Crypto Craze

Crypto Craze

Everybody's talking about Bitcoin [and other crypto currencies] right now. The people who invested recently are seeing massive returns. The thing that concerns me about that is it's been around less than a decade. We have had a chance to watch what Bitcoin does in different market trends. We don't know what happens when the market goes down. We've only been seeing this thing as the market has been climbing.

Now, I would compare that to something that has much more longevity like real estate. Real estate can be a very safe investment if you know what you are doing. It's been around for 60,000 years. We have at least 200-years of solid data on it.

If you look at 2008, what happened was you had a bunch of amateur investors getting into a market that they knew nothing about. When the market changed and started to drop, people started to lose money. Now the amateurs are the ones that lost the money. The educated investors they were the ones that capitalized from that whole market fluctuation.

I have a lot of friends who made millions in 2008 on real estate. What I've constantly encouraged investors to do, especially as they go from amateur investors to educated investors, is to focus on a market that they can look at and have trends that they could follow, that they can historically go back and use data that we have from history to make smart investment decisions moving forward in the future.

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