Dear Mom and Dad, "Slow and Steady" wins the Bitcoin race
I just watched an amazing video on the state of the Bitcoin market and investing strategy by Dave Levine. Dave simply gives his honest opinion, based on his experience. He is clear, direct, and makes a ton of sense. No hype, no technical chart analysis, no conspiracy theories.
It's one of the best videos on investing in Bitcoin I've ever seen - and I've watched thousands over the last few months (literally).
In fact, this video struck such a chord with me that it inspired me to email my parents. Typical baby boomers who think "blockchain" is something like legos, and tend believe everything they hear in mainstream media (bitcoin is like the tulip bubble, beanie babies, etc.). They purchased just a little bit when Bitcoin was "down" to around $14 or $15K, then have sadly watched it steadily go down...and down... and down....and well, you get the idea. Their mistrust of cryptocurrencies - especially investing in them, is completely understandable..and I feel that many others are in the same boat.
Even if you completely understand blockchain technology and its potential - and let's be honest, I don't think anyone understands it 100% - the recent price action is still incredibly tough for even the most seasoned investors to swallow.
That said, without further ado, here is the letter I wrote to my parents:
I realize bitcoin is probably the last thing you want to think about right now, and I totally understand... but I think it's REALLY important if you watch this video. It's around 20 min, this guy who's been investing in Bitcoin for a few years gives an excellent perspective.
He's clear, easy to follow, and doesn't get technical. No hype, just solid advice from his experience.
He talks about dollar cost averaging, and the best time to do it is actually in the "boring" period as he calls it, which is now. I agree with everything he says. If you only watch one thing, please watch this:
If I was going to start over, I'd do exactly what he suggests - while Bitcoin's price is low, continue to invest a reasonable, fixed amount every week, (ie, $100) no matter what the price is. I'd keep doing this until Bitcoin is finally above $9-$10K again...once that happens, I'd stop putting any more in and enjoy the ride back up.
Here's the video
Even if you don't want to invest another cent, because of its volatility, please still try to watch the video. It really helps put the crypto market in perspective!
Love, your #1 son