Bitcoin regret is running rampant these days. But it turns out, those who didn’t buy or ‘hodl’ Bitcoin before the bull run need not feel left out. There is still a way for everyone else to ride the current Bitcoin bull, and it doesn’t involve buying Bitcoin.
For the first time, the price of Bitcoin surpassed US$55,000 this week, reaching another all-time-high as more institutional investors take notice.
And just like in the last quarter of 2017, media outlets followed-up with articles that are sure to stir up feelings of Bitcoin regret.
Several financial news sources, for example, published articles on how we could’ve been sitting on US$48 million right now if we bought $100 of Bitcoin in 2009, or why we should’ve invested $1,000 in Bitcoin in 2010.
One article even calculates how much $100 of Bitcoin bought every December since 2010 is worth today. And according to that article, those who thought about buying Bitcoin as late as December 2020 but didn’t could be regretting not making 230% in gains today.
Bitcoin regret and hindsight bias
When it comes to Bitcoin regret, I’ve been there. I’m pretty sure I’m still in the “I should’ve bought more” camp.
But there’s no point in dwelling on our past actions or inaction.
That’s because with Bitcoin regret or any regret, for that matter, we all suffer from a type of hindsight bias that tricks us into thinking that we could have made a better decision than our past selves.
Hindsight bias is a phenomenon that makes our brains think that we knew something all along.
It makes us susceptible to overestimate our ability to make rational decisions based on a distorted view of the past. This is because when we look back on our past experiences, we tend to muddle past events with our current knowledge.
So, the passing thought that made us go, ‘Bitcoin is interesting’ back in 2010 becomes, ‘I knew Bitcoin is a great investment, so I should buy some’ when we recall our 2010 memory today.
That’s hindsight bias.
It means that you probably never would’ve bought Bitcoin back then, anyway. Or that it’s just as likely that you would’ve bought high and sold low, rather than hodl through the years.
So, don’t beat yourself up over your regrets. It just means you never really lost anything.
But it also means there are lessons to be learned and other opportunities to be gained.
Sure, you missed out on turning your 2010 dollars into Bitcoin millions, but there are a lot of ways to ride the Bitcoin bull, without buying Bitcoin.
A word of caution: Keep in mind that this is not financial advice. I am not telling you to go and buy any of the altcoins mentioned or to do any of the suggestions identified here.
And as with anything related to money—do your research because there is no guarantee that you can double your money in altcoins.
So, with that disclaimer out of the way…
Exploring Altcoins
Bitcoin is just one cryptocurrency in a sea of thousands of cryptocurrencies.
Those who feel Bitcoin regret could find their consolation in these other cryptocurrencies or ‘altcoins’ (a.k.a. alternative coins to Bitcoin) that have launched after Bitcoin.
But not all altcoins are created equal. Some are good, some are bad, some are really bad, and most of them are likely scams and money grabs.
But, unlike Bitcoin, altcoins are way cheaper and the possibility of rewards (and risks) are much, much higher.
With Bitcoin, for example, if you buy at today’s US$50,000 price, it will require Bitcoin to reach US$100,000 for you to double your investment.
However, compared to an altcoin like HIVE, which is trading at just US$0.27 per coin, you would have quadrupled your investment if it reaches just US$1.
Granted, Bitcoin is very likely to rise higher than US$100,000 in the future, but you will be missing out if you don’t look into other altcoins whose growth potential could very much outpace Bitcoin in the future.
So, how do you separate the good and the bad?
A look at CoinMarketCap’s top cryptocurrencies by market capitalization could be a starting point to your research. Aside from listing all the altcoins in the market, CoinMarketCap lists what people are buying and at how much.
Then, it all boils down to good ol’ research and due diligence. And while the topic of ‘how to choose an altcoin’ will fill up an entire series of posts, a few questions to consider would be:
- How big or small is the altcoin’s market capitalization? Market capitalization could be an indicator of the altcoin’s riskiness, its growth potential, and, in the case of cryptocurrencies, its popularity.
- How active is the project? An active development team means that the altcoin’s underlying technology will always be improved and updated. It could also differentiate a legitimate project from a scam.
- How strong is the community behind the project? Next to technology, the presence of a strong community that could rally around the project could make or break a cryptocurrency.
Just remember, with altcoins it’s like the wild west, all over again. So take precautions and don’t spend more than you are willing to lose.
Write, Play, or (Insert whatever action) to Earn
When it comes to money, I am very loss averse. This probably explains why I didn’t spend more on Bitcoin and Ethereum before.
The good news is that blockchain technologies and cryptocurrencies have ushered in the tokenization of the web, where every action is given value and rewarded.
This gives other loss-averse individuals the chance to earn cryptocurrencies not by exchanging fiat (i.e. traditional money) for their coins, but by exchanging their time, attention, or talents instead.
Writers can write on blockchain-based blogging platforms in exchange for cryptocurrencies.
Gamers can play blockchain-based online games in exchange for cryptocurrencies.
And a whole lot of other actions from commenting and liking posts, to microblogging, and even completing a simple internet search can be completed to earn cryptocurrencies.
It’s just a matter of finding where these opportunities are available.
Leo, Hive, and Beyond
If you’re reading this post, you’ve already found one such platform.
This post is published on Leofinance.io, a niche blogging platform for cryptocurrency and finance content where bloggers are paid to blog.
It is a second-layer app built on the Hive blockchain.
As far as earning cryptocurrencies are concerned, this means that posts published on LeoFinance will earn both the LeoFinance tokens (LEO) and the HIVE coins. It also means that in this platform, a single action has the potential to earn multiple coins.
But, what’s interesting about LEO and Leofinance is the ability to convert the LEO token into wLEO, an Ethereum-based token, which bridges the Hive and Ethereum blockchains, in case you would rather receive ETH rewards for your content.
And because it is a niche platform, it is also a good place for those new to cryptocurrencies to read about Bitcoin and other cryptocurrencies.
Yes, it will take some time, and maybe a little more effort to grow your cryptocurrency portfolio this way, but it is also a less risky way to get started in cryptocurrency and get over your FOMO woes.
Disclaimer: This post is not financial advice. It’s just a good old-fashioned opinion written to encourage conversation and provide commentary. In other words, don’t just take my word for it—do your due diligence.