Let me start by saying that I am not a bitcoin enthusiast, advocate or even a follower. At this time I am an observer, at best.
I don’t know if bitcoin – or any other cryptocurrency – will still exist in the next ten years.
I do, however, keep my eye on the price of bitcoin at least a few times a week.
What intrigues me about bitcoin is that it is absolutely hated right now, and no one is talking about it. History has taught me that you have to pay attention when an asset class goes from boom to bust the way cryptocurrencies have. Sometimes the asset class makes a resurgence, like internet stocks, and sometimes it doesn’t, like telecom stocks, during the tech and telecom boom and bust.
I have no idea which way bitcoin will go. But the fact that it has been left for dead makes it a very intriguing investment. I do not think there will be a middle ground regarding bitcoin’s success or demise – it will either be a huge success or fade into oblivion, perhaps being replaced by something else.
Although the downside to bitcoin is zero, its upside in my opinion is unlimited. For that reason alone I would have no problem putting no more than 1% of net worth in bitcoin.
My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.
Click here to be taken to its Amazon page.
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So true. When it took it’s first dump down to $200 in early 2015, people were making fun of it, and that was everyone’s 2nd chance to get rich.
I don’t have any crypto, having focused instead on a variety of possibly-junk pot stocks, but your approach wouldn’t be unwise, at 1%.