
It was easy for Ryan to wrap his head around the value of companies. They provide services, solve problems, create jobs, and boost the economy. Besides, isn't the US dollar backed by gold? Well, not anymore. Only the government backs it, which, as we all know, isn't who you want controlling your wealth.
Fiat Is Pure B.S.
During the economic meltdown of 2007, 2008, and 2009, Ryan had a front-row seat and watched in horror as the government bailed out banks and stimulated their way through the crisis. Their response only inflated the next bubble. "I wonder when we're going to have to pay the piper," he pondered.
As it turned out, the world didn't have to wait for very long.
When the pandemic terrorized the world in 2020, the Federal Reserve responded with more bailouts and stimulus checks. Sure, many people thought this was the right answer. But as someone with an economics degree, Ryan knew this was a terrible decision.
Printing more money is like putting a Band-Aid on a paper cut. It makes you feel better at the moment, but when you rip it off, it hurts like hell. Increasing the amount of legal tender in circulation only devalues the dollar over time.
Bitcoin became a shelling point—a point of reference when there's turmoil. During times of chaos, you crave security. Something reliable that won't go up in flames as everything else burns to the ground. And the world, especially younger people, agreed that Bitcoin and other cryptocurrencies were that shelling point. Crypto investors see it as a hedge against inflation.
All the Cool Kids Going to the Moon?
Elon Musk is extremely vocal about his views on crypto. Followers trust his financial advice and business savviness. Tesla 10x-ed in a single year. That's why a few ominous tweets about Dogecoin going "to the moon" made the meme coin skyrocket 800% in just 24 hours. But Musk is also critical of cryptocurrency. He once tweeted that Bitcoin was almost as B.S. as fiat money.
That Bitcoin analysis made Ryan pay attention. Fiat isn't trustworthy; it outsources our purchasing power to the government. And they continue to mismanage it. Their systems only make the rich richer and the poor poorer. It's not capitalism at work, but rather, the government destroying things, as they usually do. Another reason to invest in crypto?
As an aside, check out how this organization is using crypto to clean the oceans.
HODL or Eat Your Losses?
This year, the market showed us just how volatile it could become. Prices hit record highs, with Bitcoin reaching $64,863 on April 14, 2021. Just a month later, the bubble suddenly popped. In May, most coins fell by half or more, leaving many investors to ponder whether to buy the dip or eat their losses.
Only you can make that choice. But if you base your decision on what you think others will pay for it in the future, it's a bad investment. It's better to only invest in something you plan to hold for at least five years. If you jump in hoping to sell next year, you're merely a speculator, not an investor.
The market has since rebound, and while Bitcoin hasn't reached its previous high, it once again surpassed $46K in August.
Should you invest in crypto right now? Before you pull the trigger, ask yourself, "Am I buying something I see real value in?" If you answer in the affirmative, then go for it. But make sure you also have a decent cash flow or some passive income to help you withstand the price fluctuations.
And if you still feel wishy-washy about the volatile cryptocurrency market, then consider buying into the companies building the infrastructure supporting these coins. These businesses create value for the people using the platform, and you won't deal with as much volatility as in the cryptocurrency market. Coinbase alone shattered its expected 2021 Q2 revenues, bringing in $2.2 billion instead of the forecasted $1.85 billion.
Crypto Is Here to Stay
Crypto is no longer something only computer geeks understand. Bitcoin, Ethereum, and other up-and-coming organizations will change how we transact with one another. Even successful companies have taken notice of the market and have holdings in Bitcoin.
In 2020, companies started carrying Bitcoin on balance sheets as an asset—as an alternative to cash. They see the value of fiat going down, but other assets are going up. It makes sense for companies to have their savings held somewhere that will protect their purchasing power. And Ryan decided to do the same.
While once a true skeptic, Ryan now invests a small percentage of his portfolio in crypto. "Bitcoin is the best that we have to satisfy the demand for a new financial system," he explained. He holds Bitcoin and an even larger amount of Ethereum. Other networks also compel him. Ryan intends to build a more diverse base of holdings to keep—whether the price goes up or down—for the next ten years.
Today, Ryan has come full circle. There is a need for a more decentralized currency. He sees the need, purpose, and demand for crypto, regardless of whether Bitcoin is the winner or not. The government can't tamper with it like fiat. Ryan doesn't know which coin will reign supreme, but as he jokes, "Please don't be Doge."