Back in August I was very close to getting 1 BTC. Unfortunately for me, I went against it. Digital currency was definitely on my mind as I was getting to know the fundamentals: https://duffmoney.com/2020/08/14/buy-exchange-and-store-bitcoin/
The plan was to buy 1 BTC and I was going to hold it long term. I had been told by a few people, that BTC will go above $100k.
My problem at the time was that I didn’t have a spare £8000 (the approximate price of 1 BTC at the start of August).
What I did have was around £8,000 in tax (and VAT) money. The thinking was to use the tax money and then find the money at a later date.
Even if the BTC didn’t go up in value, I could always use my overdraft to pay my tax bill …
If I ended up going with the little gamble, I would have more than doubled my money. I could have sold 0.5 BTC and put the money back into my tax account. And then still had £8000 worth of BTC.
With hindsight, this would have been a wise move. You could say an educated guess …
Why I didn’t
My poor investing decisions from previous years have made me that much more cautious. It reminded me of investing in single shares. And I am not a fan of single shares: https://duffmoney.com/2019/10/04/single-shares-high-risk-and-little-or-no-reward/
Part of me regrets being cautious – who wouldn’t want a quick £9000 profit? But most of me knows it was the right thing to do for me.
I finally understand my relationship with money. I know it gets me emotional. Too emotional! When it comes to single shares, I obsess about the price and am constantly looking for updates. This would have been the case with BTC.
What I do instead
My investments are long term buy-and-hold. When it comes to stocks and shares, I go with a low-cost index fund.
I am convinced my fund will return at least 7% in interest per year. It might be lower some years, it might be higher. But from what I have read, it will average out to around 7-8%. This is based on historical figures: https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp
Holding the fund long-term, will allow me to ride the inevitable ups and downs.
This is the same strategy I have for property. Any rentals I buy, will not be sold and will be passed onto family.
Both of my long-term strategies mean that I am not getting myself wound up over my investments. I’m not obsessing over them like I maybe would with BTC.
If you have any spare money month to month, it might be an idea to get some BTC. You never know, it might get up to £100,000 – for 1 BTC.
Hopefully you have managed to get some BTC over the last few years. You can sell some for a tidy profit. Or you might be more adventurous and hold out for an even bigger return. Either way, BTC seems to be here to stay …