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Risky Business

I’m a lunatic. Let’s start there. I am in a lot of student loan debt and I have a plan on how to get out. If I liquidated all my investments right now I could be out of debt but I want more. I have a lot of money in metal mining stocks and a lot of money in bitcoin. If a traditional investment advisor looked at my portfolio they’d tell me I’m insane. But I keep making money. I started with around $12,000 in 2017 and today I have a lot more than that.

My brother texted me early in 2017 and asked if I knew anything about Bitcoin. I really can’t remember how I answered but I probably lied and said yes. I bought a whole bitcoin right when he asked me and I remember the price was $5700 at the time. Over the next 2-3 months it just kept going up. I couldn’t believe it. I bought 2 bitcoin in total and spread the second one around in altcoins. I fucked around with litecoin and ripple and made a killing in both of them. I just held them for too long. The year of 2018 was not kind to crypto currencies.

I never understood the economics or protocol behind any of the currencies I was invested in but I was deeply tuned in to the social media landscape. The best way to trade crypto currencies is Twitter. You cannot convince me otherwise. You can look at all the lines and numbers on charts but if you see a currency start trending on twitter that hasn’t pumped than you can make money on it. You can’t get caught holding the bag, however. Once the bitcoin maximalists get exposed to whatever shitcoin is pumping the pump is over. They are the ones capable of highlighting the bullshit in all of the altcoins.

Bitcoin bull runs rule everything in the cryptocurrency landscape. If bitcoin isn’t making money your bullshit altcoin definitely isn’t either. Bitcoin bull runs occur after the block reward halvings happen. Once the reward is cut in half, there is a slowing of the flow of bitcoin into the ecosystem. This makes the bitcoin stock to flow ratio higher which makes it a harder, sounder money. Gold has been used as money for 5000 years due to many factors and one of the most important factors is it’s very high stock to flow ratio. The amount of new gold introduced to the market (via mining) is a small fraction compared to the amount already circulating. This makes it scarce and hard to inflate.

Bitcoin’s stock to flow ratio is currently still lower than gold but once the halving of 2025 occurs its stock to flow ratio will be higher than gold’s. If you think bitcoin is expensive now just wait until then.

After the last bull run I learned my lesson and stopped trading altcoins. I had more money than when I started but it was a wild ride. You can definitely make money by trading shitcoins but its difficult and somewhat immoral. I kept my one bitcoin and started to learn more about gold. I moved the money I had in altcoins into Robinhood and started looking into gold mining stocks. I started watching Cambridge house YouTube videos which introduced me to natural resource financing. I invested in gold and silver mining stocks and made a lot of money with the price action in gold. It’s safe to say that the price of gold will increase but I think I’m going to make more money in bitcoin.

Diversifying is bullshit. If you don’t know what to invest in then just buy the S&P and forget about it. You’ll make decent money. If you want to make big money learn about one specific industry that you think is the future and take a fucking risk.