So many of our readers and clients have commented on the bitcoin value in the end of 2020 and what is our opinion on bitcoin going forward into 2021?.
This one is really hard for us to answer when it comes to should you invest in bitcoins or not.
We always say when it comes to crypto currencies or investing in high tech high risk companies that they should not make up more than 10-15% of your total investment portfolio.
So here in lies the answer for you, if you feel that you want to invest in bitcoin then use 10-15% of your portfolio but not more than that to make sure that if it comes crashing down you do not lose to much of your portfolio.
So we have personally missed the bitcoin train many times starting way back in 2014.
Hindsight is always 20/20 in these cases but it is a highly volatile investment.
For the once that was lucky enough to take the chance on the bitcoin back in 2014 and have held on to it are today multi millionaires, no doubt about that.
We also know a lot of young people who put everything they owned into bitcoin and other crypto currencies and they are richer than they ever dreamed of in their wildest dreams.
So our hat off to them.
But there are also people we know that bought the bitcoin and then it dropped 50% and they got nervous and sold it at a 50% loss.
We have told our clients who bought at the last top, and when it started to go down to stay calm and wait for the turn.
And from October 2020 that turn has now arrived with a value at over 30.000 dollars per bitcoin.
So many have now the opportunity to sell and make 50% in profit on their initial investment, evern if they where down 50% at one time not to long ago.
This here above that we have mentioned is the reason a seasoned investor would never put more than maximum 15% of their Net Worth into the bitcoin or any other crypto currencies for that matter.
There are rumors that the bitcoin might go up to over 150.000 dollars so 5x in the next 2 years time compared to todays value in January 2021.
The value of bitcoin in 2021.
But we would not be surprised if it would fall back down to 15.000 dollars again by the end of 2021.
So this type of investments are very risky compared to Warren Buffet type of long-terms investing in blue chip stocks.
SO BE VERY CAREFUL WITH THESE TYPE OF INVESTMENTS.
https://www.coindesk.com/price/bitcoin
Take care.
Mrlifeadvise.
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