Bit Coin Hysteria
Ooh look! A clever picture of me biting quarter! Get it? BIT COIN? Hahaha. So witty, I know. More like lazy, as I didn't have time today to find a stock photo of Bitcoin. Selfie time. Anyway.... let's talk bitcoin for a moment, shall we?
You've probably heard the huge gains bitcoin has made in value in just a few weeks. Your $1000 investment from a month ago would be worth over $19,000 as of this afternoon. You may think you are totally missing out on all this money if you haven't bought in yet. In fact, I'm kind of kicking myself that I didn't listen to a Facebook "friend" who was trying to get me to invest $10k a couple months ago. I told him, yeah right! First off, I don't have ten grand laying around and secondly, I still kind of thought bitcoin was a weird scam for computer nerds. But no. He was right. I could have made like $180,000 in just a couple of months!! Grrr.
Today I was listening to the Dave Ramsey show, money guru, on our sister station News Talk 95.1/95.5 and he said he's heard of people taking out mortgages on their homes and borrowing money from friends/lenders to buy into bitcoin. He thought this was a HORRIBLE idea.
My main takeaways were: if you want to spend a small portion of your investment portfolio on bitcoin, great. He figures it is the initial hype and hysteria that is driving up astronomical gains and he almost guarantees it will crash/stabilize at some point. So there ya go.