- Hey, welcome back.
It's the hot topic,
it's the thing everyone is talking about right now,
it's Bitcoin.
(dinging)
And today we're gonna discuss
how to purchase it in Canada.
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Okay, so let's get into it.
Let's discuss Bitcoin.
And before I start, I'm gonna make a disclaimer.
I am not an expert in Bitcoin.
I am not an expert in investing.
These are my opinions and my opinions alone.
Please don't make this like the silver and gold video
where all the Bitcoin faithfuls
get in here and start slamming me,
and getting into the comments,
and absolutely going after me personally,
because all this is is a video
where I'm gonna do my best to describe Bitcoin
in layman's terms so people can understand it,
why they should invest in it, and how to buy it in Canada.
So Bitcoin enthusiasts, leave me alone.
This is a video for informational purposes only,
and I'm not gonna pretend to be an expert
on Bitcoin because I'm not.
But that being said,
I think this is an asset class that cannot be avoided,
it cannot be ignored, and it needs to become
a part of people's portfolios as we go forward,
and as more and more companies accept it
as a legitimate form of currency.
So let's start with the basics of Bitcoin.
And this is the basic, basic, basic basics.
Geez, how many basics was that?
Okay, so the basics of it are this,
it is a currency that was designed
to be free of intervention from banks and governments.
And it's mined by computers
that solve progressively harder puzzles.
And once a puzzle is solved, a Bitcoin is earned.
And this is where you hear about companies having
huge massive computer centers
that are designed solely for mining Bitcoin.
That's what they're doing,
they're trying to solve puzzles with computers.
Now I've avoided cryptocurrencies forever
because I just didn't feel comfortable with the volatility.
I mean, just today alone,
the price range of Bitcoin has been
from $35,000 to $49,000 Canadian.
And that's just in a single 24 hour period.
So this is a highly volatile investment.
And what I really don't love about it is that
a single buyer or seller
can really move the value of Bitcoin.
I mean, those trades that made the price drop
from 49,000 down to $35,000,
that is likely one investor
who was selling a whole bunch of Bitcoin all at once.
And as a result,
basically tanked the market on a single day.
He probably sold a pretty significant amount.
And as a result, that's why the price dropped.
However, Bitcoin as an asset class,
and cryptocurrency as an asset class
is becoming really, really, really hard to ignore.
The reason why is because since 2009,
it has had a 9,000,000% increase in value.
9,000,000%.
That is unbelievable.
In fact, it has been the single best performing asset class
of the last decade.
Now quick sidebar here, what you need to understand
if you are investing in Bitcoin,
or any other cryptocurrency for that matter,
is that you're speculating on demand.
So the demand of the market, the demand of buyers.
If there are lots of buyers who want it,
the price is going to go up.
If there are not a lot of buyers who want it,
the price is going to go down.
And what you're doing by saying, yes,
I'm going to invest in a cryptocurrency,
is you're saying that I think
more people are going to want it.
The supply is pretty much defined.
We know that Bitcoin is only ever going to have
21 million Bitcoins,
18 and a half million of them have already been mined.
So realistically we are not expecting there to be
a surge in Bitcoins, which will devalue it.
Basically, when we're making this investment,
we are investing solely in the expectation
that more people are going to want it more,
investors are going to want it.
And maybe even the governments are going to want it.
So keep in mind that that's what you're speculating on,
is demand.
Now 2020 has shown that cryptocurrency
is definitely gaining mainstream attention.
Companies like PayPal are now accepting it.
And AMEX is investing in cryptocurrencies.
And you can get it and buy it
with investing platforms like Wealthsimple and Robinhood,
which is basically an indication
that it is gaining mainstream acceptance.
I mean, you can even buy a Lamborghini now with Bitcoin.
And as a result, it's starting to make sense to own it
as part of a portfolio.
I'm not saying put your entire net worth into Bitcoin.
But what I am saying is that
a small percentage of your portfolio
should definitely be invested into cryptocurrencies.
And when I say small, I mean really small, one to 2%.
I'm treating this like gold or silver.
A store of value, a hedge against inflation,
and something that I want to hold
very minimally in my portfolio.
I definitely want to make sure
that I can take advantage of the potential upside,
but I don't want to risk my entire net worth
on something that is hard to understand,
and that is demand-driven.
Because what you have to remember
about investing in something like cryptocurrency,
is it's not like investing in a GM or a Ford
that has a long history of making products,
and making profits, and has assets.
No, what you're investing in
is something that is theoretical,
and something that people give the value to,
just like they give value to any other currency.
People trust the American dollar or the Canadian dollar,
and that's why it has value.
People are beginning to trust cryptocurrencies
more and more,
but understand that that they aren't something
that makes value.
They're simply something that has value.
And that's because we as citizens give it to them.
Now for me, I want to make sure that I'm investing
in cryptocurrency in a safe and secure manner.
And it seems that the go-to place to invest
in cryptocurrency seems to be Coinbase.
