Bitcoin is a hot topic in the news these days, so Josh & Austin decided to revisit it. In this episode, you’ll hear the most recent Bitcoin numbers, factors into why it is so popular, and a look into why and how people buy Bitcoin. The conversation is concluded with answering the question, “should you invest in Bitcoin?” Listen in now!
Main Talking Points
[1:21] – Bitcoin in Numbers
[3:23] – 3 Factors for Bitcoin
[9:42] – Why People Buy Bitcoin
[14:31] – How People Buy Bitcoin
[19:31] – Dad Joke of the Week
[20:17] – Should You Invest in Bitcoin?
Links & Resources
Should I Invest In Cryptocurrency? – The Everyday Advisor
Invest With Us – The Invested Dads
Free Guide: 8 Timeless Principles of Investing
Social Media
Full Transcript
Intro:
Welcome to The Invested Dads podcast, simplifying financial topics so that you can take action and make your financial situation better. Helping you to understand the current world of financial planning and investments, here are your hosts, Josh Robb and Austin Wilson.
Austin Wilson:
Hey, welcome back to The Invested Dads podcast. The podcast where we take you on a journey to better your financial future.
Austin Wilson:
It has been a wild ride for Bitcoin over the past year, so we thought it’d be a good time to revisit the discussion.
Josh Robb:
Speaking of Bitcoin, a lot of people have to go to the dentist after they Bitcoin.
Austin Wilson:
Seriously?
Josh Robb:
Tried. I tried.
Austin Wilson:
I think you used that same little pun in the last crypto episode.
Josh Robb:
Probably.
Austin Wilson:
Actually, that’s probably a good note, that if anyone has not listened to our crypto episode from 2020, which was episode 20, they probably should before this. It actually has some good information on what cryptocurrencies are, a little bit about Bitcoin, how they’re mined and things like that. So go listen to that episode.
Josh Robb:
Mined or yours.
Austin Wilson:
Mined or yours. And we’re going to get into the codes and all that stuff in a little bit. That is where we’re at. Check that out before we get digging.
[1:21] – Bitcoin in Numbers
Austin Wilson:
Anyway, back to Bitcoin in 2021.
Josh Robb:
It’s been a quiet year for them. I haven’t heard much. Tell me what’s been going on.
Austin Wilson:
That’s exactly right. There hasn’t been much on the Bitcoin front. Let’s look at the numbers.
Austin Wilson:
Thinking around the time of the stock market bottom, actually, March 16th of 2020, Bitcoin traded as low as $4,904 per Bitcoin.
Josh Robb:
Just this last year?
Austin Wilson:
Just 2020.
Josh Robb:
It hit a low of 4,904.
Austin Wilson:
4,904. Bitcoin recently peaked, so on January 8th of this year, 2021, at 40,041.
Josh Robb:
Nice.
Austin Wilson:
That represents a 716% return in less than 10 months.
Josh Robb:
About what you expect when you buy-
Austin Wilson:
Stock market.
Josh Robb:
… my fixed income or my emergency fund.
Austin Wilson:
Exactly. 716% in less than 10 months. I don’t know, spitballin’, that’s 900-and-some percent annualized or whatever. It’s a lot.
Josh Robb:
That’s crazy.
Austin Wilson:
It’s a lot.
Austin Wilson:
Following that peak, the cryptocurrency Bitcoin that we’re talking about here, fell nearly 20% in a day and has yet to recover. It’s all time high is at the time of this recording, which is on the morning-
Josh Robb:
The 20th.
Austin Wilson:
… of the 20th. Wow. 20% in a day. That’s a wild ride.
Austin Wilson:
Over the past five years, Bitcoin has returned about 9,400%, 9,400, compared to the stock market or S&P 500, which is about 100% over that same period. That’s a lot different. Gold, on the other hand, during the same time, has returned 70% over the past five years. Silver, 82%. Wow. Much different.
Josh Robb:
9,400?
Austin Wilson:
Yeah.
Josh Robb:
If I had a dollar, I’d have a lot more dollars.
