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Interview: Neal Schmidt, Started Investing At 12, On Young Adult Money



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Neal is pictured on the left.

If you have or haven’t noticed, I’ve been writing more about personal finance recently on Take Your Success.

This is because I believe that it’s never too early for you to gain financial wisdom and to start investing. The sooner you have a solid foundation in personal finance, the quicker you can become rich and be financially secure.

But, as you’ll see in my interview with Neal Schmidt, many young adults decide to spend their money without a purpose and put off investing for later. And in doing so, they lose one of the most important investing advantages: time. Then these same people start investing in their 30s, but can’t make up the tens to hundreds of thousands of dollars lost from stunting the power of compound interest.

To help you out, I decided to interview Neal because he has experience investing in the stock market at the early age of 12, is clearly passionate about the subject, and promises to give you significant value.

Remember to check out my key takeaways after the interview. Now let’s hear from Neal Schmidt.


Brian: How old were you when you started investing? And what attracted you to this at a young age?

Neal: I began investing when I was about 12 years old. My father showed me an article that aimed to highlight the power of compounding interest. The article was about two people who were investing in a Roth IRA. The first person, who I will call Paul, began investing at 22 by putting $1,200 per year into his Roth IRA. The next person, Mike, began at age 30 or so and put the maximum contribution every year until retirement (was $5,000 at that time).

Despite the difference in principal both had been adding to their retirement accounts, by the time both reached the retirement age of 59 1/2, Paul’s account (who started investing earlier) still contained a few hundred thousand dollars more than Mike’s. While I know these numbers are not exact, the point remains. It just goes to show that there is no substitution for time when investing.

Brian: Who did you learn and get inspired about personal finance/investing from?

Neal: My parents were undoubtedly the driving force in getting me interested in personal finance. It was frequently the topic of discussion around the dinner table, and my Dad would always reference things he heard on The Dave Ramsey Show or read in the book “The Millionaire Next Door.” He would always talk about how it is a huge misconception that “the only wealthy people in the world inherited their money.”

In “The Millionaire Next Door” Thomas Stanley and William Danko state that 88% of America’s millionaires are first generation wealth, meaning they inherited NOTHING. That fact really stuck with me and made me realize that attaining a little wealth is not impossible.

Now, my goal isn’t to become a mega millionaire, but I certainly would like to live comfortably, be able to send my children to their dream college and have something left over to give back to society. As Dave Ramsey always says, everyone has the ability to change their family tree, and I would love to do that.

Brian: How does investing at an early age, for you an extremely early age, make such a big difference?

Neal: As I said earlier, there is no substitute for time when investing. The best time to start investing was 10 years ago; the next best time to start is today. Compounding
interest is an incredible thing. When started early, retirement accounts such as a Roth IRA, Roth 401k or standard 401k can reach the high “hundreds of thousands” and in some cases even grow into the millions.

The biggest pieces of advice I can give to someone who is beginning to think about investing are start saving for retirement as soon as you are out of debt, and when you make that IRA or 401k contribution, forget that money even exists.

The worst thing you can do for your retirement is pull money from those accounts early. Not only will you incur stiff penalties, but you will be losing out on the compounding interest that money would have gained if it was left alone.

Brian: What’s your investing strategy?

Neal: Being only 22 years old, I’m an aggressive investor, since retirement is so far off. I am currently invested in 100% stock based mutual funds. Earlier I had made a statement about making contributions to retirement accounts and “forgetting” about them. That is because if I woke up tomorrow and there was a huge downturn in the market causing the value of my mutual funds to plummet, I really wouldn’t be that worried, since there is so much time for the market to recover before I even think about retirement.

Despite the Great Depression and Great Recession of 2008, the stock market has always trended upwards, and depending on which resource you ask, its historical rate of return is somewhere around 7 percent.

As I move closer to retirement age and my retirement accounts have grown to a more substantial size, I will move to more a moderate/conservative investment strategy. Until then, I am willing to be a more aggressive investor in order to gain the highest rate of return I can. The higher the risk, the higher the return.

Brian: Do you strictly invest in the stock market, or are you pursuing other investment areas like real estate?

