To Hodl or not to Hodl? That is the question. JUMP!!! The easy money is over! Maybe I’m too quick to judge. But before I get into it, allow me to back up a bit.
In Spring of 2015, I had the privilege of attending a conference with some of the creators/developers of Etherium. They told tales of how blockchain (cryptocurrencies’ underlying technology) would revolutionize the world. A few years before that, Bitcoin emerged onto the scene and started its exponential path. These cryptocurrencies amongst many others held a lot of promise.
And the stories begin to mount: Friends saying they made more than their salary in bitcoin over the past year; Fellow FI bloggers posted dramatic increases in their net worths; News reports of freshly minted bitcoin millionaires;and on and on… I finally jumped on the band wagon in October 2017 after seeing this ridiculous growth.
Fast-forward a few months and I AM OUT! After seeing my aggregate $1700 speculation in Bitcoin and Ether rise to $5100, I rode it back down to $3100 and closed out. A Californian friend and I had a chat about cryptocurrencies and her work with a crypto organization. That conversation and three subsequent discussions chased me out.
- My wise uncle told me a story about setting realistic expectations and knowing what your exit strategy is. My original strategy was to let it climb to $12,000. But after seeing the cryptos’ shaky knees, $3100 seems like a good exit point
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After all, you can’t be greedy. Over 80% in five months. Not bad, not bad at all - Gen Y Finance Guy wrote a great post drawing an analogy to Warren Buffett’s annual letter to shareholders about gold in 2011. GYFG basically suggested Crypto mania was overblown, just like gold, and had no intrinsic value.
- Jon Oliver had a segment on cryptocurrencies last week where he likens bitcoin to $15,000 Beanie Babies, an interview with a man using chicken McNuggets as a metaphor for blockchain, a video of Brock Pierce (The Mighty Ducks child actor turned crypto-entrepreneur) talking about his unicorn wedding at Burning Man, and a HODLGANG rap music video to explain the phenomenon. Enjoy the video.
After all, you can’t be greedy. Over 80% in five months. Not bad, not bad at allIn addition to the above, you can read my post where I list 10 reasons not to invest in Bitcoin, a few reasons I did, and my buying experience: SO I BOUGHT SOME DIGITAL COIN…
I’m all for the underlying technology i.e., blockchain. But as a currency, not yet.
It was fun while it lasted. I’m taking my ball and going home. Maybe you should too?