Today is Children's Day, and I took my child out to play.
From buying Children's Day gifts for my child in the morning to taking them out to play in the afternoon, the various expenses add up to about 200 USDT.
Juzi joked with his wife, saying it would be better to directly convert that money into Bitcoin for them.
At today's price, 200 USDT can buy about 0.002 BTC.
If you continue to invest in this manner, assuming the BTC price remains unchanged, you could accumulate about 1 BTC in roughly 500 transactions.
So I asked my baby if she would be willing to take the money for gifts and outings now to buy Bitcoin, and then reap a handsome return in the future?
Dabao is a money lover and immediately agreed, saying he was willing.
But he was a bit unclear about it and asked what Bitcoin was.
I said Bitcoin is a rather special currency.
Later, the old man interjected, saying that when comparing long-term gains to present happiness, children still prefer immediate happiness.
The old man is wise; after all, children tend to focus more on the present.
However, saving some Bitcoin for children has officially been put on the agenda in our family.
I once did a calculation; if the children's New Year's money had been directly bought as Bitcoin a few years ago, the returns by now should be very substantial.
But at that time, my mindset was very conservative; I bought some small yellow fish and made some fixed deposits for them, and then set up a 'dad bank' at home, giving them interest weekly to let them spend freely.
Parents love their children and plan deeply for them.
With cryptocurrencies already gaining global mainstream recognition and acceptance, do you still feel it's far from us?
Juzi believes that although we haven't included Bitcoin as a strategic reserve like the U.S. and are required to hold at least 5% of Bitcoin.
However, saving some Bitcoin for children to combat future inflation and risks should become a very important strategy for every family at present.
This is a good way to add some certainty for your child in a world full of great uncertainties.
And it's actually quite simple to operate; Juzi will briefly share the idea as a starting point.
1. If your child is quite young, then there's no need to discuss it; just directly convert the child's New Year's money and red envelope money into Bitcoin. This is the insurance mindset that Juzi mentioned earlier.
You are treating it as insurance, expecting future interest distributions and appreciation potential, rather than short-term returns, so you are likely to make money.
2. If your child is of a certain age, you can talk to him about this knowledge. He may not participate in this industry, but it is necessary to understand the relevant knowledge.
We cannot protect children too well; sooner or later, they will face societal risks, so it’s better to let them know earlier that the world isn't so easy to fool. Children are just young, not foolish.
Losing a little money to quickly gain knowledge that peers do not possess helps them socialize earlier, and they will thank you later.
3. If your child is already quite grown up, you can discuss it with him, seek his consent, or you can also invest part of it to help him develop a sense of responsibility earlier, knowing he must be accountable for the results. He will become more responsible.
This part of the money you can afford to lose, or simply put, just hold it as an alternative asset investment; either way is fine.
Rather than waiting for the child to complete college before experiencing societal training, it's better to let him connect with the world while he's still young.
Whether it's Buffett or Peter Lynch, both became participants in the securities market at a very young age and witnessed the changes in the market over the years, which is why they have a profound understanding of the industry's development. These core secrets are something new entrants can never truly grasp.
4. Follow the 5% principle.
Juzi is not suggesting that your family should go all in on Bitcoin or digital currencies, rather he finds the 5% proposed by the U.S. quite interesting and that everyone can take it as a reference.
This means your investment in this area should not exceed 5% of your family's cash flow.
Note that Juzi is not referring to 5% of assets, but rather 5% of cash flow.
There’s no way around it; the household debt ratio in China is too high, and the proportion of real estate is too heavy. Many families seem to have millions in assets, but most of it is real estate with heavy debts, leaving cash flow very tight.
So don't deceive even yourself, telling yourself that your family's assets are 5 million, so you can take 500,000 to invest.
The actual situation is that a family with 5 million in assets has 70% in loans, with liabilities of 3.5 million, and the loan interest rate is high. If the loan is paid off in 30 years, the actual repayment amount exceeds 7 million.
You might only have 1 million in cash, taking out 500,000 to invest, which is half of your cash flow.
As a result, they ended up playing with altcoins and meme coins, and when the price dropped, they got stuck.
Again, it’s emphasized that it’s 5% of cash flow; with 1 million, just take 50,000, and don't expect to make money or think of yourself as a chosen one or a genius trader.
You are just a new entrant, how could you possibly make money?
Just buy some Bitcoin and play dead; no need to act like a big shot.
5. Don't buy when it doesn't drop. One last point to emphasize: don't buy when prices are rising.
Instead, you should overcome your inner fear and buy during declines, even significant declines.
I know this is counterintuitive and hard to do, but you have to do it this way.
Your principal was never much, your ability to bear risks is low, and then you buy at a high point, so you can only bet on one situation:
Bitcoin will not drop below your cost line.
Otherwise, you will lose money, and once you lose money, you will feel bad, especially without any investment experience. Then you might frantically try to recover your losses, and if you’re not careful, you could end up losing everything.
So let's simplify things: you just need to lower your costs a bit.
You will find that as long as your cost is low enough, you have no fear.
Why do project parties still dare to dump coins after the prices have halved?
Because his coins have no cost; it’s that simple.
Why do you still hesitate to sell when the coin you bought has halved?
Because your cost is there, if you sell, you lose. So you can only deceive yourself into thinking you haven't sold at a loss, and that it might come back later; it's just that simple.
There’s a saying that all fears stem from insufficient firepower.
In the crypto world, all fears stem from excessively high costs.
As long as your cost is low enough, no one can cut you.
I will keep it simple for today. Juzi believes this is indeed a very important matter for all families. If you are interested, just leave a message, and I will find time to discuss it again.
For children, match a suitable plan according to their different ages and personalities. After that, it's up to them; after all, parents can plan for their children's future, but they can only start it and not always clean up after them.
I am Juzi, the founder of the Web3 Oasis and an expert in recovering crypto assets.