Neal: Currently, I am focused on maxing out my Roth IRA contribution, contributing to my 401k and building a safety net that I am comfortable with. Many people, including Dave Ramsey, consider 3-6 months of expenses to be a sufficient safety net, but in my opinion, that amount should be whatever makes you feel the most comfortable.

Once I have that safety net built to a level that I am comfortable with, I will absolutely look into real estate investments. Having a rental property is a great way to add a supplementary income, but personally, I would not buy a second property to rent unless I had enough to pay for it in cash. I don’t see the sense in taking out a mortgage on a property in order to rent it to someone else.

Brian: How would you assess most twenty-somethings with their money? And why do you think people our age act this way?

Neal:  Most people our age aren’t too concerned with their retirement. When I ask about retirement savings, often times I hear, “I have tons of time to save for retirement later.” Or “I want to have fun with my money when I am young.”

A lot of this kind of mentality stems from people feeling entitled to new things because they worked hard during college. I know so many people who went out and immediately bought a new car when they got their first professional job; hell, I almost did it myself. I almost bought a 2015 Mazda 3, on which I would have had to take out a $15,000 loan.

Sure, I absolutely could have made the monthly payments on it, but then I would have been putting a huge burden on my monthly take home pay. I wouldn’t have been able to contribute to my retirement, which would have cost me tens of thousands of dollars in retirement income. Just because you can afford something does not mean you should buy it.

Another part of that mentality is that I feel like many people our age do not understand the impact of compounding interest. Let’s take a look at a Roth IRA, for example. If someone were to start maxing out their yearly contribution ($5,500) at the age of 22 until they are 60, they will have paid $209,000 in principal over 38 years.

That sounds like a lot until you take into consideration that you can expect the value of that account to be upwards of one million or more, depending on the rate of return. Compounding interest is an amazing thing, especially if taken advantage of early on.

Brian: What advice would you give to young adults who don’t know where to start with their money and investing but want to become millionaires?

Neal: Read the book “The Total Money Makeover” by Dave Ramsey. I have been name dropping him a lot during this interview, and that is because I truly believe in the debt free lifestyle he promotes. I find his advice to be practical, easy to understand and downright effective.

This book has completely changed the way I look at my financial decisions, and the way Mr. Ramsey explains things makes personal finance seem much less daunting. Now, sometimes he can come across as a bit over the top, but overall, his message has been incredibly helpful.

Contrary to popular belief, becoming a millionaire is a choice, and if you don’t believe me, read this book or listen to his radio show. Becoming a millionaire is not about how much money you make but rather how much you save. By making wise financial decisions, living below your means and investing young, anyone can build a great financial foundation that will bring about what Mr. Ramsey refers to as “financial peace.”

Brian: Lastly, and more out of my curiosity, what are your financial goals?

Neal: Personally, I don’t have a dollar value that I am aiming for; all I am looking for is financial security. I could not imagine how I would feel if my son/daughter was accepted into their dream college, and I had to tell them “sorry, we can’t afford it.” That would crush me.

Or if I had to forgo anything but the best medical care if, god forbid, a family member ran into serious medical issues. Sure, money doesn’t make people happy, but it sure as hell makes the low points in life a heck of a lot more manageable. I don’t ever want to be sitting at the kitchen table with my wife at 4am trying to crunch numbers to figure out how we will keep the lights on, a roof over our heads or food on the table. I don’t want that stress on me, my family or my marriage.

People may call me crazy, paranoid or weird; that’s fine. Those are the things that cause me to be so passionate about my personal finances, and I know that if I start preparing now, I will never have those worries.


Neal and I have similar beliefs when it comes to money and personal finance. So it became no surprise to me when I shook my head in agreement multiple times throughout this interview.

One of my favorite amen moments is when Neal said, “Just because you can afford something does not mean you should buy it.” I think he hit the nail on the head here!

Because the way I look at it is you can spend your money on material items (new clothes, new gadgets, or a new car) that will make you happy only for the short-term, if that. And if you spend all your paycheck each month, you’re essentially going to have to work the rest of your life. Or you can save your money and invest it, so it grows and allows you experiences that make you happy. For example, traveling the world or retiring at 40 to work on your passions.