Austin Wilson:
It’d be worth $94.
Josh Robb:
More than that, right?
Austin Wilson:
No.
Josh Robb:
Doesn’t it compound over that time too?
Austin Wilson:
No, that’s the compounded number.
Josh Robb:
That is the compound.
Austin Wilson:
Yeah. If you put a hundred dollars in Bitcoin in five years ago, multiply that by 94.
Josh Robb:
Wow. That’s a lot of money.
Austin Wilson:
Oh yeah. So that’s pretty good.
[3:23] – 3 Factors for Bitcoin
Austin Wilson:
Anyway, what drives the price movement? We should probably dig into that. There’s really three factors, right?
Josh Robb:
Mm-hmm (affirmative).
Austin Wilson:
I’m going to get really nerdy. First two factors are supply and demand, which we’re going to talk about. Then the third one is euphoria.
Josh Robb:
Euphoria.
Austin Wilson:
So supply and demand, things you probably learned in econ 101 class. Thanks Professor Gamba from UF, if you’re listening.
Supply. Think how many of something is out there. Traditionally, this is an upward sloping curve. And if Josh, you look at my board over here, I actually have supply and demand curves drawn on the board right now.
Josh Robb:
Wow. You do. You do right now.
Austin Wilson:
This is traditionally an upward sloping curve that increases as there’s more of something available, right? Supply.
Josh Robb:
Yep.
Austin Wilson:
Simple enough. Demand. How badly something is wanted is traditionally a downward sloping curve and they intersect. The higher the supply is, then the lower the demand is, and therefore a lower price. The lower the supply is, think scarcity, the higher the demand is, and the higher the price will be, all other things equal.
That’s supply and demand. Those factors are pretty straightforward. Something that is pretty difficult to put a value on, especially when it relates to things like Bitcoin, is the factor of euphoria. Supply and demand can explain a good bit of Bitcoin’s move, but it’s no secret that overnight price movements, particularly to the upside that has made people millionaires, has brought people to the point where they’ll just buy it because it’s going higher and keep doing so because the higher it goes, the more good they feel regardless of the underlying economic value. This is really what separates Bitcoin from other assets. Back to supply. There are about 18 and a half million Bitcoins in, I’m using air quotes on a podcast-
Josh Robb:
They can see it.
Austin Wilson:
… quote, unquote, “Circulation.” They’re not really in circulation because there’s no physical coins.
Josh Robb:
They don’t actually circulate.
Austin Wilson:
And only about 20 million that will ever be mined total. There’s only about a million and a half left. So like I said, if you want to learn about mining, we talk about that in the other episode.
Josh Robb:
When you talk about that, it’s not like everyday it’s mined. There’s a process, and it gets longer and longer as it goes out. This next Bitcoin’s going to be harder to mine or take longer to mine than the last one, and that’s this exponential mining.
Austin Wilson:
Or at least take more computing power.
Josh Robb:
More power. More processing power.
Austin Wilson:
Exactly, to solve those complex problems on the blockchain that we talk about. That’s supply. Supply is very slightly sloping upward, but it’s nearly a flat curve because there’s not a ton of Bitcoin left. You know how many there are and how many there will be.
Demand has remained elevated for years among retail investors. Overall demand increased substantially in 2020, and even to today in 2021, because large institutional investors have really picked up their interest in Bitcoin. As well as, actually, many companies, even publicly traded companies, are wanting to store portions of their cash reserves in Bitcoin. That’s pretty crazy.
Josh Robb:
Storing your cash reserve in a asset class that dropped 20% in one day, does not make sense to me.
Austin Wilson:
It’s like that emergency fund, that episode that we talked about, we said you shouldn’t-
Josh Robb:
Put it where somewhere where it’s still there.
Austin Wilson:
Exactly.
Josh Robb:
Where you don’t need to look for it. Now, they’re not 100% correlated, but Bitcoin and stocks can follow a trend where when you see the stock market go down, like when we talk about the low Bitcoin there around March, that’s when you might need your emergency money. Oh man. It seems crazy to me.
