ORLANDO, Fla. – When it comes to cryptocurrency, whether you choose to jump in head first or avoid it completely, wouldn’t it help to at least do some research beforehand?
This week on “Black Men Sundays,” host Corie Murray shares part one of his interview with Dr. Tonya M. Evans, a professor at Penn State Dickinson Law with a new book coming out soon — “Digital Money Demystified” — that she says will separate fact from fiction when it comes to the “wild world” of cryptocurrency.
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“It’s a great opportunity because the prices are low. I remember a time when I first started Advantage Evans Academy, my first students came in when the Bitcoin price, for example, was just under $10,000, and then it pumped. I think a lot of people came onto the scene when Bitcoin in particular (rose), and it’s kind of like a rising tide lifts all boats because there are a whole lot of alternative coins — or alt coins, and we have another term for it as well — but there are over 30,000 different crypto coins and tokens. You can’t possibly nor should you invest in all of them, but you should be mindful about the ones that carry the industry. Bitcoin, ETH (Ethereum), those are some of those,” Evans said.
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Evans explained that failures of cryptocurrencies in recent memory had far more to do with macroeconomics than with internal changes such as, for example, how Bitcoin pumped from that $10,000 price point to over $65,000.
“There was a little thing called the pandemic, there were other things, wars and rumors of wars and all sorts of other things going on, so there are a lot of macroeconomic pressures on all assets and crypto was not impervious to that,” Evans said.
She said that while many other successful investors got their first big break in real estate, for her, crypto came first.
“My first entry point into true wealth — where I paid off all of my debts, all of my parents’ debts, bought things, properties that I own outright — that came from crypto and a lot of that had to do with preparation,” Evans said. “...In challenging market cycles is the time to prepare, not to quit, pick up your ball and go home, but to really strategize, reimagine what your portfolio looks like; if your credit’s not right, getting your credit in a position that you’re using other people’s money to actually access the real estate market. Don’t always think that ‘I have to have all of the money,’ most people do not have all of the money when they go into the real estate market, but leveraging debt, cleaning up your credit, the things that will put you in excellent positions to acquire that first thing. Usually (...) when you have high interest rates and the high cost of property, it may be the time to lean into education.”
Keep in mind, however, that this will get you playing what Evans called a long game across asset classes. Best to keep things more liquid to start out, she says.
“If you’re going to start saving a little more money, being a little more liquid so that you can move for opportunities more quickly when they present themselves and being in a position so that you stay ready so you don’t have to get ready when the next opportunity presents itself,” Evans said. “I think also of duplexes as a great way to start. You may think just more creatively about what are the opportunities (are), it may be Airbnb. I’m not in Airbnb, but I’ve seen some other people win in that space. Get clear about what your long term vision is and make sure your family is on board, and again, get your assets and your dollars and your crypto in row so that you can take advantage of opportunities when the market ripens.”
Hear part one of the interview in Season 3, Episode 3 of “Black Men Sundays.”
Black Men Sundays talks about building generational wealth. Check out every episode in the media player below.