The Bitcoin Hobbyist: Bitcoin Vs. Motley Fool Who Wins 1st Year Review (Sept 2021 to Sept 2022)

Published in

InsiderFinance Wire

5 min readSep 15, 2022

Sources: www.fool.com & https://en.wikipedia.org/wiki/Cryptocurrency?wprov-sftit

Background

This is the 1st year anniversary update. To read the previous updates, please click here. The goal is to run this experiment for at least 5 years.

Performance to Date:

Bitcoin: $428.93 (-43.89% Return)

NO RELIEF IN SIGHT. 🥲

The demand destruction continues! Thank you, Almighty Fed! Interest rate hikes are the tool the Almighty Fed is using to reel in the inflation rate. Recently Bitcoin peaked to about $22k and then puked up all the gains after the new CPI print was released by the Bureau of Labor Statistics (BLS) yesterday (09/13/22) The big boys on Wall St. thought inflation peaked over the summer, but the mysterious beast known as INFLATION said NOT SO FAST BUDDY!!. The year-over-year print was 0.1% HIGHER while Wall St. was expecting a print of -0.1%. Still, the inflation rate overall is over 8%. I also read somewhere that almost $6 trillion dollars of wealth have been destroyed since the beginning of July. Bitcoin is bouncing around between $23k and $18k during this time. While I get to take advantage of buying cheap sats, it is a kick in the gut to see your savings correlated to fiat melt away.

MUAH PURCHASING POWER!! :-(

Stock Advisor : $613.12 (-11.70% Return)

It appears Stock Advisor is getting the best of Bitcoin! Dear I SAY! The last time I updated this experiment was when the stock market hit lows in June. But once investors thought inflation had peaked, dollars started to flow right back into the markets. If you compare to the last update, many of the cost basis for my positions went down while the market value went up. This is the classic case of why most risk adverse investors choose to dollar cost average into positions. This is also considering the slide stocks took yesterday due to the disappointing inflation print.

Conclusion:

Our money overlords (Almighty Fed) are trying to destroy wealth to stop inflation. Everything is down. Gold, stocks, bonds, real estate, Bitcoin, people do not have a place where they can hide.

One year in, if you were a regular person trying to save some money over this last year, Stock Advisor would have won. But all things considered, you are still down almost 20% of your purchasing power due to inflation and the losses experienced in the stock market, but that is much better than being down almost 52% if you put all of your investment money into Bitcoin.

Please keep in mind the world is going through tremendous turmoil. The mishandling of the pandemic by world governments, the current energy crisis due to the Ukraine war ( which is still going on) and this rush to “green” energy, the tension between China and Taiwan, and lastly, this out-of-control inflation.

I feel for investors at this time because honestly what is a person to do?! It is like everything is designed to lose your money! The Almighty Fed has a mandate, and they are trying their hardest to stop inflation without destroying the world economy. I believe they call it a “soft landing”.

After one year of this experiment, Motley Fool’s Stock Advisor is the winner with only losing 11% of your money! In pure return, BUT if you keep in mind the cost to access Stock Advisor, then it is more of a tie. Stock Advisor is not a cheap product, and if I renewed my subscription, then Bitcoin would be the clear winner here

Keep in mind this is a long-term experiment, and I think in the long run, Bitcoin is the winner! So keep STACKING SATS AT THESE BASEMENT PRICES! Remember the hypotheses why buy access to investment tips offered by Motley Fool when you can just buy Bitcoin and chillax. Year one does not look too great, but we still have four more years to go!

Now let's check in with those ultra “safe” index investors. Let’s see how they faired;

S&P:
9/13/2021-> 4,468.73
9/14/2022-> 3,946.01

RETURN OF: -11.69%

DOW JONES:
9/13/2021-> 34,869.63
9/14/2022-> 31,135.09

RETURN OF: -10.17%

NASDAQ
9/13/2021->15,105.58
9/14/2022-> 11,719.68

RETURN OF: -22.41%

No safety in the broad markets as well. While everything is doing better than Bitcoin, passive investing may be the best option versus Stock Advisor and Bitcoin because you don’t have any start up fees (but you may have management fees depending on which brokerage you use), and you would have protected your purchasing power much better.

I am still not a major fan of passive investing. Blindly throwing money into a pool of companies that you may not care about or align yourself with is ridiculous, but that’s my opinion. Hopefully, next year's results will be much better, and I can salivate over my next vacation thanks to my prudent saving methods and having TIME IN INVESTMENTS.

Thank you for reading this article. Since this is my one year anniversary of doing this experiment and blogging about it, please have 2000 sats on me! Use your lightning wallet to scan the code below and earn your sats!