Austin Wilson:
We’re going to get into some of the reasons why people buy Bitcoin, but some of it doesn’t make sense in the fact that people think of Bitcoin as a hedge against equities. It’s not. It’s actually worse. We’ll talk about that in a little bit.
Josh Robb:
Before you get out of the supply and demand, you did a shout out to your econ professor. I loved my econ professor. Mr. McFerrin, Professor McFerrin, thanks for all those classes. Enjoyed them. Supply and demand, I knew what Austin was talking about.
Austin Wilson:
See, he knew. That’s exactly it.
Austin Wilson:
Back to those three factors. The third one, like I talked about, euphoria, in my opinion, has actually been lower in this latest rally than it was at the end of 2017. Which it seemingly, like Bitcoin, shot up overnight back in 2017. The one way that you can gauge this is from Google searches. You can look up the frequency-
Josh Robb:
Google search. Is it more popular now than it was?
Austin Wilson:
Exactly. Someone told me. It’s on the internet, it’s true.
Josh Robb:
Wikipedia, it’s got to be true.
Austin Wilson:
Wikipedia.
Austin Wilson:
Overall, Google searches related to buying, owning, and trading Bitcoin are far below levels back in 2017, even though the price is much higher.
Josh Robb:
So someone saying, “What is Bitcoin,” or, “How do I buy Bitcoin? How do I own Bitcoin?” Those kind of things.
Austin Wilson:
Exactly.
Josh Robb:
Got you.
Austin Wilson:
But this does not mean that there is not euphoric action going on. There certainly is.
Josh Robb:
Based on talking about banks and larger institutions getting involved, the demand may have switched. I’m guessing a banker’s not Googling Bitcoin as they are getting ready to invest part of their cash reserves into it.
Austin Wilson:
True. They probably already took care of the research.
Josh Robb:
So the demand is probably, or, maybe euphoria, however you want to look at it from an institutional standpoint, is pushing pressure because they’re not buying one Bitcoin. They’re buying-
Austin Wilson:
Many.
Josh Robb:
… a handful of Bitcoins, even when they’re trading at $40,000. You’re right, the euphoria is that it’s blending or moving into other institutions that hadn’t touched it in the past. This euphoria is expanding beyond just individuals into institutions.
Austin Wilson:
I don’t know.
Josh Robb:
Oh, man.
Austin Wilson:
Some of these things. Remember our Tulip episode?
Josh Robb:
Yeah.
Austin Wilson:
Bubbles. Asset bubbles?
Josh Robb:
Yep.
Austin Wilson:
Where there really was no rhyme or reason behind.
Josh Robb:
Why are you going to Tulip?
Austin Wilson:
It was supply and demand back then too. They were super rare, super hard to get ahold of, so they were very expensive. All these things. So tulips became super expensive. It’s not the same, but some of the vibes of an asset bubble certainly can be correlated with Bitcoin.
Josh Robb:
FOMO. The fear of missing out has a piece of this. You see Bitcoin move from 4,000 to 40,000-
Austin Wilson:
And then you want to buy it because it’s going up.
Josh Robb:
… and, “Oh, man. What did I miss out on?” And then you see a news article that says it’s going to 190,000 and you’re like, “Man, I can get in now.”
[9:42] – Why People Buy Bitcoin
Austin Wilson:
True. Let’s dig into some reasons of why people would buy Bitcoin. Number one reason is people believe it will go higher. This is probably the biggest reason people buy it. There is substantial market exuberance specifically around Bitcoin.
Number two, the chart doesn’t lie. Bitcoin has serious upside momentum. Whether it’s stocks, bonds, commodities, or even cryptocurrencies, the path of least resistance is for things to keep trading the same direction they have been. In this case, up.
Josh Robb:
In our terms, that’s momentum. When we talk about in our industry, momentum. If something’s heading in one direction, it’ll continue that way until something … It’s almost like Isaac Newton’s philosophy, right?
Austin Wilson:
Yeah.
Josh Robb:
An object in motion will remain in motion unless a force opposite reacts on it.
