I’ve been waxing poetically lately about the merits of investing in Bitcoin, not because I’m a financial analyst (which I most definitely am not, nor do I play one on my pathetic 55 member YouTube channel), but because I’m a full-time crime author who loves to bitch and moan about the peaks and valleys associated with my monthly and semi-annual royalties. So why the waxing? Bitcoin for me, has proven a store of value that has not only doubled in worth over the course of the past year when I first bought in at $3K or so, but because of its volatility, it makes for easy in-and-out trading. It has become a fairly steady income stream.
Like I’ve written in the past, I keep two separate Bitcoin accounts. One for holding, or holdling as the crypto geeks like to say, and one for shorting. That is, selling and/or taking small profits. On average, I can make anywhere between $50-$100 per day on Bitcoin when it’s particularly volatile (right now it’s trading sideways which makes me nada). But there are expert traders out there…and yes, there are bots programmed to trade too…that can reap thousands per day even when the up and down action is slow. I don’t pretend to think I can beat the market, plus I’m terrible at math, so I keep things simple by taking whatever my daily profit might be, whether it’s $20 or $200. Like annual book sales, it’s all about averages in the end.
But why should you invest in Bitcoin now?
In just 165 days or so, the supply of Bitcoin will be halved. Unlike our dollar, or any other fiat currency for that matter, there is a limited supply of Bitcoin. In other words, Bitcoin cannot be devalued. However, it can lose it’s worth if there is a massive sell-off, such as the one that occurred last December/January when the price plummeted by more than 50%. But, and this is a big but, the price rallied not only because Bitcoin bulls were able to recognize a primo buying opportunity when they saw it, the long...