Finance: A Few Words on Bitcoin

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I am, by far, no means a Bitcoin expert. Based on my historical data, you wouldn’t even think that Bitcoin falls within my financial game plan. I mean, I am the Debtist who is more interested in wiping my debt than taking the forgiveness plan in order to up my wealth accumulation game. I know I am giving up a lot of potential wealth in order to get rid of my debt. But I am not anti-wealth-accumulation altogether! I am keeping an eye on Bitcoin, and learning more as time goes on. To get to the main point of this post: I invest in Bitcoin because I think it’s a viable financial option, even for Debtists such as myself.

One of the most interesting things that has happened during the pandemic is the government’s postponement of student loan repayment. It has created the space for me to get a glimpse of what life would be like if I hadn’t chosen to pay back our debt aggressively. I got an idea of how much we are saving, and we have started to learn more about where we could be investing all that money.

I am still of the mind that paying back my debt aggressively is what I want to do. I can see how the debt accumulating in this country is leading up to the collapse of the economy. It is apparent to me that building our finances on debt can be extremely detrimental, and I use the economy at large as an example. Currently, the economy is controlled by the government, who has been inflating the value of a dollar by printing crazy amounts of money in the past few years (2020 and 2021 especially). We are printing money to cover our deficit, which even the Feds are warning against as it has been proven to be the demise of other countries in the past. But the printing hasn’t stopped, and neither has inflation. Meanwhile, the wages have not increased enough to offset the inflation rate, and the amount of goods in our economy hasn’t increased to match the money being printed. Due to the high inflation rate, it makes sense for people not to hold on to cash or an emergency fund, since the value of the dollar is declining. So people are putting their money in assets like real estate, stocks, bonds, etc – just to offset the inflation rate (and marginally!).

However, if Bitcoin becomes more prevalent as an alternative monetary system, then the way in which society deals with money will change. Bitcoin is an asset that should continue to gain value over time (as it stabilizes) because it is a limited asset. With that being the case, as more people use Bitcoin, we will switch to a society that values savings and emergency funds over putting their money in assets. A world of Bitcoin is a world in which I will do well – because I value being debt-free, having savings, having emergency funds, and owning something that increases in value.

Meanwhile, the fiat system will continue to inflate the dollar. Why? Because the fiat system is built on this foundation of debt. When we print more money without increasing the goods in the economy, we decrease the value of the dollar and cause inflation. We then create debt as people need more dollars to pay for things. At the same time, the value of bonds will decrease, which will lead to a distrust of the government. Less investors will place their money in bonds (aka lend their money to the government), which would require the government to increase interest rates. And how do you think the government will pay back the investors with such high interest rates when it comes time? When it comes time for the investors to collect their money, the government will need to print more money. Essentially, the creation of more money leads to the creation of more debt.

In a world where you have a choice between an asset that is deflating in value over an asset that is increasing in value, it can become quite obvious why people would choose Bitcoin. Now I am not a Bitcoin maximalist. I don’t think Bitcoin will completely replace the current monetary system. I don’t know if it will stay decentralized forever. I don’t think governments will sit back and allow it to completely usurp their way of life. I don’t think Bitcoin is without risk. I heard that 80% of all Bitcoin is owned by 2% of people, who have the power and ability to sway its price tremendously. I heard that 40% of Bitcoin mining happens in China, whose government has more control over their miners. I am not even so confident as to say I am betting on Bitcoin. I am not going to put 100% of my lifesavings in Bitcoin. I know there are people out there borrowing money and selling all they own to go fully into cryptocurrency. I am not about that.

BUT. I have bought Bitcoin and my husband has had the foresight to purchase and hold Bitcoin from over five years ago. I griped about it at the time since we were young and we had no money to play with. Plus Bitcoin was “new”, which is always scary. In hindsight, I am glad he did it and will never live down all that groaning. I, myself, started investing in it over this past year as insurance. If the probability of Bitcoin having a place in this market exists, wouldn’t you want to get in it? My thought is, “if Bitcoin does become a thing, I don’t really want to be the guy without any.

These are my few words on Bitcoin. Like I said, I am no expert. I am no Bitcoin maximalist. I have my doubts just like anyone. But I have my hopes too. I am not here to spread ‘facts’ about cryptocurrency (what are the facts these days?!). You can brush this off as simply musings from my desk.

However, if you wish to dabble in cryptocurrency, or like me, to insure yourself, you can easily set up a Coinbase account here (referral link!). If you use this link, you get $10 in free Bitcoin after you buy or sell your first $100 on Coinbase. If you are a student or someone who is tight on cash but hopes to be financially free one day, here is what I would do. Invest $100 in Bitcoin, and then just let it sit. Ignore the volatility that will surely exist in the coming years, but just think of it as a reserve for the just-in-case. Start there, and see where this pans out. Adjust later if you’d like. It’s not going to make you rich, but it’s a place to start with cryptocurrency. And it won’t break your bank or hinder your current plans. Then learn more about Bitcoin. Listen to podcasts or find tutorials on YouTube. I personally like the BTC episodes on The Investor’s Podcast (TIP). I recommend starting with episode 1 if you are starting from scratch. It helped me a lot to get the ball rolling.


Get free Bitcoin by signing up for a credit card that gives bitcoin for rewards! I personally use the Fold Debit Card (referral link!). For every purchase, you are granted free satoshis. I have always been a travel hacker, earning free rewards through normal spending and traveling the world for free. Well, I have since traded in my travel rewards for Bitcoin rewards. I watch my Bitcoin stash grow with every swipe. Whether you are planning for a big purchase, a big trip, or the holidays, I would definitely recommend applying for the Fold Debit Card now.

Other Recommendations

  • Earn $10 cash when you buy your first $5 in crypto on Paypal through my referral link.
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