TL/DR:
- as a parent without bitcoin, life will get harder
- as a parent with bitcoin, life will get easier
Last week, I got a letter from Jackson’s school.
It was clear this was a tuition bill. And I knew it was going to be a large bill too.
There was no way to miss the fact that $35,000 was due. The amount was bolded, highlighted, and in large font at the top. And in order to lock in Jackson’s spot, I needed to pay in full by the end of the month.
In the past, even though I knew a big bill was coming, I would still stress about how to pay for it. Maybe it meant transferring money over from the emergency fund. Or selling some stocks. Or eating out less leading up to it.
However, last week, when I received the tuition bill, I didn’t stress at all. Instead, I just turned around, paid for it, and went back to my life.
As a parent, that was a really good feeling.
There was zero stress involved. And zero anxiety about how / where the money would come from.
Now, to be clear, the reason I’m telling you this is NOT to brag. Rather, I want every parent to have that feeling, just like I did. And it’s something I think every parent can experience too!
Below, I’m going to show you how it’s possible by laying out two different paths:
- the default path most parents are on, where life keeps getting harder
- a new and different bitcoin path where life starts getting easier
After seeing both, I bet you’ll have an “ah ha” moment how bitcoin can help your family…just like it has helped my family, and continues to help my family too.
Let me explain!
Life without bitcoin
I don’t know about you, but as a parent, I’m aware of how much things cost.
In the past few years:
- my average grocery bill has gone up
- utilities cost more
- it is more expensive to eat out
- the hourly rate to hire help (nanny, cleaner, handyman) is higher too
On top of that, I’ve also noticed that the price of everything is going up faster than Tiffany or I get a raise. Now, I’m not a rocket scientist, but in the long run, I know this is NOT sustainable.
It’s not sustainable because as things get more expensive, more of each paycheck goes towards covering the basics needed to stay afloat. And that means less money is being set aside for savings or a rainy day.
This is dangerous! As parents, we intuitively know accidents will happen and emergencies will pop up…which WILL require money to pay for. All the while…less and less money is available.
It’s like walking a tight rope where any slip could spell disaster. And this is what I mean when I say life is getting harder.
But here is the thing…
It wasn’t always like this
When our grandparents were in their prime, it used to be that one person worked, and that job was enough to buy a house and provide (roughly) live a middle class lifestyle for the family.
Then it shifted.
When our parents were in their prime, it became more common for both parents to work in order to buy a house and provide for the family. But they could still (roughly) maintain that middle class lifestyle.
And now, it has shifted again.
Even though both parents are working, for many, it still isn’t enough to buy a house, provide for their family, and slowly to get ahead in life.
“Why” this is happening requires a deep dive into macroeconomics, monetary history, and more…and it is a deep dive we we will take together later.
But for now, just looking at the data, we can see that life is getting harder:
- more than 60% of Americans are living paycheck-to-paycheck (source)
- 40% have less than three months of expenses saved (source)
- the average American has over $6,000 in credit card debt (source)
Again, not to beat a dead horse, but this path is not sustainable.
Want to buy a house?
The average price of a house in the United States is nearly $540,000 (ie. more than HALF A MILLION dollars) (source). Just 5 years ago in 2017, that house would have cost $385,000.
That is a massive $155,000 increase…in just 5 years!
So unless you got a massive raise at work, sorry to be the bearer of bad news, but life got harder for any family trying to buy a house in 2023 vs. 2017.
And sorry to continue being the bearer of bad news, but things will KEEP getting more and more expensive in the future too (ie. your grocery bill will never be as cheap as it was a few years ago and school tuition fees aren’t going down).
Ouch.
Now, before this gets too depressing, let me show you an entirely different path.
A happier and easier path.
Life with bitcoin
I know it sounds a bit crazy, but by owning bitcoin, you will start seeing things getting CHEAPER over time.
Yes, I said it. Instead of things getting more expensive, things will get CHEAPER and easier to afford.
I know, I know…this sounds too good to be true.
So let me explain. And this is important because once you have this “ah ha” moment, I bet you’ll see bitcoin in a whole new way.
