Podcast Transcript of Never Too Late To The Game’s Bitcoin For Boomers Show, October 08, 2020. New episodes every Thursday.
If you think you’re too late to the Bitcoin / cryptocurrency game, you’re mistaken. Bitcoin is gaining acceptance in the US government and government’s around the world. Large companies have begun to move cash reserves into bitcoin. All this is happening while the adoption rate in the US is only at 4%.
I wish I bought Bitcoin back in 2010 because as of today, Thursday October 8th, Bitcoin is trading at $10,627. If I had purchased just 100 Bitcoin at $0.20 a share — I would have $1,062,700 today. That’s what I call a great return.
To be honest, when I first heard about Bitcoin in 2009, I didn’t pay any attention to it — it just seemed too gimmicky to me. Besides, I was busy back then working with distressed homeowners during the mortgage meltdown.
But here we are almost 12 years later and guess what, Bitcoin is still here — so it wasn’t a gimmick and although I do lament a little for not getting in super early and being one of the many Bitcoin millionaires or billionaires like the Winklevoss Twins, it is not too late to play the game.
I don’t know about you but I won’t be waking up at 60, 62 or 65 kicking myself for not jumping in. Nope, there is no excuse. I want to wake up and thank myself for not ignoring one of the most amazing pieces of technology — perhaps even more amazing than the internet itself.
It may seem late but Bitcoin is still in an early phase and like the early days before widespread adoption of the internet, you may stand (no guarantees) to make a significant amount of money and be a part of a global revolution.
Disclaimer: I am not an investment counselor and this is not investment advice. The best investment advice I ever received was: Do not invest more than you can afford to lose and You have to play to win.
Disclaimer out of the way, I am super excited to teach you what I know, bring in experts and also to learn along with you. I believe everyone brings something to the table — especially people who are new to the Crypto game because newbies can sometimes see things that are not obvious to the pros.
The show is structured to cover the basics in the first 5–10 episodes. So newbies can go back and listen to beginning shows to get the basics down.
While this show is called “Boomers for Bitcoin” — all generations are welcome — but especially non-techie newbies.
Why Bitcoin / Cryptocurrency?
- There is a low financial barrier to entry (you can invest small amounts and by fractional shares of any Cryptocurrency)
- You can invest in Bitcoin within a retirement fund
- Large companies are investing in bitcoin
- Bitcoin is rapidly becoming a stable investment akin to gold
- The Adoption rate is growing
What all this tells me, is that Bitcoin is going to pop and rock the world.
A Little Bit of the History of Currency
Some historians believe that the first use of currency happened around 5,000 BC — when metal was used as a medium of exchange. I don’t think this really counts as currency. Trading a nice shiny raw piece of metal for a chicken is more likely what happened. As lackluster as it may seem, it was still important because those early ancestors recognized an important component about shiny metal: it was scarce. Anything that is both scarce and desirable becomes in demand and therefore will have a value in direct correlation to its scarcity. It’s a very simple principle.
It wasn’t until 700 BC that the first coins, The Lydian Lions were “minted” by the Lydians. They lived in Asia Minor (modern day Turkey) and they had some really beautiful gold coins.
Money as we understand it, as a representative of work, value, time or chickens — is very old at this point — ancient in fact.
When paper money was first introduced, it was backed by gold or what is commonly known as “the gold standard.” Today, paper money or what we call ‘fiat currency” is backed by the strength of our government. In both cases, the paper money itself is worthless and both depend on the strength of the government.
Coins, of course, are an entirely different subject but today coins contain a less than their face-value in the amount of precious metal they contain (copper, nickel, silver, gold), making both paper money and coins representative or fiat.
The value of Fiat Currency is based on the stability of a government and part of stability is a healthy economy. The USA for example is the wealthiest country in the world, has an enormous economy, has the world’s most well-funded military and combined with everything else (successful highly valued companies, billionaires, world-class universities, etc) give the dollar its strength and stability.
Even considering the above, the US Government makes mistakes. Our government has to control the amount of cash circulating in the economy (i.e. the amount of money being printed) or it runs the risk of causing inflation or deflation.
If you’ve ever wondered why the cost of things keeps going up, well it’s because of inflation. Inflation is the devaluing of money. One dollar buys less today than what it did comparably last year, last week or yesterday. This is why it’s a bad idea to hoard cash under your mattress or in your freezer. Even though most people don’t think of it in these terms, cash loses value with the passage of time as inflation continues to grow.
On August 15, 1971, the US came off the gold standard. Since then, many argue that inflation has increased with greater speed. A loaf of bread went from $0.25 cents in 1070 to $0.50 cents in 1980 and now, $2.78 (for highly processed white bread). I don’t know about you but I never buy highly processed white bread anymore — but when I do buy bread, it costs upwards of $7.00 a loaf. I’ve paid as high has $15.99 for a loaf of Keto Bread.
Sadly wages in the US have stagnated since around the same time we came off the gold standard (+ /- 5 years), and so have not kept up with inflation and/or the cost of living increase. So, for as “strong” as the US dollar is — there is simply not enough of it in the pockets of average Americans. We can not depend of the government to come save us. That’s something we will have to do on our own.
RISKS: What are the major risks of getting involved with Bitcoin?
- Governments are worried that any alternative kind of currency will undermine and circumvent their system of taxation.
- There are concerns that due to the ease of which Bitcoin and other Cryptocurrencies can be transferred, that it may be used for criminal purposes.
- Of course, this all boils down to regulation.
To more thoroughly explore the current government regulations and answer taxation questions, I will be routinely interviewing both legal and tax professionals who will help keep you up to date on issues associated with trading Bitcoin.
In the mean time, it is important to compare the 4% Bitcoin / Cryptocurrency adoption rate in the US with foreign governments, some of whom have upwards of a 20% adoption rate. The wave is coming and we will see the US adoption rate rise, following in the footsteps of a larger companies who are moving cash into Bitcoin.
In next week’s show, I’ll explore more of the history of Bitcoin, the mystery behind who invented it and we’ll cover vocabulary.
Stay Positive and Be The Change
Younger generations blame us for all the problems we have today, from income inequality, to the continued destruction of our environment and damage to the food chain. Maybe we were a little too busy trying to get our piece of the pie — so much so that we ignored what was going on politically.
While it is too late to go back and change the past, we can, starting today, help change the future and co-create a better world that we all know in our hearts is possible.
If you would like to hear my Podcast of this article, please visit Never Too Late To The Game’s Bitcoin for Boomers Show for October 08, 2020.
You can also find me on Spotify, Google, TuneIn, Stitcher and Apple Podcasts.