Should I invest in Bitcoin? That's a question we got a ton back in the end of 2017 when Bitcoin had rallied from $1,000 to $20,000 in a year There was a huge amount of FOMO everyone wanted to get involved
My answer now is exactly the same as when it was back then, which is that a lot of great long-term speculative investments went down a lot before they went up and so you can only really have a very small amount of your portfolio in them, because you might need to wear their big ups and downs along the way Amazon back in 2000/2001 is the perfect example where obviously a wonderful business now but it fell 95% so in order to enjoy the long-term success you had to weather a lot of pain Now as it happens after 2017 Bitcoin as well fell 85% from $20,000 back down to $3,000 and so position sizing is important whenever you invest in a speculative asset it needs to be a very small proportion of your portfolio, so you can actually enjoy the long-term success if you happen to be right
