They say you know there’s a bubble when the man on the street gives you a stock tip. It’s one of those moments when your friends ask, your relatives ask, even your mother asks “How can I double my money”.
It becomes such a repugnant question to answer that the easy way out, even for an investment professional, is to just follow the bandwagon. At these moments in time, the market appears to soar to the highest heights of irrational exuberance. There is no way out, especially if your job is to invest for a living.
So you can imagine my surprise when my five-year-old daughter asked, “Dad, what’s a Bitcoin?”
It just felt so wrong. How has such a little person managed to add this word “Bitcoin” into her vocabulary? What are they teaching her at Kindergarten?
It turned out her friend Vera had one. Her dad gave it to her and according to her it’s made of solid gold. Well, five-year-olds have active imaginations.
I tried to explain as best I could. My wife was no help. She was busy surfing the “interweb” for ideas because it was her turn to be Santa this year.
“It’s used to buy things”. I said realising soon afterwards that sounded stupid and obvious. “But you don’t need to keep it in the bank or have it saved under your name”.
She looked confused. She paused for a moment and asked, “Can I have one for Christmas?”
Oh dear. This was a dangerous conversation. There was no positive payoff for me. A single Bitcoin at the time of writing is worth $16,500.
My wife overheard the conversation, turned round and said “Awww….give her one Daddy. Don’t they have some at the bank?”
So I asked my daughter, “Have you been good this year?”
“Yes!” she replied.
I smiled back and said, “Then ask Santa!”
Article by James Eagle