A second great nugget, where I actually hit my fist on the table and said “Yes,” is when Neal made the comment, “Becoming a millionaire is a choice.” If the year was 1900 then you might need a famous name and wealthy parents to be rich. But in 2016, the opportunity to become a millionaire is yours if you’re willing to save your money and start investing it.

Even beyond money, I believe that success in your work, fitness, health, friendships, and love life all comes down to a choice. So how bad do you want it? Choose what you desire, follow through, and live the life you want.

Readers, do you want to start investing after this interview? What holds you back from getting in control of your money and future? Is money a topic that deserves more attention and blog posts on this site?



Interview: Multi-Millionaire & Founder, Dan Wesley




It’s not every day I get to interview an early Internet power player like this guy.

Dan Wesley founded in 2003 and then exited this startup 8 years later with an 8 figure payout. He’s also been a contributor for top publications like Forbes, Mashable, Huffington Post, and Inc.—among other impressive accomplishments.

Confident that Mr. Wesley is rich in knowledge and you guys would take away some solid insights from him, I asked him for an interview and he happily said yes.

The main topics covered below are financial ones like student loans, credit cards, personal loans—you know, that important stuff that ultimately decides how much money you end up with, which controls how free you are to do what you love. And then the interview finishes off with Dan sharing some of his best life lessons.

Getting your money right is a big deal and Dan is going to help us.

Let’s just dive into this goodness so you don’t have to wait any longer.

1. What led you to start and help millions of people financially in the process?

Humble beginnings – I grew up well below the poverty line with the deck stacked against me, like millions from all walks of life, face today. So, I decided to do something about it long before the Nerdwallet’s of the world.

As you can imagine in 1998, Google is, what, 3 years old? Yahoo, Lycos, Netscape are the main events. It took me awhile to get going (2003 is when I really started to publish consistently). It’s been a fairy tale of sorts, as I ended up completely bootstrapping this from a $5,000 tax return to an 8 figure exit.

I still run the business today, the only regret is I only started to scale things (with venture capital) just a year ago.

I could have been Nerdwallet… but I’ll take it!

2. Where do many college students go wrong with student loans and what should they do instead?

That’s a really great question. I’m 40 and while I don’t have college bound children yet, I took student loans to survive. I was the first to graduate in my family with a college degree. So my parents had just as much understanding as I did of student loans plus long term implications. This is a fancy way of saying basically no party had ANY idea what I was getting myself into lol!

But if I had a child college bound today, they would definitely be a beneficiary from my student loan experience. So is it survival? Generational knowledge gap equaling naivety across the board (parent <=>)? The lack of obvious life experience for most college students? You only learn from making mistakes right? Is that inevitable? I don’t know.

Personally, I know I should’ve just stuck to subsidized loans but I ended up taking on unsubsidized as well (I don’t believe these exist anymore and rightfully so). The student loan alternatives: are grants (is Matthew Lesko still around? ha!), employer tuition assistance, military GI bill, and scholarships.

3. Since 1998, when you started helping consumers on financial issues, until now in 2017, what’s changed most about personal finance in your opinion?

Great question! First off, the amount of personal finance information on the web, hands down. They call it “content shock”. Digital information overload plus ubiquity of mobile with always being “connected” (love this graphic…worth a 1,000 words I tell ya).

I read a few years back (2012 I believe), over 2 million pieces of content are published everyday. I can’t imagine how that has grown exponential today. Moreover, I think there’s a form of censorship in play (unintentional in my opinion, explained below).

As the top finance Google results are dominated by brands (nerdwallet, bankrate, thesimpledollar, thebalance) it’s tough for small businesses with better end user value propositions to overcome these behemoths. But I don’t think Google is doing this on purpose—naturally you have so many bad players that Google (as the police officer) ends rewarding the brands that are trusted the most.

If they are trusted the most, you can assume they’re content is commensurate (plays right into Google’s “yo money, yo life” search ranking guidelines).

