Unless you’ve been living under a rock lately, you know that there are two major news media talking points, the tax reform package about to be signed into law and Bitcoin mania. Bitcoin is cryptocurrency, or digital currency that exists as a mathematical (algorithm) equation that is processed via a computer device. Unlike the Dollar or the Peso, cryptocurrency has no official government backer. Instead cryptocurrency is backed by the belief that it has some value. Of all the cryptocurrencies, Bitcoin is the most famous.
Besides the fact that it is not “paper” money and that it is supposed to be untraceable, the Bitcoin mania is being driven by its value’s explosive growth over the last year. People are hoping to get rich through Bitcoin speculation.
As you might remember, back in March 2015, I started mining for Bitcoin. It was an experiment that I embarked upon because I had extra computing devices and I do not pay for electricity in my office. In other words, other then labor, I had no expenses to setup my Bitcoin mining operation. As I wrote in the original article, I was a little late to the game. But, the allure of technology and mining for value through computer bits and bytes got me interested in some experimentation.
I turned on my mining contraption and just let it hum along. I didn’t check on it for months and even forgot about it for some time. Of course, when Bitcoin came back it into the news, I remembered my mining contraption and went to check to see how many Bitcoins I had. Just kidding, I was thinking that my little Bitcoin experiment was going to be a bust.
Imagine my surprise that when I checked my Bitcoin wallet I found 0.000002 BTC. That’s about $0.04 USD in yesterday’s exchange rate.
Ok, so I wasn’t rich, but it was fun to see Bitcoin in my wallet.
Anyone that knows me knows that I like to gamble. I make bets and I like to play Blackjack at the casinos. However, I’m also known for judiciously setting aside what I’m going to gamble and not deviate from that even if I lose it all or, if I am winning.
I also day trade the stock market regularly. It’s to satisfy my gambling addiction.
As the Bitcoin craze was taking off, I decided to invest $1,000 in Bitcoin, Ethereum and Litecoin, two other cryptocurrencies. I won’t be surprised if I lose the $1,000 because speculating in cryptocurrencies is highly speculative that could lead to the total loss of the initial investment.
Like all gambling that I do, I have a plan. I invested $500 in BTC and $250 each on ETH and LTC. My plan is to keep an eye on the exchange rate and as soon as any of my cryptocurrencies doubles, I’ll convert half of it back into USD. I hope that each of them doubles and I get my $1,000 investment back in full.
The rest, if any is left, I plan on “riding” the cryptocurrency wave for as long as it looks promising to me, or I get bored. Or, I lose it all.
There is certain joy in looking at my cryptocurrency portfolio during the day and seeing the value fluctuate widely. It’s gambling fun. My crypto coins were up yesterday.
For those of you interested in riding the crypto gambling wave with me without losing any money, here are the values in my crypto wallet:
As of around 13:00ET, yesterday, my cryptocurrency portfolio was worth $1,370.49. Remember, my initial investment was $1,000 USD. The LTC has almost doubled. The ETH is up, and although BTC is up a tiny bit, it has been tanking the last couple of days.
Maybe the bubble has burst, or maybe it’s just a market correction, who knows?
As I continue down this gambling experience, I’ll keep you posted on when, if ever, I cash out my initial investment in each cryptocurrency, or if I lose all my money along the way.