Austin Wilson:
As they say, the trend is your friend. If the trend is going up, people believe it will continue to go up.
Number three, people are afraid of inflation. They believe Bitcoin will shield them from it and return more than inflation. Which it substantially has.
Josh Robb:
Which it has in the last one year, or five year …
Austin Wilson:
Even forever.
Josh Robb:
We start at zero.
Austin Wilson:
Since inception. The truth is, that at least since Bitcoin was created, we’ve had such little inflation and the track record is so short, that we really don’t understand how the relationship really works. We would have to have all of the Bitcoin in circulation and-
Josh Robb:
And no new cryptocurrencies coming out. I think that has an impact.
Austin Wilson:
True.
Josh Robb:
We’re talking Bitcoin, but they’re one of the cryptocurrencies.
Austin Wilson:
And there’s hundreds, if not more. This is just the biggest. People are afraid of inflation. And you know what? It has, we talked about it earlier, it has outpaced inflation. It’s outpaced gold. It’s outpaced-
Josh Robb:
It barely squeaked by.
Austin Wilson:
9,400% of … what was CPI up over the last five years?
Josh Robb:
One point eight.
Austin Wilson:
I think 10% total.
Josh Robb:
Is it 10?
Austin Wilson:
Cumulative over 10 years. So yes, it’s done that. It’s such a short track record, and volatility is something crazy.
Another reason, number four, that people buy Bitcoin, is just as a hedge against uncertainty. Like we had alluded to, many people think that owning some Bitcoin can provide a hedge against equity market uncertainty. They must be believing that they’re negatively correlated. In reality, they’re positively correlated.
Josh Robb:
Positive.
Austin Wilson:
They both have gone up over the same time.
Josh Robb:
Negatively correlated.
Austin Wilson:
True.
Josh Robb:
Positively correlated. Explain that real quick.
Austin Wilson:
A negative correlation is when one thing goes up, the other thing goes down. Stocks and bonds.
Josh Robb:
They go opposite directions.
Austin Wilson:
Stocks and bonds. Generally speaking, equity market goes up, bond prices go down because yield goes up. Another inverse relationship there. So negative correlation is opposite. Positive correlation is one goes up, the other one goes up.
Josh Robb:
They follow.
Austin Wilson:
Equity market and yields is one example of that. Those kind of things.
Josh Robb:
Like when Ohio State does well, my attitude goes up. Those are positively correlated. Something like that. Got you.
Austin Wilson:
Or donuts.
Josh Robb:
Donuts.
Austin Wilson:
The more donuts that you eat-
Josh Robb:
Donuts in the room and my attitude in life, they follow the same trend.
Austin Wilson:
Exactly.
Josh Robb:
The more donuts there are in the room, the happier I get.
Austin Wilson:
That is correlation. So yes, equities and Bitcoin are actually positively correlated. Both have gone up over the same period of time, at least over the last while, and actually went down around the same time too. So positive correlation there. If you own Bitcoin, you’re actually going to increase your overall portfolio volatility instead of decreasing it, which would be your goal.
Josh Robb:
If it drops 20% in a day and the market goes down, it’s not a fun day.
Austin Wilson:
Double whammy.
Josh Robb:
It’s not a fun day.
Austin Wilson:
Instead of going the opposite. That is a flawed view of Bitcoin.
Austin Wilson:
Finally, people think it’s a safe haven against central bank and reserve actions, that really are going to ultimately weaken the dollar or continue to do so, I guess, as we’ve seen over the last year or so. Bloomberg Economics, I read a piece yesterday, they attribute about 60% of Bitcoin’s returns since October of 2020, to a combination of exuberance and momentum. So not fundamentals at all, which is 60%.
Josh Robb:
A lot. That’s a lot.
Austin Wilson:
A further 35% of the returns can be attributed to hedging against inflation, which, not inflation we’re seeing now.
Josh Robb:
Future inflation.
Austin Wilson:
This is anticipated inflation, which, for all intents and purposes, it seems likely we’re going to have some sort of inflation over time.