Hungry?
Back in 2011, some guy paid 10,000 bitcoins in order to buy two large Papa John’s pizzas for his family (source: Investopedia).
Can you believe that? TEN THOUSAND bitcoins!
Now fast forward two years. In 2013, a reporter paid “just” 10 bitcoin for a large group to eat a sushi dinner (source: New York Times)
And remember, 10 is WAY less than 10,000!
Now, fast forward again.
In 2023, you can buy a brand new Tesla Model Y for just 1-2 bitcoin (ie. 1 bitcoin = $31,000 USD as of this writing and a Tesla Model Y costs ~$47,000 USD).
So now, imagine you are that reporter from 2013 with 10 bitcoin. But imagine, instead of using your bitcoin to buy the meal, you held onto it instead.
Now, as that reporter, 10 years later, you could use just 1-2 of those bitcoin to buy yourself a new car! And you’d still have 8 bitcoin left over for other life expenses, like tuition bills, vacations, home renovation projects, and more.
Wild, right?
What is more wild is that by following this rough trajectory, in 2030, 1 bitcoin might be able to buy a house! (or at least be enough to cover a big chunk of the down payment)
I’m getting carried away…let’s get back to the main point.
The main takeaway is that with bitcoin, life gets easier because things get more affordable. And as a parent, this is a good thing.
How to get on this path?
All you have to do it buy and hold some bitcoin.
Then, just wait. And wait.
And wait some more.
The longer you can afford to wait, the more stuff that the bitcoin will be able to afford.
For the reporter in the example above, if they held onto their bitcoin for 10 years, they would’ve seen that instead of just being able to afford a meal for 10 bitcoin, they could now buy a new car PLUS have 8 bitcoin left over in their emergency fund!
Over time, as a parent, as I’ve continued seeing bitcoin become more valuable, I find that the stress of how I’m going to afford to pay for groceries, or diapers, or school tuition bills just goes away.
And that is a good thing!
The choice is yours
Would you rather live a life where things are continuously getting more expensive? A life where you have to work harder and harder just to provide for your family?
Or would you rather move on a path where life is getting cheaper? One where you don’t have to stress about how you are going to pay the tuition bill or any other big ticket item that pops up?
As a parent, this is the easiest decision I’ve made. I choose to own bitcoin in my family’s long term portfolio.
And guess what, you get to make the choice too!
Misconception #1: “you were early, I am late”
At this point, you might be thinking, nice story…but “I am late” and won’t see that kind of upside.
This is a big misconception. Actually, the best days are still ahead.
Jesse Myers, a fellow Bitcoiner, Stanford MBA graduate, and former Bain consultant came to this same conclusion – expecting bitcoin to be worth a whopping $10 million a coin in the future (source: Substack).
Exactly when? Of course, no one knows for sure.
But his analysis is spot on about big the opportunity is. What I’m trying to say is, you are not LATE to bitcoin. Instead, if anything, in 2023, we are still very early.
That’s why I’m holding and not selling anytime soon.
Misconception #2: “I bought bitcoin yesterday…life isn’t easier yet”
Zoom out.
There is a lot of noise when comparing the price of bitcoin now vs. what it was 1 minute ago. Similarly, versus yesterday, last week, last month, or even last year.
This is just short term volatility. Ignore the noise.
Instead, zoom out further and look at the price of bitcoin over a multi year horizon. And when you do, it becomes very clear what is happening.
The price is going up!
Conclusion
When you own bitcoin, life get easier. However, it doesn’t happen overnight.
But, if you can just hold on, you will see that things around you are becoming more affordable!
Next
Thank you for reading the bitcoin for parents series. I hope you’ve had some real “ah ha” moments along the way about what bitcoin is, and more importantly, why you should care.
If you got value out of this series, feel free to subscribe so I can let you know when my next bitcoin for parents series is published. In it, we’ll go one level deeper down the bitcoin rabbit hole so you. This includes where to buy it, how much to buy, when to buy, and more. Again, no jargon. No technobabble. And no complicated strategies involved.
Until next time!