Should You Invest In Bitcoin or Other Cryptos? Here’s What I’m Investing in for 2017


– Hey Yo! It’s your boy Ngo. (electronic music) I don’t know what’s going on, but every single day someone
asks me about Bitcoin and all these other cryptocurrency, Dogecoin, Litecoin, Ethereum. People want to invest more in bitcoin. People want to know if it’s too late? How much money do I have in it? First of all, if you don’t
know what bitcoin is, – [Narrator] What is bitcoin? Bitcoin is the first
decentralised digital currency. Bitcoins are digital coins you can send through the internet. Compared to other alternatives, bitcoins have a number of advantages. Bitcoins are transferred directly from person to person via the net without going through a
bank or clearing house. This means that the fees are much lower, you can use them in every country, your account cannot be frozen, and there are not prerequisites
or arbitrary limits. – So with this, bitcoin,
it’s virtual currency and what’s great about bitcoin is it’s starting to gain
a lot more mainstream and a lot of people think that
cryptocurrency is the future. Well first of all, I do have some bitcoin. I invested back in 2011 when
it was about 300 dollars or so. Was it 2011? I don’t know when. But I bought in at 300 dollars or so and last time I checked
it was at 2800 dollars. So yes, my ROI on it
has been quite amazing but my point is now are like
starting to hear about it more, it’s becoming more mainstream, so people are wanting to invest in it. So I wanna give some of
my thoughts on bitcoin. So first of all, you know, I
am not a financial advisor. This is just merely opinion. Do your own research. First things first, I think
a lot of people that are investing in bitcoin are not quote unquote investing in bitcoin. They’re coming at it
from the wrong mentality. I think number one, people are treating bitcoin like gambling. You know, the people that
I talk to they see that “Hey, I could’ve bought in
at 10 bucks or 100 dollars and I’d be a millionaire right now if I put all my life savings into it.” So now what’s going on
psychologically is they have this fear of missing out. Like, they see that its 2800 dollars and they would just hate this feeling that its 10, 000 dollars one day and they didn’t invest in it. So I feel a lot of people that
are investing in bitcoin now are doing it from the perspective of they haven’t researched bitcoin, they don’t know enough
about cryptocurrency, and they’re doing it
from the perspective of a get rich quick scheme or gambling and it’s very speculative. So, you know, I do have
some money in bitcoin but it’s a very small part
of my portfolio, very small. Like, something like bitcoin
shouldn’t be more than say 5% of your portfolio because, you know, I think of
it like gold or silver. Like, gold or silver, it’s just currency but it doesn’t have any
value in and of itself, not like real estate actually
has a functional value, investing in companies
has a functional value because if I invest
5000 dollars in Amazon, they’re gonna take that 5000
dollars and create real value. So that’s why I’m not really into gold, I’m not really into silver, I’m not really into
bitcoin currency, you know. So if you’re gonna invest in it don’t invest more than
say 5% of your portfolio. Next thing is one reason
why I don’t like bitcoin is a lot of people are not maxing out on their tax advantage investments. What I mean by this is, guys, there’s things like 401(k), there’s things like SEP IRA, you can put 5500 dollars
into your Roth IRA, there is the HSA which
is triple tax advantage. So my point is if your
investing in bitcoin that is with after tax dollars which is very inefficient. It’s a lot better to put your money, save money on taxes through the Roth IRA or
401(k) and maximise that. So, that’s another thing I wish
people would do more, next. You know, bitcoin is very,
very volitile right now – ‘Cause it’s gonna go up, down, sideways or in fucking circles. – No one knows what the future is. Yeah, it’s at 2800 dollars it could be you know, next year it
could be 10, 000 dollars or it could be down to 100 bucks. You don’t know because
right now it’s so volatile because no one knows
what’s ahead in the future. What if the government completely bans it or more merchants don’t believe in it or perhaps bitcoin and
ethereum all go to shit because another currency is even better and everyone goes towards that. OK, if you’re gonna invest in it, great, but don’t go all in on it because I have seen some some
fucking guys that are like “Man, I wanna dump my life
savings into bitcoin.” And I’m like you fucking idiot, that is gambling, that is risky and that comes from the perspective of a get rich quick scheme. Something else I wanna say is, you know, instead of
investing in bitcoin directly there’s other options. For instance, perhaps you could invest in bitcoin technology. So, I mean, that’s still risky itself ’cause a lot of bitcoin
technology are start-ups. You know, start-ups are risky by nature but perhaps there’s a lot more
bigger companies like IBM. IBM is doing a lot with cryptocurrency so you can invest in that because IBM is a proven company with like, I don’t know, a 100 year history, right. Alright Charles, so if you don’t recommend investing in bitcoin, what do you recommend investing in? So once again, I am not
a financial analyst, a financial advisor, or a hedge fund guy. I’m just a normal guy that does a lot of research
when it comes to money. So where I personally put my money is into index funds. So I’m a Boglehead, I put, you know, whatever investments I have I have 100% into, what is it, VTSAX, so I like Vanguard
Admiral Shares, alright. So I invest in the total stock market and I love Vanguard because it has the lowest expense ratio as possible. So with this, I mean, I don’t
think its gonna go to shit because if the stocks go to shit then that’s pretty much
saying that the US economy, or the world economy has crumbled. So that’s where I think
your money should go to because I automate my finances. All my, you know, a lot of my
investments go towards that. It’s diversified by nature because it’s investing in a whole
bunch of different companies and, you know, I don’t check it, like guys that are really into
bitcoin and all that stuff are checking on a daily basis, they’re checking multiple times a day and their emotions constantly fluctuate because of what the price is so it’s like 2000 one day, 3000 next
day, 2500 next day. That’s not the qualities
of a solid investment. Investment is something where
you set it and forget it. Like I wanna spend most of my
time on stuff that makes money such as mindfully marketing and then that money goes into something that’s income-producing which is my stocks. So that’s what I like. I like it because its proven, it’s diversified, low expense ratios, and its set it and forget it. So like I said, I don’t think investing in cryptocurrency
or bitcoin is a bad idea. I have money in it, I believe in the future of cryptocurrency, but you have to be smart about it. Do not make it a huge
part of your portfolio, it’s very speculative, it’s very volatile, no one knows what the future is. You know, like I said, I wanted to make this video because I think a lot of people
just have this FOMO, they have this fear of missing out, or maybe, I see a lot
of people that are like, “Man, you know, I’m not
doing too well financially. I wanna be a millionaire and, you know, I’m already like 30-something
so let’s take a gamble. Let’s go YOLO.” Because they’re thinking like “Man, if I just put all
my money in two years I’d be a millionaire right now.” But, you know, that’s not
the right way to think. One quote in investing is “if everyone’s saying it’s
hot, it’s already too late.” and that’s the way I feel about bitcoin. If everyone’s investing
and talking about it now then it almost feels as if it’s a bubble. So alright guys, I hope that was helpful. Once again, that’s not financial advice, that’s just me sharing my opinion. You know, focus on the
fundamentals of making money. Focus on what you’re good at. Real estate’s great, index funds’ great. Hope that helps you guys
out and hope you guys, you know, really do your
research when it comes to money. So if you guys liked this video, you guys know what to do next. Like, comment, subscribe and
I’ll make more videos for you. Take care, buh-bye. (electronic music)

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