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Why You Should Care About Bitcoin

It’s not just for $GME groupies and those Deeply Online. Here’s why.


How do you do, fellow kids?

Today, we’re gonna break the fourth wall a bit here and try to level with you. Like that cringey 30 year old substitute teacher trying to relate to the youths in his Grade 12 humanities class. Only you’re not kids, and we’re not accredited to teach you. So.

*spins chair around, does that weird wide-legged sit thing* (why did they do this)

Let’s talk cryptocurrency. Don’t click away! Stay here. Dare you.

Why are we writing this blog? Because we’re big believers in helping you understand why we do what we do. Over the last year or so, we’ve been receiving feedback from our favourite people in the world—our users—on how you perceive Mogo’s relationship with Bitcoin and cryptocurrency. You said two things that gave us pause:

  • Mogo, you talk about wanting to help make me a millionaire, but then you pressure me to invest in bitcoin, an incredibly volatile asset known for potentially making people into… nothing-aires.


And we realized, oh damn! We love bitcoin, but have not done a good enough job demonstrating why bitcoin could be relevant to your financial circumstances. To a ton of folks, BTC seems like this lofty phenom reserved to crowds of the Very Online—but that just doesn’t have to be true.

So give us 5 minutes, and we’ll tell you why you should care about bitcoin.


Bitcoin Is Going Mainstream

In a sentence, we believe Bitcoin is here to stay. Although crypto has retained this weird, esoteric, nerdy vibe that it has had since its inception in 2008, it is regularly engaged by folks not belonging to the “Basement Dweller” archetype. It’s true.

In 2019, CNBC reported that the Bank of America had secured dozens of blockchain-related patents over the last half decade. As of 2020, BoA was considering transactions of the crypto-variety a Cash Equivalent. JPMorgan Chase, which is the biggest bank in the US, was also accepting crypto exchanges as banking clients.

If we know one thing about banks, it's that they’re unwieldy and slow to change. So if these huge institutions are embracing crypto, this tells us BTC—or at the very least, the decentralized blockchain mechanism—is here to stay.

This is the first reason you should care about bitcoin (and crypto): it’s not going anywhere. It will continue to play a prominent role in the world’s financial system.

Even if you never invest in bitcoin, which we wholly respect and understand, knowing how this market player works will give you greater agency to act in the financial landscape.

So we talk about bitcoin not because we think you need to buy it OR ELSE, but because we think it’s going to be an integral part of the way currency looks and changes in the future and we want to keep you informed.

Think of bitcoin like electric cars: you don’t have to buy one, or even be interested, but you should be aware of how they’re going to change the automotive landscape.

Bitcoin Has a Place in Your Investments, Only If You Want It

This is our stance on bitcoin. It is cool, it is potentially really, really valuable, it is a viable means of growing wealth for many people, and (we think) it is here to stay.

But.

:)

It is volatile.

So why, you’re probably thinking, would we ever recommend you even pay attention to something that could lose you money? This is a really good, fair question that we’re really glad you’ve been asking.

We’re into the crypto space because we consider assets like bitcoin not as a primary site of investment, but as a supplement to much longer term and lower risk financial investments.

You should always treat volatile investments carefully, and never invest more than you’re willing to lose. This phrase, which you’ve probably heard lots, doesn’t just refer to millionaires that can afford to lose $100,000 on a BTC crash. It refers to you and to us, regular people, who might invest $500 per month in stocks and $50 per month in BTC.

Investing in crypto, in our perspective, is not about going in big, somehow winning big, and getting the hell outta dodge.

Meaning: crypto probably shouldn’t take center stage in your investments.

For example, you could try investing in low cost ETFs (traded assets, including stocks) to build your wealth in the long term, and for a lil spice (if you want to speculate and potentially accelerate your accumulation of wealth) put some money into BTC.

If BTC skyrockets, you would see that increase reflected in your modest investment; but if BTC plummets, you would be moderately rather than severely affected.

But BE CAREFUL!! We don’t know your finances, so while this strategy may work for some people, you have to do your own research and make sure it will work for you.

Knowledge Is Power (For Realsies Though)

If the $GME fiasco taught most folks anything, it's that the financial system is so convoluted and dense that it's basically impossible to quickly understand what shorting is, how it works, or who the hell hedge fund managers are and why they love hedges ???? What????

But the fact is, you are best able to manage your finances and build wealth if you have a good grasp of the financial landscape and how it works. It can feel like Wall Street is deliberately opaque, like it’s not meant for “regular people” to find success (a fear supported by how big banks and investors reacted to $GME).

Without knowledge of how finances and wealth accumulation works, in the nitty gritty mechanism of our financial systems, you are not as able to advocate in your own best interest. When we talk about bitcoin, which we do very often, this is the notion we have in mind: knowledge is power, and we want to help empower you to build wealth in the ways best suited to your own circumstances.

We can’t tell you how to invest. But we can try to give you the information you need to find success and build wealth through strategic and considerate money management.

And that there is the vibe. Good talk, friends.


This blog is provided for informational purposes only and is not intended as personalized tax, investment, legal, business or other professional advice, nor is it meant to suggest that a particular investment or strategy is suitable for any particular investor. If you’re unsure about an investment, you may wish to obtain advice from a qualified professional. Nothing herein should be considered an offer, solicitation of an offer, or advice to buy or sell securities. It’s important to remember that past performance is no guarantee of future results. Buying and selling bitcoin is risky and you may suffer losses.

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