I personally believe Bitcoin is mislabeled. It is neither an investment, nor a currency. Bitcoin is a digital asset that is worth whatever someone is willing to pay for it. In some sense, the same is true for gold, art, currency exchange, and even the P\E for stocks. The negatives for Bitcoin are it’s short history, volatility, digital vulnerabilities, high transaction expense, complexity and lack of physicality. Bitcoin’s positives are its traction, limited supply, and lack of government intervention. I have owned Bitcoin, but have none now as I needed the cash. I can see a case for maintaining a small position in Bitcoin, but the same could be said for gold.
Very speculative, there’s nothing backing it. It’s similar to the Dutch tulip bulb bubble of the 1600’s. At it’s height, one bulb was worth as much as the value of a mansion on the Amsterdam Grand Canal.
I consider it speculation. It is unstable and extremely volatile. On the other hand, you can’t deny the long-term growth since its creation in 2009. For that reason, I “invested” about 3% of my portfolio a few years ago in my Roth via a limited partnership (LP) managed by Fidelity (the only organization that I would trust at that time). Originally, my goal was to leave it to my beneficiaries and had disregarded that fund (as being part of my portfolio from a retirement asset viewpoint). When Fidelity’s spot bitcoin ETF (FBTC) became available, I swapped out of the LP (which was charging a 1% expense ratio) and purchased the equivalent amount of FBTC (at 0.25% ER). At first, the Fidelity website denied the trade due to the account categorization being “growth and income.” I fixed that by recategorizing it to “most aggressive,” made the purchase, and went back to “growth and income” again. I guess they want to make sure that you are aware that the purchase of such funds is speculative in nature since all kinds of warnings pop up when you change to “most aggressive.”
Since the original purchase, the growth of bitcoin has increased that percentage from the original 3% of my portfolio to almost 9%, making it difficult to ignore. It didn’t have quite that much gain in that I did buy an extra bitcoin during one of the downturns. More recently, I attributed that FBTC fund to be part of my equity allocation, maintaining my 70/30 ratio with that inclusion. While my plan is still to leave it to my beneficiaries (who know that I’ve got this speculative holding), I also told them that if bitcoin hits $500K, I’m cashing out and spending it.
Speculation ? I tried to buy IBIT for only 1% of my rollover IRA, but the fidelity trading bot refused the trade, saying my portfolio was not categorized as ‘Most aggressive’.
It’s speculation, but I bought $2k of bitcoin years ago and moved it to the new bitcoin ETFs because dealing with bitcoin is not easy. Even Coinbase’s interface is difficult. I think the original run up, which made people rich fast, won’t happen again. I haven’t even doubled my nonmoney yet.
I personally believe Bitcoin is mislabeled. It is neither an investment, nor a currency. Bitcoin is a digital asset that is worth whatever someone is willing to pay for it. In some sense, the same is true for gold, art, currency exchange, and even the P\E for stocks.
The negatives for Bitcoin are it’s short history, volatility, digital vulnerabilities, high transaction expense, complexity and lack of physicality. Bitcoin’s positives are its traction, limited supply, and lack of government intervention.
I have owned Bitcoin, but have none now as I needed the cash. I can see a case for maintaining a small position in Bitcoin, but the same could be said for gold.
Very speculative, there’s nothing backing it. It’s similar to the Dutch tulip bulb bubble of the 1600’s. At it’s height, one bulb was worth as much as the value of a mansion on the Amsterdam Grand Canal.
I consider it speculation. It is unstable and extremely volatile. On the other hand, you can’t deny the long-term growth since its creation in 2009. For that reason, I “invested” about 3% of my portfolio a few years ago in my Roth via a limited partnership (LP) managed by Fidelity (the only organization that I would trust at that time). Originally, my goal was to leave it to my beneficiaries and had disregarded that fund (as being part of my portfolio from a retirement asset viewpoint). When Fidelity’s spot bitcoin ETF (FBTC) became available, I swapped out of the LP (which was charging a 1% expense ratio) and purchased the equivalent amount of FBTC (at 0.25% ER). At first, the Fidelity website denied the trade due to the account categorization being “growth and income.” I fixed that by recategorizing it to “most aggressive,” made the purchase, and went back to “growth and income” again. I guess they want to make sure that you are aware that the purchase of such funds is speculative in nature since all kinds of warnings pop up when you change to “most aggressive.”
Since the original purchase, the growth of bitcoin has increased that percentage from the original 3% of my portfolio to almost 9%, making it difficult to ignore. It didn’t have quite that much gain in that I did buy an extra bitcoin during one of the downturns. More recently, I attributed that FBTC fund to be part of my equity allocation, maintaining my 70/30 ratio with that inclusion. While my plan is still to leave it to my beneficiaries (who know that I’ve got this speculative holding), I also told them that if bitcoin hits $500K, I’m cashing out and spending it.
Speculation ? I tried to buy IBIT for only 1% of my rollover IRA, but the
fidelity trading bot refused the trade, saying my portfolio was not categorized as ‘Most aggressive’.
It’s speculation, but I bought $2k of bitcoin years ago and moved it to the new bitcoin ETFs because dealing with bitcoin is not easy. Even Coinbase’s interface is difficult. I think the original run up, which made people rich fast, won’t happen again. I haven’t even doubled my nonmoney yet.