Episode•November 14, 2024•13 min

How to Invest in Bitcoin Without Day Trading with Lark Davis | Ep. 354

Tiffany Grant welcomes Lark Davis, a seasoned cryptocurrency expert, to discuss the fascinating world of bitcoin and investment strategies in the crypto market. Lark shares his journey into crypto, starting in 2017, and emphasizes the importance of viewing bitcoin as a hedge against inflation and fiat currency devaluation. He introduces the concept of dollar-cost averaging as a simple and effective strategy for investing in bitcoin, highlighting its impressive long-term returns compared to traditional assets. With the recent availability of Bitcoin ETFs, Lark provides insights on how new investors can easily get involved without the need for constant trading. Join Tiffany and Lark as they explore the potential of bitcoin and how to navigate this exciting asset class. Check out the full show notes: https://moneytalkwitht.com/investing/bitcoin-insights-from-lark-davis/ Takeaways Lark Davis emphasizes the importance of understanding the fundamentals before investing in cryptocurrencies like Bitcoin. Dollar cost averaging is a practical and effective strategy for investing in Bitcoin over time. The cryptocurrency market is a new asset class that has created many millionaires amid its volatility. Investing in Bitcoin can serve as a hedge against inflation and the debasement of fiat currencies. Learning about Bitcoin through podcasts and books is essential for informed investing decisions. Bitcoin offers unique advantages over gold, including verifiability and scarcity, making it an attractive asset. Links referenced in this episode coinbase.com (affiliate link) binance.com kraken.com Support this Podcast Copyright 2024 Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Bitcoin serves as a hedge against fiat currency debasement and inflation
Fiat currencies are being printed into oblivion with massive debt levels ($35 trillion US debt, adding $1 trillion every 3 months)
Bitcoin has a fixed supply cap of 21 million coins, making it mathematically programmed to increase in value due to scarcity
Bitcoin offers advantages over gold including verifiability, divisibility, and verifiable on-chain supply
2
Dollar-cost averaging (DCA) is an effective long-term Bitcoin investment strategy
Putting $50/week into Bitcoin since 2020 would yield ~200% returns despite buying at cycle tops ($69K and $74K)
DCA allows investors to benefit from Bitcoin's long-term appreciation without timing the market
This strategy outperforms during periods of fiat currency devaluation
3
Bitcoin ETFs provide an accessible entry point for traditional investors
Bitcoin ETFs are backed by actual Bitcoin, not paper derivatives
Investors can purchase through existing brokerage accounts without needing crypto exchanges
ETFs enable dollar-cost averaging through traditional investment platforms
4
Understanding Bitcoin fundamentals is essential before investing
Bitcoin is a fundamentally new asset class - the first since stocks 200 years ago
Volatility of 20-50% swings requires conviction based on understanding the investment thesis
Warren Buffett's principle applies: don't invest in what you don't understand

Intro

Tiffany Grant welcomes Lark Davis, a cryptocurrency expert since 2017, to discuss Bitcoin investment strategies that don't require day trading or constant market monitoring.
Lark Davis is a crypto OG who went full-time as a cryptocurrency content creator in November 2017. He started buying Bitcoin in 2017 after first hearing about it in 2012, and has since built a following sharing educational crypto content on X and YouTube.

Lark Davis on X Lark Davis on YouTube

– Lark's Journey into Crypto

Lark first encountered Bitcoin in 2012 as a teaching assistant but couldn't afford it due to his budget. He started buying in 2017 and went full-time as a crypto content creator by November of that year.

I just went all in. I didn't have very much money at the time, but I just said, you know what? This is the thing. I'm going to go all in and let's just see what happens.
– Lark Davis

– Bitcoin as an Investment Thesis

Lark explains Bitcoin isn't just speculative - it's an exit from fiat currency. With $35 trillion in US debt and ongoing currency debasement, Bitcoin's fixed 21 million supply cap becomes increasingly attractive.

When you realize that, that there's an infinite amount of fiat currency, suddenly an asset class that has a maximum of 21 million coins ever becomes a very interesting alternative.
– Lark Davis

– Dollar-Cost Averaging Strategy

Lark demonstrates that DCA into Bitcoin since 2020 would yield approximately 200% returns, even for those who bought at cycle tops. This strategy has outperformed the S&P 500 significantly.

If since, let's say 2020, you've been putting in 50 bucks a week into Bitcoin, right? You'd have some thousands of dollars invested. However, your total returns would be around 200% or something like that right now.
– Lark Davis

– How to Get Started with Bitcoin

Lark recommends starting with education through podcasts and books like 'The Bitcoin Standard.' Investors can then buy directly on exchanges like Coinbase, Binance, or Kraken, or use Bitcoin ETFs through traditional brokerages.

The Bitcoin Standard (book)
Michael Saylor podcasts
Daily Lark Davis content on X and YouTube

– Bitcoin ETFs as an Accessible Option

Bitcoin ETFs now allow investors to gain exposure through existing brokerage accounts. These ETFs are backed by actual Bitcoin, not paper derivatives, making them a user-friendly entry point.

It's not paper. It's actual Bitcoin backing up those Bitcoin ETFs.
– Lark Davis

Books Mentioned

The Bitcoin Standard by Saifedean Ammous

Resources

Topics

BitcoinCryptocurrencyDollar-Cost AveragingBitcoin ETFsInflation HedgeFiat CurrencyInvestment StrategyLong-term InvestingGold AlternativeFinancial Education