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Investing Time vs. Spending Time

If I ask you how you spend your money, that's a very different question than if I ask how you invest your money. Your goals for spending and investing are different, and as a result your actions for each are different. So isn't it strange that we talk about how we spend time, but we never talk about how we invest time?

The interesting thing about investing time is that the distribution is much more uniform versus monetary wealth. Most people probably sleep for around 6-8 hours and work for around 8 hours, giving them another 8-10 hours to either invest or spend. Finances range much more wildly. Some people have negative net worths, so they can't even begin to think about investing, whereas others have billions of dollars. That spread means that ideal financial investment strategies will range wildly. Because we have such similar amounts of time, though, maybe there are some general principles that will be almost universally applicable.

Before we get into those strategies, though, let's talk about what investing time means. I'd define it as devoting time to an activity whose primary benefit won't immediately be realized. School is one example-- you can have a lot of fun in school and benefit immediately from it, but you're really going because you believe that it will pay off when you graduate. I'd say that school is sort of like investing in real estate. You can always use it for something, it's historically been a good investment, but it's a lot of leverae in one big investment, and recently hasn't performed as well.

Spending time with people and building relationships is an investment, not because that process isn't fun, but because the benefits of having strong long term friends are even greater than the immediate pleasure of hanging out with them. This could be analogized to investing in art-- you get to admire it every day, but the value of it increases over time as well.

Why You Should Probably Buy Bitcoins

In 2009, probably within the first couple months of its existence, I downloaded the Bitcoin client and began mining bitcoins. Back then it was really easy-- you could get hundreds of Bitcoins per week for free, but they weren't worth anything. Not wanting to waste my time, I deleted the Bitcoin client, and any bitcoins I had mined went along with it.

Last March I thought about Bitcoins again and decided to check up on them. As I read about the progress that had taken place in the preceding years and learned more about the technical aspects of Bitcoin, I was blown away. This is going to change the world, I thought.

So I bought a few when they were around $30 a coin, a few more at $80, and then again at $110. I'm not a Bitcoin millionaire or anything awesome like that, but percentage-wise, it's the best return I've ever gotten on anything. In case you don't fanatically check the price like I do, it's at around $825 per coin as I write this.

I'm going to write the rest of this blog post to explain why I think it's important that you buy some Bitcoins, but take it all with a grain of salt. I do know a fair amount about Bitcoin, but I don't know much about investing or, more importantly, your financial situation.

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