So, I’ve been watching Bitcoin and cryptocurrency news like many have over the last year or two. I’ve been encouraged to invest in it ... when it was in the $1,000-1500 price range. I dismissed the advice and thought it was a fad. I watched it gyrate between 1500 to 20,000 to 50,0000 and back to 35,000 and below.
Each time... I referred to the volatility as a reason to justify avoiding it as an investment.
But in the last 6-8 months, I’ve watched companies like Microstrategy and Tesla and Insurance companies decide to invest ALOT of capital (Billions!) in this digital currency that is currently unregulated. That lack of regulation is what draws investment by the uneducated but it’s also what worries me the most. Elon and Michael et al are saying that parking cash in Bitcoin is smarter than and more appreciative than watching their cash lose value in the bank due to inflation.
That said, it did not stop me from investing a whole $50.00 into Bitcoin. Not Bitcoin Cash but Bitcoin. More on that distinction later.
My chosen platform for this experiment? The PayPal app - where you can buy as little as $1.00 of Bitcoin. It’s likely not as efficient as a platform like eToro or Coinbase. My first $50.00 purchase of Bitcoin was at the beginning of the year. I have DCA into it and as of today- it’s at an all time high. I fully expect it will drop 50% or more in the next 6 months. I’ll provide exact details of my total investment in the near future.
Purpose of this thread? A cryptocurrency experiment. Can I / We use the volatility of Bitcoin and “market timing” and crypto to make money? Of course, the risk is that while I’m experimenting...it becomes a legitimate gold alternative— a better place to park cash as Elon and Michael Saylor are saying. If adoption continues to rise (and it IS)... I may regret not accelerating the investment. The opposite can happen too. It could crash as it has done previously... but can I or We trade in and out and make money? Can you?
Would appreciate replies that include stories or links promoting or detracting from the crypto conversation. I think it’s a worthy subject or topic for the investing community to monitor and evaluate. In full disclosure, I’m highly skeptical of crypto and generally conservative.
YTD... my return is +15% in Bitcoin. I’ll share specific details on total investment in a future post. At the moment, 1 Bitcoin is worth $55,500.00 Thoughts?