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Writer's pictureDavid Shirkey

December 8, 2021 - Different Ways to Invest in Bitcoin

Updated: Dec 9, 2021

Who knew there was over 10 different ways to invest in Bitcoin?


You can buy it, mine it yourself, dollar cost average it, wrap it in a publicly traded stock, mine it passively with the help of others, invest in a Bitcoin fund, etc.


This MIG meeting will be focused on discussing and learning about the Different Ways to Invest in Bitcoin.


This MIG meeting will not be focused on learning "why" to invest in Bitcoin, but will be more focused on "how".


This MIG meeting will assume you already want to own Bitcoin.



Some of the Different Ways to Invest in Bitcoin that we will discuss:

  • Chunky

  • Buy Bitcoin in chunks at whatever time.

  • DCA

  • Dollar cost average (DCA) into Bitcoin at a certain time interval.

  • Time the Market

  • Attempt to “time the market” with Bitcoin buys when you feel the price is low.

  • Private Trust

  • Invest in a Private Bitcoin Trust that is intended for Accredited Investors.

  • ETF

  • Buy into a publicly traded Exchange Traded Fund (ETF)

  • Balance Sheet - Public Stock

  • . Invest in a publicly traded stock company that has a significant amount of Bitcoin on the company’s balance sheet.

  • Mining – Public Stock

  • Invest in a publicly traded stock company that mines Bitcoin.

  • Mining – Private Fund

  • Invest in a Private Investment Fund which specifically owns Bitcoin miners (most likely this is for Accredited Investors).

  • Mining – Own your own Miner(s), and have it Hosted by a Third Party Mining Operation.

  • Mining – Directly own and operate your Miner(s) in your own facility (or home or garage).

  • Rent Hash Power to a Hash Rate Marketplace

  • Buy Hash Power


Some of the factors from the above list that we will discuss:


  • What are example of each?

  • Which are Active?

  • Which are Passive?

  • Pros / Con’s of each?

  • Which are Riskier than buying Bitcoin directly?

  • Which have more “upside” than buying Bitcoin directly?

  • Which are “leverageable” with debt?

  • Which can you earn some cash flow on (lend on)?

  • Which are depreciable?

  • Which are only open to accredited investors?

  • Which are paid out in Bitcoin vs paid out in fiat cash?

  • What about the tax treatment of the various options?

  • What about the custody of each option?


VIDEO



Public Service Announcement:


Please remember MIG is for educational purposes only. We are sharing information so we all can learn and then make our own decisions. Nothing at MIG should be considered as financial advice, or accounting advice, or tax advice. Thanks!




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