Josh Robb:
Well, the Fed themselves are trying to push inflation.
Austin Wilson:
They want inflation. But with all the printing of money and the dollars out there right now, we’re going to have inflation at some point, but that’s what most of the movement has been.
Josh Robb:
That’s 60 plus 35. If my math is right, that leaves 5%, which is probably explained by our podcast on Bitcoin, getting people excited about it.
Austin Wilson:
I think so. Last years and this one coming up is going to explain the other 5%.
Josh Robb:
Makes sense.
[14:31] – How People Buy Bitcoin
Austin Wilson:
How people buy Bitcoin, that’s also changed. Over the last couple of years, anyway. The original place where you could buy Bitcoin was cryptocurrency exchanges. The website was made for trading and buying and selling cryptocurrencies. Not just Bitcoin, but other ones. An example of this is there’s a big one out there called Coinbase. That was the main way that cryptocurrencies were traded.
Nowadays, in apps you already use, you can buy Bitcoin. You can buy even other ones like Ethereum or Litecoin or whatever. Square and PayPal have gotten into the Bitcoin game. I have a PayPal account and I actually was able to trade some Bitcoin. Now, not hold Bitcoins. I didn’t put $40,000 into a Bitcoin, but you can buy and share partial pieces on your phone.
Josh Robb:
That’s the key, too. The exuberance is, when it comes to stocks, if I want to own one share of Amazon, for instance, it’s a couple thousand dollars. It’s $3,000 or something. If I want to buy just a little bit of Bitcoin, I could put $20 in it.
Austin Wilson:
True.
Josh Robb:
That’s the other thing, is it’s easily accessible. I don’t have to have a whole Bitcoin. I could buy a portion of it.
Austin Wilson:
That’s something that’s changed. I think last year was when Square and PayPal got on board. It’s super easy and user-friendly, and that’s why the people on the street can just buy and sell Bitcoin or whatever they want, whenever they want. Really, for very affordable fees now, too. They actually had no fees on PayPal on their crypto trading platform at all, until the end of 2020. So they got you hooked-
Josh Robb:
Get in early.
Austin Wilson:
… and then they’re like, “Oh, I like this.”
Josh Robb:
First trade’s free.
Austin Wilson:
And then in 2021, they put … I don’t know what the fee is. It probably isn’t too much, but interesting.
Josh Robb:
Now, a third way.
Austin Wilson:
Go.
Josh Robb:
Is they now have things that track Bitcoin.
Austin Wilson:
True.
Josh Robb:
That if you say, “I’m horrible with pass codes. I keep losing my password to my computer-“
Austin Wilson:
I’ll work into that.
Josh Robb:
… and all that. There’s some crazy stories to that, but you can now buy exchanges where they hold it, they actually own physical Bitcoin, but you’re buying-in like a mutual fund or ETF, that same structure, and then I could trade that.
Austin Wilson:
Grayscale Bitcoin Trust, that one is one.
Josh Robb:
Then that’s similar to buying a investment in equity because it’s traded on an exchange. It’s not as secure because with Bitcoin, each one is … that’s what the blockchain is. It verifies those transactions. This is done similar to what you’d buy in ETF, but you don’t have to worry about losing your password.
Austin Wilson:
Let’s talk about that. First of all, if you buy a cryptocurrency, not just Bitcoin, but specifically let’s talk about Bitcoin, on a crypto exchange or whatever, you are given a passcode, an access code for that particular coin or your portion of that coin or whatever, from the blockchain. That is unique to you and the portion that you hold. If you lose that access code, you lose access to your cryptocurrency forever. There’s no way to retrieve it. No one stores it for and all those things.
Josh Robb:
It’s gone.
Austin Wilson:
Now, this is where it’s nice to use something like, maybe a fund, but specifically I was thinking something like PayPal, you do not have access. You own the crypto. You do not have access to your code. PayPal securely keeps track of all that for you. You can’t lose it and you can buy and sell it without worrying about it. It’s a little bit lower risk because there are literally thousands, if not more, of Bitcoins out there that people have lost their access code to.