At the end of the day, the consumer votes with engagement metrics and all Google does is aggregate that against the population of finance sites—it’s that simple in my opinion.

We always pander to the user, not the search engine.

4. Do you recommend 20+ year olds get a credit card? Why or why not?

Can we really stop them? Paraphrasing a great quote, “The only substitute for life experience is being 20”, right?

I’m 50/50 on this. It’s situational – some 20 year olds act like their 40 and others act like they are 10. The key here in my opinion, is limit yourself to just 1 major credit card. You want that credit card as an outlet, safety valve (discretionary or not, things happen and we are human after at all).

In my opinion, no credit card equals no life experience, more risk, potentially more costly to a 20 year olds’ cashflow. (Example: overdraft fee or a late electric bill payment sometimes exceed the interest only payment of that respective credit card.)

In my opinion, a credit card equals life experience if used responsibly; you want that credit card as an outlet, safety valve (discretionary or not…things happen and we are human after at all). Bad credit, as we know, has a nasty butterfly effect when you are trying to finance a car, get an apartment, it unnecessarily complicates your life (I’ve been there begging my parents to co-sign).

Related: Credit Cards Are Your Best Friend

5. How many credit cards do you personally have? What ones? And what’s the purpose behind each one?

I have an Amex Black, Discover, Visa Black. Primary use is, honestly, an additional layer of security (would rather have my credit card compromised vs my bank card).

The Amex Black is awesome for making a point though. I don’t play the I’m-a-multimillionaire-card (you can ask anyone). I’m a pretty laid back, humble guy, but I can totally upend any perceived judgement, underestimation fairly quickly ;).

6. I’m sure there’s a wealth of information you could go on and on about when it comes to this. But what’s your best single piece of advice for a young adult who needs a personal loan?

My single best advice involves one sheet of paper and two columns: pros on the left, cons on the right. Then you can truly figure out if it’s a need or a want.

Use cause and effect exercise so you can identify the drivers of obtaining a personal loan.

Secondary to that, if you embark on the personal loan quest, be sure to shop around. Get at least 3 quotes: 2 digital (like our site or lending club) and 1 brick n mortar (your local bank).

7. Say I’m 27 years old needing a mortgage for my first home. What’s a key point I need to know to come out with the best interest rate possible?

Due diligence, as you know, many governors in play here. Your credit score and income are two items that single-handedly dictate everything.

Assuming those items are in line, I would advocate for comparative shopping (get 3 quotes).

With so many businesses out there, like Nationwide at times, competing for your business, fully maximize that leverage and use points to buy down the rate.

8. Is there one final knowledge bomb you want to drop on us?

Take things one day at time,  can’t stress this enough. If one day at a time is too overwhelming, slow it down even further. One hour at a time, whatever it takes to catch your breath.

It’s so important. I always remind my 8-year-old son (he plays baseball) when his team is losing:

“How many runs can you score at once?”

He replies: “1 dad…”

I reply: “Then work on 1, son, then 2, then 3”, one at a time.

This puts the most important things into perspective, so you bite off what you can chew and this usually leads to a much better outcome in my experience.

Also, here are a few “Danisms”: “refuse to be a statistic”, “never be denied”, and “move like you got a purpose in life”.

9. Where can we go to learn more about what you do and you?

Here’s my LinkedIn profileI will be launching my personal website by EOY.

Like I mentioned before, I do write for Entrepreneur and my work has been featured in over 150 articles across 61 publications including Time Magazine, WSJ and Business Insider. has also been featured in over 48 books and in 2011, I helped Guy Kawasaki launch his new book (view here).

Final Words

There’s a ton of important information shared in this interview.

But, if you’re a regular reader of Take Your Success, you should know by now that life isn’t about absorbing knowledge and calling it a day. You need to take what Dan Wesley said and put it to action if you desire to see positive results.

I want you to win. Do you want yourself to?

Related: The Best Time To Start Is Now

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Why Your Salary Is Costing You Millions In Earned Income




The average person craves a salaried job the for comfort, security, and the guarantee they can pay their bills.

But a salary will cost countless people millions of dollars in earned income throughout their career.

