A couple of years ago, Bitcoin was the best place to put 1,000 dollars. I believed in BTC, invested some money, and happened to be right. Luck played a significant role in that. Bitcoin could have been regulated into oblivion, rejected by the masses, or crashed to zero because a few whales decided to sell. Fortunately, none of that happened.
Despite being lucky with BTC, I would have advised my younger self not to invest that 1,000 dollars in Bitcoin, but to invest it in yourself instead.
Investing in Bitcoin involved considerable risk—just like investing in stocks. Even government bonds are risky nowadays, especially with the looming threat of hyperinflation. Most traditional assets no longer offer a return on investment (ROI) that outpaces inflation.
Investing in yourself, however, is independent of legislation, regulation, or inflation; it depends solely on you.
If you put 1,000 dollars into the S&P 500, you might end up with 1,100 dollars next year (if it was a good year), but taxes and inflation could easily eat up that profit. On the other hand, spending 1,000 dollars on a camera and learning photography could pay dividends for decades. You gain a new skill with the potential to generate income. Best of all, you control the risk—your success with that investment depends on your own effort, not on unpredictable government decisions that no one could foresee unless they’re Nancy Pelosi’s husband.
That’s why I would encourage you: If you’ve got $1,000 invest it into learning a new skill.
- Buy a website hosting plan and start a blog
- Take a painting class
- Get a gym membership
- Pick up a guitar and learn to play
- Start learning a new language
- Grab a GoPro and try moto-vlogging
This is where 1,000 dollars is best spent as it can turn into a new business, income stream, or at least a new hobby that enriches your life.