Having Three Kids And Investing In Cryptocurrencies Seems To Be The Way To Go
Warren Buffet’s rules for investing are: Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1. But that’s not reality. So if you aren’t Warren Buffet, the #1 rule when investing is to never invest money that you can't afford to lose. Quite simply all investments involve some degree of risk. And that’s why you shouldn’t bet the house on it. However, this is opposite of what Don Conway did.
Don was a 45-year-old middle manager at a major multi-media company in San Francisco, who earned $150k per year, what hated Corporate America. In mid-2015 Don stumbled upon an article about Bitcoin where it read Bitcoin fell from 2013 at a price of $1200 to $300. Don’s mind started racing and the more he read, the more he wanted in, but it wasn’t Bitcoin, it was Ethereum.
Despite having a wife, three kids and house, a year later, he put their life savings of about $100k in Ethereum and bought 6,993 Eth for $14/each. By December, the $100k investment was worth less than $40k. That’s when Don went in again. He took out a home equity loan for $200k and bought more Ethereum. Don now owned 26,750 Ethereum at an average buy-in of $11.21/each.
In January 2018, Ethereum topped $1,000. He got the urge to sell, and sell he did. It was a market timer’s dream, as he sold most of his Ethereum position for a cool $10 million.
Then there is Didi Taihuttu, his wife, and three kids.
When the price of bitcoin collapsed in 2018, Taihuttu added more to his investment portfolio. He says he was always a firm believer that the cryptocurrency was poised for a major rebound. “I think in this bull cycle, we are going to see a minimal peak of $100,000. I won’t be surprised if it hits $200,000 by 2022.”
Taihuttu bought the bulk of his bitcoin holdings when it was was trading at around $900 in early 2017, just months before it reached nearly $20,000 a coin.
Even as bitcoin peaked, the family stayed invested in the cryptocurrency. Once the bubble burst, and the price tumbled down to about $3,000 in early 2018, Taihuttu and his family weren’t deterred. “When bitcoin dipped, we started to buy more.”
I currently have two kids, reading about Don and Didi got me thinking about having a third child.
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