It’s ironic that we want a guaranteed income so we can live comfortably leading up to and through retirement.

That’s what society promises, at least, until things become uncomfortable.

Once something bad happens—you get fired, laid off, don’t save enough, salary increase doesn’t keep pace with inflation, make bad financial choices, have expensive kids, get divorced—and now you’re far away from a comfortable retirement nest egg plus have less skills and determination to go make your own money.

The salaried gig looks great on the outside, until you dive deeper to see that it’s often the single biggest demotivator and limiting factor to earning more money.

Your Salary Kills Urgency And Entices Laziness

Though not entirely similar, a salary shares some common characteristics of communism.

You get the same paycheck every month regardless of your performance—pretty close to communism.

At many jobs, a guy like Bill will voluntarily show up at 6 AM every work morning and leave at 8 PM, while slacker Johnny over there shows up at 8 AM and leaves at 6 PM and is paid the exact same wage as Bill.

The paycheck doesn’t reflect the reality that Bill worked 20 plus more hours than Johnny and got a heck of a lot more done than Johnny.

Talk about unfair? The salary gig is cruel, I’m telling you.

And since that situation isn’t fair, human nature will get Bill to think, “Stop working so hard. Why bother to put in the extra hours if I’m not rewarded? I’m going to start acting like Johnny because he’s doing just what’s asked of him and the boss doesn’t notice my performance.”

Now I’m not naive to think that bonuses, raises, and promotions aren’t a thing in the workforce—a differentiator from communism.

However, those are just too much out of your control to count on and you’re not rewarded until months or years later. And they often require smart salary negotiation, which is difficult if you’re not practiced, on top of luck.

Plus, in the example above, if Bill decides to work less and deliver less value then he won’t get the bonus or raise even if there’s one available.

The idea is that a salary often persuades workers to do the bare minimum to keep their job and keep getting paid.

It doesn’t entice individuals to give their all each and every day to not only make themselves double the income, but the company double the return on investment in them as well.

Knowing a paycheck is coming has a cocaine effect where you’re addicted to that monthly guaranteed income even though it’s not in your best interest to rely on it.

What’s worse is the damage it does to your overall net worth.

Guaranteed Income Costs You Millions Of Dollars

The addiction of needing a salary will costs millions of people, millions of dollars in lost income.

Let’s take a look at the multiple reasons why a salary sets you up to fail in the chase towards wealth.

For one, the average salary increase in the US doesn’t match the potential of a hustler who gets to decide their own income based on their work ethic.

A May 2017 forecast from WorldatWork predicts that salary increase budgets for U.S. employers will grow 3 percent on average in 2018 across most employee categories.

Say you make $50,000 a year at your 9 to 5 job you despise. Are you going to bust your butt for 261 work days in the year for a 3% salary increase? I’m not. We’re only talking about $1,500 at that rate.

The work compared to the payoff doesn’t add up to a good deal. It’s not motivating to me. It shouldn’t motivate you.

I could work at McDonald’s and come out with more dollars per hour than that thievery.

You’ll drag your feet for a 3% salary increase (+$1,500), but perform like a workhorse if you have a definite opportunity to double your current income (+$50,000).

That’s a difference in $48,600 between the two of them for the year and this is just the beginning. The difference is exponential over the lifetime of a career.

Second, when your income is entirely in your hands—be it as a beginner entrepreneur, commission sales rep, recruiter, or other job—your butt is on the hot seat from the get go to perform.

There’s no room to take it easy if you want to eat that week and keep your business alive.

Plus, you’ll be motivated to save extra money since this can turn into the business’ emergency fund or a payroll account to hire some contractors or full-time employees.

Meaning each dollar you earn has a higher purpose than eating expensive meals and treating yourself to materialistic clothing purchases.

And by investing in your business, your company and you personally will take home more profits than if your income was tied down by a normal 9 to 5 job.

I’m not surprised when I look at the richest people in each state only to find that none of them are salaried works but entrepreneurs and business owners.

Now you don’t have to be an entrepreneur, but you do need a job with no ceiling on your income if you want to get maximum performance out of yourself and the rewards that come with it.

