Wait, I’m sure you’re sick of seeing articles like these convincing you to buy “scams” like bitcoin… but please hear me out. It’s not a scam. It can even save you from potential disasters: no one knows the future.
A New Asset Class
Anything could go to zero. Anything. Companies could go bankrupt, countries could default and/or be erased from existence, and even your health is unpredictable. There’s always that possibility of a “worst case scenario.” As an investor, you’d want to reduce that possibility. And the way to do that is to diversify by different asset classes.
The Stock Market itself can be considered an asset class. Real Estate is another. Precious metals like gold are also an asset class.
Bitcoin (not “crypto”) is a new asset class that was recently discovered by Satoshi Nakamoto. It is outside of The System. It is decentralized, borderless, permissionless, uncensorable, and neutral form of asset. Not even the US and China combined can ban it. That is why it’s valuable.
30 /30 / 30 / 10 Rule
My rule is simple. 30% Stock Market (not just US, but also the World), 30% Real Estate & Other Things, 30% Bitcoin, and 10% Cash.
You don’t just want to invest in the US in the Stock Market. The future’s unpredictable, and the current trajectory tells us that China and other emerging markets are going to takeover US’ economic domination (look up Ray Dalio’s thoughts on this). It has already shown signs of weakness, and will only continue to weaken as time goes by. Nothing stays forever. So it’s important to separate our attachment to nations and remind ourselves of our goal: to make money & not get wrecked.
Life’s short, so it’s important to enjoy it. If you have something to buy, make sure it’s worthwhile – and having a property is a great investment that you can enjoy. And by property, I mean any kind of tangible property. Whether that’s a house, a condo, or even collectible watches like Rolex or Pokemon cards.
As I’ve mentioned, bitcoin is outside of The System. A rogue government could threaten you, and confiscate your stocks, house/condo, or even your hard-earned cash (via inflation). So you can protect yourself with bitcoin while maintaining the wealth you’ve been building for yourself and even future generations.
Finally, cash. It’s only temporary as governments try to figure out what to do with bitcoin – ban it, or make use of it. Hopefully, the latter, since it can be good for them too! If you’re feeling optimistic, you can go 100% cash/fiat-less. If you need it, you can just use your bitcoin as collateral for cash.
Conclusion
No one can predict the future. Investing is risky, so you need to diversify to reduce risks. If bitcoin is truly outside of The System, there’s no reason not to include it in your portfolio. When in doubt, go & learn about it.