In 2010, Bitcoin spiked 1000% in just a few months. News reports started circulating of people who became millionaires off a few hundred dollars. I mentioned to my wife that we should buy $50 and sit on it.
Over the next few years, I didn’t think much about it. I largely forgot about cryptocurrency.
Until this past summer. Bitcoin hit $4,000USD for the first time (up from $.08 in 2010, FYI). I woke up one day to an article that showed that a $100 investment in 2010 would have been worth $120 million.
I shook my head in disbelief. That $50 could have made me a millionaire. I decided I wasn’t going to let that happen again.
I quickly Googled “how to buy Bitcoin” and set off to work. I didn’t have a lot of money to spare, so I started small. I bought $15 and watched it for a few days. I looked over the trends. I read about mining. I checked numbers on an Ethereum profit calculator.
Over the weekend, that $15 grew by $3. I had to know what might happen if I got some real money in there.
We didn’t have any disposable cash, but I was desperate.
In what felt an incredibly stupid move, I took out a line of credit. I felt stupid, but I would have felt more stupid to pass up the opportunity to buy immediately. I bought $500. My hope was that my gains from BTC would outpace my monthly payments, and I’d end up with a nice profit.
A month or two later, Bitcoin still climbing, I bought $700 more. I canceled the bi-weekly $10 transfer to my savings account and used that money to by more Bitcoin.
A couple months later, after buying at $4,100, it looked like it was going to hit $5,000. But then, it crashed. The price dropped from $4,900 to $3,000 in a few days.
But in the Bitcoin community, there’s a motto that gets tossed around: HODL. Hold On for Dear Life.
And that’s what I did. I rarely checked the price, but the automatic transfer kept going.
Then, it started to climb back up. After a few weeks below $3,500, it reached my purchase price. Then it kept going.
It broke $4k. Then $5k. Then $7k, all in a single week.
Over Thanksgiving, Bitcoin hit $10,ooo. My investment had doubled in three months.
As of this writing, the price is hovering just below $12,000.
And I’ll be honest: I’m not as much into the blockchain tech and political implications that Bitcoin presents as I am the opportunity to make me money work for me. I’m mostly interested in the security it can offer for my future.
Because one things for sure: it beats the hell out of stashing my money in a regular savings account.