Double Down on Bitcoin?

I know some readers hate it when I write about Bitcoin, so I try to only comment on its dynamic returns a time or two a year at most. Still, when it hits another all time high – fueled by the most dynamic entrepreneur of our age, Elon Musk – it’s worth another mention.

Musk’s Tesla board agreed to invest $1.5B into Bitcoin yesterday, driving the cryptocurrency up to as high as $47K. That’s more than double what it was just last November when I wrote back-to-back articles on Tesla and Bitcoin.

The company announced it will begin accepting Bitcoin as payment in the future, so perhaps my small hobby investment in the crypto will someday pay off into something real. I bought at $4K a coin, meaning my original buy & hold investment has gone up almost 12x.

No, I am not doubling-down on cryptos or moving a significant chunk of my portfolio into Bitcoin. Maybe I should, but it is still highly speculative and in my situation it is more important to protect wealth than attempt to grow it in risky ways.

Despite it’s incredible run, my prediction for the future is that Bitcoin is still more likely to drop to zero than grow to $400K. At the same time, it is amazing that $400K could be a possibility!

Image Credits: Pixabay

6 thoughts on “Double Down on Bitcoin?

  1. I’m already regretting not speculating a little bit (just for fun) a few years back. But I’ll probably continue to refrain as we are also in “wealth protection” mode at this point in life. My past speculative investments have always been in real estate, so I’ll stick to what I know best. They got us here and seem to still be working just fine. Although Bitcoin has been very tempting at every turn! Good luck with your Bitcoin holdings. I’ll just have to live vicariously through your holdings!

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    1. That’s how I approached it … “just for fun”. My wife said I should sell our Bitcoin since it is so high, but selling or holding won’t change our lifestyle. More fun to see if it goes somewhere!

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      1. I finally made the decision that I want to allocate 1% of my net worth into Bitcoin/crypto. But with the constraint that I’m waiting for the price to drop to $20,000. Then this happened. I think Bitcoin as a store of value is real, but trying to time the market seems like a real pain right now. It very well may never go below this point if more accredited investor start coming to this same conclusion.

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      2. I thought about buying more, but agree the price seems to high now. Of course, if it’s not too high for Tesla/Musk, why should it be for me?

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  2. I dont own any bitcoin but it certainly has become tempting. I think it will hit 150k then 250k in the next few years. Wall street and investors go crazy over things like this. Just look at the big rally we had in stocks since the March lows. Almost doesnt make practical sense but it happened.

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    1. Bitcoin ticked up to almost $50K today. Amazing to see what a run it is on. If it gets as high as you think, I’ll be using it to buy a new Tesla at that point!

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