Why You Should Allocate 5% of Your Money to Bitcoin

Why You Should Allocate 5% of Your Money to Bitcoin

The biggest fear people have when buying bitcoin is they’ll lose money. Said another way, folks fear the volatility in bitcoin.

Let me make this really clear, I guarantee at some point in your bitcoin ownership journey, you’ll suffer horrendous paper losses.

Not little losses, but gut-wrenching, puke-all-over-the-keyboard, spouse-will-hate-you type of paper losses. I’m talking about 50%, 60%, 70% and even 80% pullbacks from your entry price.

I guarantee it.

No matter what price you paid for your bitcoin — whether it’s $1, $10, $600, $400, $1,200, $5,000, or $30,000 – you’ve had to live through truly horrifying volatility...

Volatility is so bad that it makes you look and feel like a horse’s ass for trusting your money to bitcoin.

I need you to come to terms with this. I need you to give up the idea that you can buy bitcoin at such a perfect price that you’ll never experience a violent price reversal.

That price doesn’t exist.

To make life-changing wealth from bitcoin, you must embrace its volatility as a feature, not a bug.

You harness this volatility to your advantage by dollar-cost averaging into bitcoin. By doing this, you will pay “cheap” prices, “expensive” prices and prices in between. Over time, though, you’ll get great prices on balance.

That brings me to my next piece of bitcoin advice: Let time do the heavy lifting.

The price of bitcoin moves in massive one-way spurts. I wish I was smart enough to know exactly when those spurts would happen. I’m not. I don’t know anyone who is.

When it comes to bitcoin, the smartest thing you can do is buy it when the price is down a lot. And let time do its work.

I’ve learned to over allocate to bitcoin when it is at its most hated. This is not easy to do. But it has made me many millions of dollars in profits.

When something in the investing world is emotionally easy to do you probably shouldn’t do it. When something is emotionally difficult… that’s when you should really press your bets (while respecting your risk management parameters of course).

Understanding Non-Linear Returns

When I first recommended bitcoin in 2016, it was around $400. Just recently, it hit $72,000. Over the last eight years, that works out to be a 91.39% compound annual growth rate.

Impressive right? But you know what was not impressive? The two 85% drops in value I had to deal with… and the countless 30%, 40% and 50% drops along the way.

The endless fear, uncertainty, and doubt (FUD) relating to China banning BTC mining… fears of hacks… fears of a U.S. government ban… banks refusing their services to bitcoin owners.. going through the endless bitcoin forks and the block size wars.

None of that was easy to go through. Yet, here we are eight years later. And me and my early readers have seen our money grow 180x in value.

Again, none of that was easy.

That brings me to my third and final point of bitcoin ownership. Bitcoin’s returns are non-linear.

That means the 91.39% compound annual growth rate me and my early readers have enjoyed since first buying bitcoin didn’t happen in a straight line. Some years we were down 85% and others we were up over 300%.

Massive asset price appreciation is non-linear by nature. Once again, that is a feature of getting rich from assets – not a bug. To get mad at that is to get mad at the very nature of how asset wealth is created.

If you want to vastly improve your economic circumstances, you must come to terms with the world AS IT IS… not as you wish it to be.

Real wealth doesn’t come to a person by accident. It comes through the diligent adherence to a set of well-worn principles that I will continue to share with you as we move along this wealth journey together.

Please understand that real, lasting wealth seldom comes overnight. Occasionally it does… but that’s rare. Lasting life-changing wealth comes from holding a handful of great assets (in this case one asset) over time.

I believe before the end of the decade, (that’s just seven years away) bitcoin’s value will at least rise to the value of gold.

That will put bitcoin at $700,000 per coin. As of this writing bitcoin is at $68,000. If you buy bitcoin today at $68,000 and sell it at $700,000 seven years from today, you will have captured a compound annual growth rate of 39.53%.

What assets do you own that offer anything close to that type of compound returns?

My bet is very few, that’s why I advise EVERYONE to have at least 5% of their net worth in bitcoin. And leave it alone.

Yes, bitcoin might drop 50% tomorrow. It could also leap higher by 50% tomorrow.

I can’t tell you what the price will do on a single day. But over time, my research suggests you will continue to see much, much higher prices ahead.

Time can be your friend or your enemy.

If you hold great assets like bitcoin and you keep adding to them incrementally, time can become your greatest wealth-building ally.

Friends, use your time wisely. Buy bitcoin and keep dollar-cost averaging into it. There is still no traditional asset in the world that can make you as much money as bitcoin can over the next seven years.

Let The Game Come To You!™

Big T