Third, the rate of your learning is immensely sped up when you have to rely on your own work ethic to make money and pay the bills. You can’t afford to be out of the know in your industry if you want to compete with your competitors.

This is the pressure that forces you to gain knowledge and then use that experience to win more deals for yourself.

Plus, you can compound your knowledge to make more money in the future or consult others on the keys to success based on your experience. These opportunities aren’t there in the corporate world.

By getting off the addicting salary drug and choosing your own medicine, you force yourself to provide value to others so you can ultimately get paid what you’re worth.

And the more patient and skilled you become, the greater this income increases over years then decades.

That’s how your income grows by hundreds of thousands of dollars every year, which adds up to millions, instead of 3% and $1,500 (if that) every year.

Work Like You’re Not On Salary

You only get to do this thing called life once.

Why take the safe and boring road with a salaried job that is like driving a minivan straight on a flat road until retirement, when you can take the thrilling road in a sports car up a mountain with jagged cliffs and unbelievable views?

Bet on yourself. Work your face off. And work like you’re not on salary.

By mixing things up, you’ll discover if your company rewards you for going above and beyond what’s asked of you.

And if they do incentivize your efforts then you don’t need to find a different job. Maybe it doesn’t though and you see the writing on the wall: you’re worth millions more than you will ever earn here so you find a better job you love.

It’s like any pursuit in life, you need to get out of your comfort zone to truly push yourself, grow, and become the best version of yourself.

Happiness comes from personal growth. So take the jump and make the most of it.

Millions of dollars are nice, but the feeling of personal satisfaction from working incredibly hard and getting rewarded for it will far trump the money—every time.

Related: Would You Live Off A Dollar A Day To Achieve Your Dreams?

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Why 1 Bitcoin Can Be Worth $100,000 In A Few Years



Bitcoin. What is it? How much is one worth? And how much is it going to be worth in a few years and long term?

You have questions. I have ideas.

Let’s break it down one by one. Because when we’re talking cryptocurrencies (already confused by that word?) like Bitcoin it can be easy to get lost in terminology and explanations.

For the sake of brevity, here’s my definition and my dumbed down explanation in parenthesis:

A Bitcoin is a digital currency (internet money) that is decentralized (completely independent of a central bank or country) and uses blockchain (encryption, or a digitally secure method) to prove transactions have been made and to keep an accurate ongoing record of activity.

Still confused? That’s alright.

People were confused about cars and the internet when they first heard about it. But they learned and those two inventions turned out to win the day over horses and newspapers.

Basically a Bitcoin is internet money for the people, and belongs to no bank or country. If you want another explanation, this piece from Coindesk should help.

The current market value of 1 Bitcoin at this exact time of writing this blog post is $3,630—well now it’s over $5,000 in just a week or two later when I first drafted this article. Excuse my Captain Obvious (just being mindful of the rookie investors here): that’s the rate you have to pay if you’re going to buy one today and the return you’d get if you’re selling one right now.

For a little personal back story, the first date I bought Bitcoin was in May 2016. That’s around 16 months before posting today’s article. That’s 16 months to grow in value—and let me tell you, it has been the best investment of my entire life to date. (Tesla is up there, but this takes the cake by far.)

I’ll do another video about my Bitcoin story to fill you guys in.

But for now it’s all about the crazy high potential of Bitcoin and why I see a rich future in this cryptocurrency years and decades from now.

What Will Bitcoin Be Worth In A Few Years?

Before anyone gets too carried away in what I’m about to write, let me preface this with a blunt statement: No one knows (including me) the future price of Bitcoin.

(And don’t trust anyone that claims they know. They’re either liars, or they’re liars and thieves trying to steal your money for their personal gain.)

However, I wouldn’t be surprised if in the future 1 Bitcoin is worth $100,000. That’d mean it rockets in price to be worth 20 times more than it’s worth today!

Though it’s not just me who sees insane potential in Bitcoin.

