AIE 178: Bitcoin: Have Fun Staying Poor

You can’t talk about Bitcoin without starting with defining cryptocurrency. When you think about it, even the US dollar is somewhat digital. What makes cryptocurrency different is that it’s decentralized. Bitcoin started as a cryptocurrency, but it’s morphed over time to a store of value and hedge against inflation. Andy emphasizes that Bitcoin is very much in its infancy. He goes on to explain mining, the global ledger, blockchain, and how it all fits together. Andy explains how Bitcoin is inflating, and how the supply of Bitcoin is pre-programmed. Lauren wonders who created this interesting new space? Andy explains that no one exactly knows who Satoshi Nakamoto is/was. This person’s or group’s Bitcoin has not been touched, which has 1 million Bitcoin in it (worth billions of dollars). Lauren also asks about who mines Bitcoin currently and who will be doing it in the future. Recently, Bitcoin went through one of its “halving” instances, which decreased profitability in the short-term. Andy himself has 25 machines mining Bitcoin. Lauren asks about other cryptocurrencies, of which there are over ten thousand. In short, most are scams. Lauren asks Andy to discuss his portfolio. About 40% of his crypto portfolio is Bitcoin. And about 60-70% of his overall portfolio is crypto. Again, Andy emphasizes how young the cryptocurrency space is. Lauren also has to ask why crypto enthusiasts keep telling her to have fun staying poor, and Andy has a great answer for that. Andy is a believer in Bitcoin as an inflation hedge. Then, the conversation transitions to the future of Bitcoin. He’s obviously very optimistic about the future, but we need to remember that this is still a bit of an experiment. Lauren is also curious about custody of Bitcoin, which is a great feature for those in other countries because you can access your money with your password and the government can’t take it from you. But you don’t have to go that route. Then, the two transition to discussing Bitcoin ETFs. These transactions are not recorded in the blockchain. Surprisingly (or maybe not?), Andy holds some Bitcoin ETFs in a Roth IRA. Finally, he encourages you to keep learning if you interest is piqued at all.

If you liked this episode, you’ll also like episode 62, the first time Lauren interviewed Andy.

About Andy:

Andy has been in crypto for 7+ years, is a Bitcoin miner, a content creator on YouTube and Twitter, and a passive income enthusiast.

Connect with Andy:

https://youtube.com/c/YourFriendAndy

https://youtube.com/@andyandfriends

https://passivebites.beehiiv.com/subscribe

Connect with Lauren: https://twitter.com/AdultingIsEasy https://www.realadultingiseasy.com/ https://www.instagram.com/adultingiseasyreal/