If only I’d bought Bitcoin back in 2012...

Back in 2012, I remember watching an online documentary about the emergence of a new technology that was claiming to be the future of money - Bitcoin - and thinking it was all a scam. Most of the chat around crypto at the time was about Silk Road, criminals and the dark web.  It all sounded very sketchy.  

Later that year, I asked a guy in tech whether he owned Bitcoin and he said, “yeah”, but he also owned servers, fans to cool down his servers, multiple computers at his home and more. In his case, he was mining Bitcoin himself.  It seemed like a lot of effort to buy into what appeared to be a dodgy new currency.

Over time, I asked more people, and their methods sounded way too high tech, too risky, or too difficult to understand.  Looking back at an old Reddit thread which asked the question, “So, how did you buy Bitcoin back in 2011?” the thread bought up comments such as, “I mined it myself”, “I found a guy on eBay sent him my money and prayed I’d get my Bitcoin”. “BitInstant and Moneygram transfers”. “I used Mt.Gox and lost it all”, “I used PayPal”.  There were numerous ways that people had acquired it, but nothing I personally would have done at the time.

So, when I hear people saying, “I wish I got into crypto back in 2011/ 12…” I guess they’re considering it through today’s lens.  Now we have Exchange platforms that allow you to easily buy and sell and YouTube videos providing detailed how-to’s.  It's so convenient, and if you choose to use a decentralized exchange, a cold wallet and do-it-yourself, it's an actual choice which you have the luxury to make.

So yes, there are those who were brave enough to buy in pre-2012, when the price was as low as $13 a Bitcoin, but I don't begrudge them, I applaud those early adopters who took the time to dig into it, understand the technology and its associated risks.  They found their communities and shared what they were learning together.  They were willing to believe in a thesis that went against the majority thinking.  They put the work in, and while many certainly lost out, many also reaped the rewards.  So, in general I say, don't beat yourself up if you didn't get in at the start.  It wasn't easy to get in, and if anything went wrong, still as today, you’d have no one to turn to if you lost it all. 

Comparing today to back then makes little sense.  But we appreciate the early adopters whose efforts have given us the infrastructure we see being built today, making digital assets more accessible across the globe to almost anyone who wants in.

Today’s Takeaway:

It’s easy to look back and say “if only”. As an investor, it’s a common feeling that you can’t spend your time entertaining. Simply learn the lessons, the past trends and the patterns. This will help you make informed decisions and give you a better understanding of the asset that you want to invest in.

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The content of this newsletter is strictly for educational purposes and does not amount to professional advice. It's not a substitute for independent financial advice from a professional who can advise on your circumstances and individual situation.