Bitcoin $100,000: Buy or Sell?

Today marks a momentous occasion in the history of Bitcoin and cryptocurrencies as the mother of all cryptos surpasses the $100,000 mark. This milestone is a testament to the growing adoption and acceptance of cryptocurrencies as a legitimate asset class.

I’m not a big fan of cryptocurrencies and tokens which have been wrapped in greed, fraud and speculative fervour since their early days. Bitcoin and Ether have been my primary holdings of crypto. I was a relatively late adopter purchasing by first bitcoin mid 2017 at around 3,500 a piece and watching its price go up over 5x to just under $20,000 within six months before crashing the following year by 85% and trading back below my purchase price.

I wrote a LinkedIn article back in December 2017 warning about speculating and suggesting the best way to invest and own Bitcoin; “If you want to own bitcoin, have a conviction or thesis on why you believe its fair value...”

Seven years later, Bitcoin is still Bitcoin but of course worth multiples of 2017 price. Bitcoin has no intrinsic value and is not backed by any entity unlike a government currency. The value of Bitcoin is in its design as a decentralization. Not requiring a middleman (or women), free from the control of governments and financial institutions is its value proposition.

The recent surge in the price of Bitcoin is due to several factors, including:

• Increased institutional adoption and increasingly accessible to individual investors via ETFs
• Growing mainstream awareness and adoption by merchants as a form of payment
• President elect Donald Trump planning to make the U.S. government crypto friendly

My portfolio has a cryptocurrency allocation ranging from ten to fifteen percentage points. Which is relatively high as I actively manage my portfolio. Being a qualified investment manager with over 27 years of investment experience also helps!?

As for my view on Bitcoin, I will not be buying more at this time. This doesn’t mean I don’t think prices are going higher over the next year as price momentum and sentiment is very strong at this time.

I’m looking at even reducing Bitcoin and reallocating to higher torque crypto related publicly traded venture companies or altcoins which will see significantly higher price movement on the back of the current cryptocurrency bull market.

Being careful not buy to buy an company or token that has already gone vertical which will stall and pull back sooner or later. Just like the fighter jets at the airshow, the go soaring into the sky to eventually pull back and stabilise.?

The secret to success in cryptocurrency investing is having no fear, and no fear of missing out. I like to take a portion of my equity portfolio profits every year to invest in alternative assets such as venture capital, crypto or collectables. I know the potential is there to make multiples of return on your investment or just as quickly lose most of it.

Bitcoin is the easiest and most effective way to get exposure to the cryptocurrency market. No one knows where Bitcoin prices will be in a year from now. Bitcoin will not go to zero, anytime soon. It is the digital gold of cryptocurrencies. But can it fall 50% next year? Sure. Can it go up another 100% next year. Sure.

Don’t get caught up in the crypto hype calling for Bitcoin to a $1,000,000 in a few years! It could do a 10x return over the next decade. But I also have a whole list of public venture companies that have a higher probability of doing a 10x return without being at the mercy of the crypto sentiment or regulation.

When investing always compare the risk and return profile of investment A vs investment B, its not necessarily the one with the highest return potential but the investment with the highest probability of a certain return relative to the other. I’ll perhaps do another article on my approach to portfolio construction.

If you found the article helpful, I would appreciate a like or share.

Welcome your comments, feedback and any hot altcoin or crypto venture picks!

Ps Congrats, and thank you Satoshi!?

#bitcoin #crypto #investing #venturecapital

Disclaimer:

The information provided in this article is for general informational purposes only and does not constitute investment, financial, or legal advice. It should not be considered a substitute for professional advice from a qualified financial advisor, investment manager, or legal professional.

Any opinions or views expressed in this article are solely those of the author and do not necessarily reflect the views of any other entity or organization.

Investing in cryptocurrencies, including Bitcoin, involves significant risks, including the risk of loss of principal. The value of cryptocurrencies can fluctuate significantly and is subject to market volatility. Past performance is not indicative of future results.

Before making any investment decisions, you should carefully consider your investment objectives, risk tolerance, and financial situation. You should also conduct thorough research and consult with a qualified financial advisor.

The author and publisher of this article are not responsible for any losses or damages incurred as a result of using the information provided in this article.