Josh Robb:
I just saw an article-
Austin Wilson:
Millions of dollars.
Josh Robb:
Millions. It was over, I think, in London. Somewhere in Europe area. He threw away a hard drive that had his key on it or whatever.
Austin Wilson:
That’s crazy.
Josh Robb:
He’s pretty sure he knows the landfill it’s in.
Austin Wilson:
Oh, man.
Josh Robb:
In this article I was reading-
Austin Wilson:
It might be worth buying the landfill.
Josh Robb:
… he’s been petitioning or requesting the government, the local government. They have this law there that you can’t go in there because it’s a contamination risk, blah, blah, blah, so he’s been petitioning … it’s like a hundred million dollar … it’s a lot of money on this Bitcoin thing that he lost his code to. He’s even offered to donate 50% to local charities or to help with COVID or something like that. They’ve denied him this ability to go in there. I’m like, for a hundred million dollars, it may be worth the fine or whatever they’re going to fine you to get in there and get it if you could find it. It’s just crazy.
Austin Wilson:
You could hire a criminal-
Josh Robb:
He threw away a hard drive and it had it all on it.
Austin Wilson:
You could hire a criminal to go in and get it for you and still come out ahead.
Josh Robb:
He probably won’t give it back though.
Austin Wilson:
No.
Josh Robb:
He thinks it’s still salvageable. It’s been a couple of years, but he thinks it’s there and he thinks he could still get it.
Austin Wilson:
Could you imagine just going in and digging around?
Josh Robb:
Could you imagine knowing that you threw away millions?
Austin Wilson:
Millions. Many millions of dollars.
[19:31] – Dad Joke of the Week
Josh Robb:
Let’s take a break.
Austin Wilson:
I like breaks.
Josh Robb:
Dad joke of the week. I’ve got a good one. I saw this one online.
Austin Wilson:
It wasn’t about, you Bitcoin and broke your tooth?
Josh Robb:
Nope. This is it. Of the 100 greatest inventions over the last century, the white board. It’s very remarkable. Re-markable?
Austin Wilson:
That’s pretty funny. Whiteboards were a game changer.
Josh Robb:
But it’s remarkable.
Austin Wilson:
It’s remarkable. You can remark it.
Josh Robb:
I like that one.
Austin Wilson:
Something that whiteboards don’t allow you to do, is scrape your nails on it.
Josh Robb:
That’s true. You can’t do that.
Austin Wilson:
Oh, that sound and that feeling. I get the heebie-jeebies just thinking about it. So yes, whiteboards are remarkable, Josh.
[20:17] – Should You Invest in Bitcoin?
Austin Wilson:
Let’s take a step back.
Josh Robb:
We talked about what it is. We’ve said what it’s done. It’s up 9,400%-
Austin Wilson:
For the past five years.
Josh Robb:
… since five years. Should you invest in it?
Austin Wilson:
I’m going to quote my esteemed colleague, Jess, also known as, the everyday advisor, and say, and I quote, “Invest? Absolutely not. Should you speculate? Well, maybe. And that’s because-
Josh Robb:
What’s the difference.
Austin Wilson:
I view Bitcoin not as an investment because you can buy Bitcoin with anticipation that it will go higher, but that anticipation, that’s just speculation. You’re just anticipating that it will go higher. There is a difference. If you have a small sleeve of your net worth that you could stand going to zero, or you could stand doubling, that could do either one-
Josh Robb:
9,400% growth.
Austin Wilson:
You could allocate a small amount to something like a Bitcoin. Don’t bet the house on it, is what I’m saying.
Josh Robb:
So really, when we talk about it in a diversified portfolio for long-term investing, this really doesn’t fit in that category.
Austin Wilson:
True.
Josh Robb:
What it does fit in is, say I have a little bit of extra money, that if I just lost this money, it just misplaced it in a landfill because I threw away a hard drive, I would not be devastated. It would not impact my financial future. Then maybe I could consider this being one of the things I do with it.