Now, that being said,
I'm gonna go a different direction,
I'm going to invest in Mogo.
And the reason why is because it's simple,
super safe, and secure,
and I don't really need the ability to take my Bitcoin
and put it onto a virtual wallet that I can travel with.
I simply need a place to hold it
so I can have it as part of my portfolio.
And the easiest and most simple way to do that
is to use Mogo.
(dinging)
For me, it took less than five minutes
to set up my Mogo account.
I was able to fund the account in less than 30 minutes
using an Interac e-Transfer,
and basically inside an hour,
I had made my first purchase of Bitcoin.
Now Mogo also gave me $5 for activating the account.
Then they gave me $5 for funding the account.
So after I funded the account,
I had an extra $10 to invest of their money,
which I thought was great.
Anytime a company will let me start
from a position of being ahead,
I am definitely a happy man.
Once the account is funded, it becomes real easy to invest.
All you do is you click the transaction button,
you select buy, enter the amount that you want to buy,
and then complete the transaction.
Really simple.
For me, I'm gonna start small.
I'm gonna invest a thousand dollars in Bitcoin.
And because it's so volatile, I mean, just today alone,
that 49,000 to $35,000 spread,
I want to be careful about how I go about investing in this.
So what I'm gonna do is dollar cost averaging.
And what I've set up is a calendar reminder
for every Monday to invest $100 over 10 weeks.
And I'm just going to take the emotion out of it,
buy a hundred dollars at a time.
If it goes up in value, so be it,
if it goes down in value, hey, I got a deal.
The only exception to this will be
if there's a big single day drop in the value of Bitcoin,
I may move up my purchasing from Monday
to whatever day the value of Bitcoin dropped.
Now, this is a little bit different type of investment
than a stock or bond
where you can only buy it
during certain hours during the week.
There are opportunities to purchase Bitcoin 24/7, any time.
Which means that if you're doing dollar cost averaging,
and you want to buy on dips,
that you want to be paying attention to
what's going on in the market.
And Mogo is great because it will send notifications
based on what's happening with the price of Bitcoin
at any given time.
So I know I'm covered in that aspect as well.
Then I'm eventually going to work up to 1% or 2%
of the value of my stock portfolio in Bitcoin holdings.
Again, I'm treating this very much like gold or silver
as a hedge against inflation.
And eventually, once I get to my limit
that I want to purchase in my portfolio,
which is probably gonna be 2%,
then what I'll do is quarterly rebalancing.
And what that means is that if Bitcoin goes
above 2% of my portfolio value,
I'm going to sell it off and bring it back
so that the Bitcoin holdings are only 2%.
And if they drop and become less than 2%
of the value of my portfolio,
then what I'm gonna do is I'm going to buy more,
and bring it up to 2%.
And that way I'm taking the emotion
of buying and selling Bitcoin
completely out of the equation.
And all I'm doing is doing a very unemotional rebalance
once a quarter to make sure
that I'm not owning too much of it,
or that I don't know too little of it.
And as a result of that,
what'll end up happening is that
if the value goes down,
I'm going to end up buying more at a lower price.
And if the value goes up, I'm selling at a higher price,
with ultimately the goal being to increase the value
of my holdings in Bitcoin
in line with the rest of my portfolio.
Obviously using Mogo is what makes this really easy
because making a transaction on Mogo is super simple.
The other thing I like about Mogo
is how safe and secure it is.
One, it's a Canadian company.
So I know that they're governed by the rules of my country,
not the rules of somebody else's country.
And also 95% of the Bitcoin that Mogo holds
for its members is held in what's called cold storage.
And what cold storage means
is that it is disconnected from the internet.
So there's no way to get in and hack it and steal it.
It's completely separate and disconnected from the servers
and everything else, so that it is safe and secure.
And that to me means a lot.
And to me, that is a better option than having it
in a digital wallet that's, you know, at home.
And that I have to remember where I put it,
and remember all the passwords and everything else.
Mogo has just taking care of the safety and security of it
for me, which I love.
Now of course, Mogo, isn't anonymous.
It isn't the type of place you want to invest.
If you are trying to hide your money,
or do money laundering, or stuff like that.
That's not what I'm doing.
I'm not using it to try to avoid paying taxes,
or anything else like that.
I'm simply using Mogo to hold it
so that I can have cryptocurrency in my portfolio
without having to worry about risking
a huge amount of my net worth.
So for me, the safety, the ease,
and not having to worry about where I put a digital wallet
or worry about getting hacked is huge.
And that is why I'm using Mogo.
Now, if you want to use Mogo as well,
there's a link in the description below,
it'll get you that $5.
Obviously I'll get compensated a little bit for that.
So it helps, helps me pay for the cost
of making these videos and whatnot.
I absolutely appreciate that if you use it.
And if you found value in this video,
do me that favor, hit that Subscribe button,
hit that notification bell.
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Cheers.