John Clark - Bitcoin Millionaire: How Cryptocurrency Changed My Life and How It Can Change Yours Too

Copyright 2018 by John Clark

All rights reserved. This book or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the publisher except for the use of brief quotations in a book review.

eBook ISBN: 978-1-54392-325-4

Any book titled Bitcoin Millionaire conjures up all sorts of ideas about the author in the minds of readers. Titles are important for marketing, but Im a pretty unremarkable guy. My story with Bitcoin is a story like many others, but I believe so strongly in Bitcoins ability to change peoples lives, I wanted to share with readers as much help as I can, including all the important lessons I learned along my own journey with Bitcoin.

If youre reading this book, chances are youre interested in cryptocurrencies and personal wealth. We are all fortunate to be living in one of the most exciting and transformative times both for individual sovereignty and the control of our own personal wealth. This book is about my story with the technology that has made all of this possible. The Bitcoin whitepaper was published in 2009 by an anonymous author under the pseudonym, Satoshi Nakamoto. No one knows for sure who Nakamoto is, or whether hes alive or dead, but none of that really matters. In fact, having an anonymous inventor is kind of cool, because theres no single person attached to this project. This makes it easier for the project to be universal, and accepted by all.

The Bitcoin whitepaper described how blockchain technology could facilitate a truly decentralized system in which trust was assured by the system components itself. Eliminating the need for a central authority, Bitcoin represented a paradigm shift in our approach to money. In the years since it was first introduced, Bitcoin has gone on a wild ride, from controversial curiosity, to legitimate asset class. Today, many investors are seeing how early adopters have benefited and theyre looking to make money on Bitcoin too.

Far from a technical book about Bitcoin, this is a story about my own experience investing in Bitcoin and the cryptocurrency space. While I do not hold myself out as an expert, I have been in investing in cryptocurrencies since 2012, and I owe the entirety of my current net worth to Bitcoin gains. My goal here isnt to brag about how much Ive made off Bitcoin, but only to show you that Ive enjoyed some modest success thanks to some great timing, trust, and a little luck. I cant share any secret investing strategies with you, because to be honest, there arent any. Anyone who tells you differently is trying to sell you something.

Crypto is a very new space, and so were writing the rules as we go. But for those of you with prior experience in investing, youll find some interesting realities about investing in Bitcoin that differ from your typical experience. If you keep an open mind, do lots of critical thinking, and put in the time needed to research, youll do better than most. In the chapters that follow, Ill share some of the experiences Ive had and how theyve led me to particular insights about investing in cryptocurrency. While Im no expert, I hope that my story can inspire you to start your own journey in the cryptocurrency space, especially as there are many exciting developments to come.

Before we begin, a word of caution: nothing in this book should be taken as investment advice. What worked for me just may not work for you. Moreover, because change is so rapid in the crypto space, what holds true at one time will not necessarily remain constant. My story is meant to excite you and help you understand what exactly is possible in this very new and very exciting industry. Sometimes Ill present a particular opinion, but I always try to explain why I feel a certain way, or choose to embrace a particular strategy. I want to explain the logic behind some of my decisions, so that you can make your own decisions. As a novice investor, I made lots of regrettable decisions along the way. Ive told many of the stories here to help keep you from repeating the same bad decisions, but what was a mistake for me, might be the right move for you. There are no easy answers, unfortunately. With all of that out of the way, Im going to start at the most appropriate place the start of my journey investing in Bitcoin.

I first heard about Bitcoin in 2011. I quickly dismissed it as nerd money. At the time, I was enrolled in graduate school and barely had enough to make ends meet. Weird internet investments were the last thing on my mind. So I pretty much forgot about it, and that was that. But I heard about Bitcoin again about a year later, in the summer of 2012. At the time, the price was about five bucks for a single coin. Things were different for me then. I was in my first research assistant job out of school, and I had some drinking money to play with. One night in June, my friend Dave was evangelizing Bitcoin and all the potential he saw. He didnt see it as nerd money.

Read the whitepaper, he said. We had just finished a game of pool and were on to our second pitcher. I still wasnt convinced.

Five bucks a coin seems insane, I said. Plus, I was aware of other risks.

...And what about last summer?

I felt reasonably confident in talking about Bitcoin with Dave at that point. He had talked to me enough about it to get me to do some research and pay attention to the goings-on in the Bitcoin world. I distinctly remember how he personally lost money in Mt. Goxs 2011 security breach. If you had spent any time with him around the time of the incident, he wouldve told you, too. When I brought up last summer, I was referencing his own loss and frustration at there being zero accountability after the fact.

At the time, Mt. Gox was the major exchange to buy and sell Bitcoin. It was based in Japan. It was run by incompetents. It took days to make transfers or purchases. It wasnt a great time to actually buy or use Bitcoin, to put it mildly. In June of 2011, Mt. Gox suffered its first major hack, leading to the loss of several users Bitcoin and concerns about security in the Bitcoin space. In the year since the event, Dave seemed much more confident.

Cold storage, he proclaimed confidently. Now, no one can get at my Bitcoin.

Eventually, I ran out of arguments to not buy-in. As much I had learned about Bitcoin at the time, Dave knew much more than I did. And he was passionate. He saw something that I didnt. Im quite glad he did. We finished our beer and wings and went back to Daves place where he helped facilitate my purchase of 20 bitcoins, which at the time, cost a little over $100. I couldnt rationalize investing any more at the time, but I remember thinking that $100 felt low enough that if it all disappeared overnight, I couldnt be too upset. Often times we dont realize some of the most important events in our lives at the time they are happening.

Dave and I talked about Bitcoin a few more times in the weeks following my first buy, but other than that, I mostly forgot about the coins. I remember needing to take my dog to the vet and getting an expensive bill. I wasnt sure that my choice to spend the $100 on internet money was the best one, but I figured I could always just sell them if necessary. Thankfully, I was able to budget and pay for my dogs operation, while also keeping the lights on. It was a stressful time. But just a few weeks later, everything changed.