Austin Wilson:
This is play money, money. Something that you were going to spend on fancy donuts anyway, but instead, you’re going to put it into the cryptocurrency market. Don’t put enough in something like this, that it will affect your financial goals or that you will depend on it for your financial goals to work out in a certain direction.
Josh Robb:
If it doesn’t double every year and go up 700%-
Austin Wilson:
I know. “I’m going to be a Bitcoin retiree by the time I’m 50.” No, that sounds like a bad plan.
Austin Wilson:
Now, some people have bought Lamborghinis and done all kinds of things, but-
Josh Robb:
And then they got a huge tax bill.
Austin Wilson:
And then they got a huge tax bill that they weren’t planning on and had to get in trouble. Anyway, that is the overall thought. Jess had a really good blog about this exact topic which prompted this episode, so we’ll link that blog in the show notes.
Bitcoin, we’re not going to call it an investment. We’re going to call it speculation. That does not mean don’t ever, no one can never hold it or should hold it. If you want to do that, that’s fine. We’re not advising that you do or that you don’t, but it’s more of a speculation.
Josh Robb:
I think, like you said, very interesting, but I feel like this is one asset class where people invest in it when they don’t completely understand it, and that can sometimes be dangerous.
Austin Wilson:
They could get burned.
Josh Robb:
Hopefully this helped you a little bit catch back up to what’s happened in the last year or so with Bitcoin. We enjoy watching it. Now you can see it. We have our TVs tuned to … What is that channel? CNBC?
Austin Wilson:
Yep.
Josh Robb:
Now, when it shows the Dow and the S&P-
Austin Wilson:
It shows Bitcoin.
Josh Robb:
… it shows Bitcoin as well.
Austin Wilson:
I know.
Josh Robb:
It’s becoming more mainstream. It’s becoming more visible in the investing world, which also means more people are trying it out. Which is not, again, not a bad thing, but you just got to understand the risk to it. Can you afford a 20% drop in one day? That’s happened.
Austin Wilson:
Even this year.
Josh Robb:
It will probably happen.
Austin Wilson:
Exactly.
Josh Robb:
Austin’s predictions for this year, that was one of his thoughts.
Austin Wilson:
No. I think I predicted that at some point this year it will hit 20,000 again.
Josh Robb:
Which is a 50% drop from that high.
Austin Wilson:
Exactly. And we’re still not back up to where it was and it’s down five more percent today or whatever. We’ll see if I nailed that one. We’ll have to see.
Anyway, as always, check out our free gift to you. It’s a brief list of eight principles of timeless investing. These are overarching investment themes meant to keep you on track to meet your long-term goals. No, we don’t mention Bitcoin at all because that should not impact your long term goals, but check it out. It’s free on our website.
Austin Wilson:
Josh, how can people help us grow this podcast?
Josh Robb:
Like we say, subscribe. That way you get our most recent updates when we drop a new episode every Thursday. Leave us a review on Apple podcast if that’s where you listen. Email us with any ideas or questions, hello@theinvesteddads.com. We love hearing from you. Then also, if you know somebody who’s talked about Bitcoin or cryptocurrency, share this episode with them.
Austin Wilson:
Well, until next Thursday, have a good week.
Josh Robb:
Talk to you later.
Austin Wilson:
Bye.
Outro:
Thank you for listening to The Invested Dads podcast. This episode has ended, but your journey towards a better financial future doesn’t have to. Head over to theinvesteddads.com to access all the links and resources mentioned in today’s show. If you enjoyed this episode and we had a positive impact on your life, leave us a review, click subscribe, and don’t miss the next episode. Josh Robb and Austin Wilson work for Hixon Zuercher Capital Management. All opinions expressed by Josh, Austin, or any podcast guests, are solely their own opinions and do not reflect the opinions of Hixon Zuercher Capital Management. This podcast is for informational purposes only and should not be relied upon for investment decisions. Clients of Hixon Zuercher Capital Management may maintain positions in the securities discussed in this podcast. There is no guarantee that the statements, opinions, or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principle. There is no assurance that any investment plan or strategy will be successful.
