Welcome to car talk. This is not talking about cars, this is talking inside of a car. Today’s topic, yesterday I bought Bitcoin. And you’re saying to yourself’s, or out loud, Tyler, you’ve done two videos against buying Bitcoin, you’ve done a couple live things talking against Bitcoin. Yes, all that is true. I’ve been thinking a lot about it lately. I’ve changed my position. I’m not strictly anti-Bitcoin, or Ethereum, or Litecoin, or Blockchain, or anything like that. I am more of a… If you can afford to lose it, it’s not the worst idea to do. Am I the kind of believer that would say, oh it’s gonna take over the world and topple countries, and all this, not exactly. Not exactly. Blockchain, in itself, is very important, and powerful, and transformative. Bitcoin and other cryptocurrencies, maybe not. They’re both on top of the same kind of platform, so to say. That’s like saying, Netscape would change the world, versus the internet. Not the same thing. But, I did do videos against it and then I bought some last night. I bought Bitcoin, Ethereum, and Litecoin yesterday. Through the app Coinbase, very simple.
I know I could’ve done more searching, maybe got a lower commission rate. But what do you do? Ease of use, time is nice. So, I got that and I had thought… A lot of things about it. One, how am I gonna tell those people that follow me? Because I’ve been going against it, and here I am on the opposite side if it, now. So, I’m not super strong into it. I don’t have much in my portfolio of anything in there. I’m not saying it’s gonna change the world. But my new position is, if you can afford to lose the money, it might not be the worse thing to put it in there. And my reasoning for that is based on one thing, which I analyze almost everything I do in the business and money world with it, the risk reward. There is a risk, it will go to zero. Yes, that is a risk. All cryptocurrency might become massively illegal, it might go to zero, the bottom might fall out, it’s a bubble, that might happen. They might go to zero. There’s also a possibility, as far as a reward, they might double in the next year, they might go 10 times in the next year, they might go 100 times in the next year. This stuff is not impossible with this crazy world of cryptocurrencies.
So, I try to formulate in my head, what is the likelihood it might go to zero in the next year? I don’t know any way to quantify and measure that, the way they’re predicted. But it’s a possibility of going to zero. It’s also a possibility that in six months, they all could be worth five times what they are right now. I also don’t know that probability. But, I had to follow my intuition because it’s treated me so well in the past. And even though my intuition has been wrong sometimes, the value of the times I’ve been right, have far outweighed the value in costs of the times I’ve been wrong. So, I’ve bought some Bitcoin, and Ethereum, and Litecoin yesterday. And no, I don’t know what’s gonna happen to those in the future. I don’t know what they’re gonna be worth in a day, a month, six months, a year, five years. If you can afford to lose it, it’s not the worse thing to put your money in because the risk might just- sorry, I’ve already messed it up. The reward might just outweigh the risk.
That’s what my intuition says, that yes, it’s not guaranteed to go up, or guaranteed to go down, or anything like that. But my gut says, the upside, the potential upside, is more valuable, in my gut, than the potential downside. So, I have changed my position on cryptocurrencies. And everything I’ve said before is true. They’re still not super long term, in my mind. They still play on some of the weakest links expecting to make a million dollars overnight. They still might get regulated, or have the government try to stick their nose in everything. All that is still true. All of that is still true. However… when I really think about it, and even more so, follow my gut instinct, my intuition, and think about what is the possibility of where they might be in a year from now, what could they be worth, what’s the likelihood they would be worth that? And on the flip side, if they go down, is it worth throwing a little money there to see what happens? For me it’s yes, for you it could be no. For some people, the thought of throwing maybe, $10000 in a cryptocurrency might sound mind-boggling. For me, it’s a risk I’m willing to take to… See where the chips fall, where they may.
Because proportionally, that’s less than my income, than many peoples. And less than a lot of peoples. Some would say, throw $100000 and see what happens. And that’s cool too. So, you do you. Don’t do me. You do you and… You decide what the risk, and the possibilities, and the feel is, for you or not. I’m still not a strong buy. I’m not saying put everything in there, ’cause I don’t think that’s where it’s at. But I am confident in saying that, for me, for my family, for my future, my families future, for some money that we could afford to lose, I think the upside might outweigh the downside. Could go up, could go down, could go sky high, could go to zero. I don’t know. But the risk is less, in my mind and my gut, than the reward. And that is why yesterday, I bought Bitcoin. Car talk, Tyler Douthitt.