On a Friday night about 4 years ago our family had my brother-in-law and his family over for pizza. He picked it up and paid for it on his way over. As I’ve mentioned in previous posts, I tend to share bitcoin with everyone I meet – often giving small amounts away. When he arrived I naturally offered him bitcoin instead of dollars.
This is when bitcoin was trading at about $10 each. I had previously purchased several of the Casascius physical bitcoins (no longer sold) that were loaded with one bitcoin and I had a few of them on me (we now offer our own version of unloaded, collectible “coins” at BitcoinMint.com).
He shrugged and said “Sure, why not?”
So I gave him a 1 bitcoin Casascius coin which is now worth over $2,400.
He’s kept it in his wallet and hasn’t really thought about since. Every once-in-a-while I’ll call him up and say, “Hey, guess how much that bitcoin is worth!” and we both have a good laugh.
This last time he finally said, “I guess I better put it in a safer place now!”
The amazing thing to me is that – with a total supply of only 21,000,000 – the majority of the people on this planet will never own a full bitcoin. If it continues to go up (as I think it will) it may someday be worth enough to retire on – or you maybe you’d just be able to buy a whole bunch of pizzas.
The funny thing is most people believe the price is too high and they neglect to take a position for another 4 years.
Here’s what I think…if you want really low risk, consider taking just 1% of your savings (or net worth) and buy bitcoin. In the worst case scenario it becomes worthless and very little harm is done. But what if it goes up another 100x like many of us think it will?
You will have doubled your portfolio while risking only 1% of your assets. Not a bad trade.