Check out what John McAfee—remember the guy famous for inventing the McAfee anti-virus software? this is the same man—tweeted:


While no one may be as bullish on Bitcoin as McAfee, other recent estimates from super smart people in finance see high growth for this revolutionary cryptocurrency coin:

Here’s why I hold this lofty marker for Bitcoin and why I think it (along with other cryptocurrencies) can change the world as we know it.

(As the note at the bottom of this blog posts suggests, this is just my opinion and not investment advice.)

Strong Advantages Bitcoin Has Going For It


I’m not just making a wild prediction when I say Bitcoin has the potential to be worth $100,000 someday. I don’t say stuff like that on pure whims.

My hopefulness is backed by some hard facts that Bitcoin has going for it:

  • Bitcoin is the first and top brand of all cryptos. Being the bellwether brand in this space gives Bitcoin more staying power and a better likelihood of reaching mainstream adoption than anything else. The first mover always has rare advantages that other coins have a difficult time catching up to. (See Facebook as an example of early acceptance and then dominating at the top spot.)
  • It costs money for miners to mine Bitcoin. Since it costs human resources, machine power, and money to mine Bitcoin (thousands of dollars or more), there’s real value in the coins unlike printed money where the federal banks can print as much as they want and create inflation.
  • Bitcoin and the blockchain can be a transcendent technology. Inventions like electricity and the internet changed the world forever and the early adopters in the internet are still reaping the absurd financial benefits today. Since Bitcoin eliminates the middle man (banks) in financial transactions to save people fees and time to send or receive money, this technology has the potential to completely upend the banking system, world financial system, and how society is run as we know it. If or when it does that, a serious price increase will follow.
  • Anyone can buy it, not just rich people. Investing in startups, real estate, and private companies is only allowed if you’re already wealthy, but you don’t need a private invitation to invest in this cryptocurrency and the others. The fact that anyone can buy Bitcoin gives it a tremendous advantage over other investment assets. By allowing the masses to get in this game or put their money into Bitcoin to protect themselves against government inflation, it makes Bitcoin more likely to be a fixture in the future.
  • The rising usage of Bitcoin means rising price and long-term value. As countries like India “legalize” Bitcoin and places like Japan open up Bitcoin ATMs the exchanging of Bitcoins is going to rise, which raises its monetary value. Plus more usage leads to more word of mouth marketing from businesses to non-profits to neighbors.
  • Talent is flocking to work on blockchain technology. Working in Silicon Valley used to be the hottest trend for the world’s brightest minds, but there’s been a flocking of brilliant people who are spending their every working hour on Bitcoin, the blockchain, and related opportunities.
  • There is a limited supply of 21 million Bitcoins. After all 21 million Bitcoin are mined, no more Bitcoins can be mined since that’s the limit. Then the supply plummets and the demand skyrockets. The problem with cash is the Federal Reserve and governments can always print more so supply is always there. The lack of unlimited Bitcoin supply will drastically raise its value over time.

Keep in mind two more things.

First, those details above are just some of Bitcoin’s advantages. I could have gone on longer but those are what I feel are the main benefits that give it insane potential to grow in price to multiples of the current value.

Second, none of those advantages mean Bitcoin is a guaranteed winner and it’s by no means a risk-free investment. Countries like China and Russia have been clamping down on cryptocurrencies which poses threat (or maybe more potential for success) to this space.

Final Words

In complete transparency, although I’d say I’m well read and “in the know” about Bitcoin, by no means am I an expert or the smartest guy out there on the subject.

What you read are just my quick thoughts off the top of my head that I intentionally tried to keep simple to avoid confusion.

What do you think about Bitcoin, its future worth in a few years, and the cryptocurrency space in general?

And while I’ve personally had unbelievable financial success investing in Bitcoin and I am still long on the technology going forward, it could drop by 50% or 100% of its value and go to $0 at any moment.

Tremendous risk surrounds this cryptocurrency space as of now.

So don’t invest money you can’t afford to lose. Don’t risk losing your car, house, or the stability of your family because you did something stupid and got burned.

Be smart with your money. Start small if you’re going to invest in anything, including Bitcoin. And realize that you can lose the shirt off your back if you make bad investing decisions.

Also, read the note below to be clear about the intention of this blog post. Good luck!

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

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