Recently there is an explosion in both Bitcoin price, and its adoption in the world & in Israel in particular.
A few have turned to me and asked what I think about the price, and whether they should invest.
A few disclaimers:
- I have recently joined Meni Rosenfeld as a partner in Bitcoil, the largest Israeli Bitcoin Exchange. So you could call me biased.
- Of course I hold some bitcoins, so I’m even more biased
- I am not an investment adviser … use your heads, do your homework, only invest what you can afford to lose
My answer would mostly be to:
- Refer them to the post I wrote about it two years ago, when it was 80 cents (It’s now $45).
- They have to make their own decisions.
- No, I won’t tell you how much I invested two years ago. And it does’t matter.
- What matters is how much I have riding on it now – personal past performance is irrelevant for investment decisions
- Personally I am invested in it, for the long term. I have a significant (>10%) of my total net worth in Bitcoins, and I won’t be selling most of them under $1000 a pop.
- That I personally believe we’ll reach $100 in 2013, and $1000+ in the next 3-5 years (but I don’t have a crystal ball).
- It’s a risky investment – it could all vanish instantly if “something bad happens” (e.g. government crackdown)
- Please don’t try to day-trade if that’s not your profession. If you want to buy, just buy and hold it long term.
- Mining is for hardware experts, not for everyone. If you’re not an expert, stay out, for your own good.
In the last two years that I’ve dealt with Bitcoin, I haven’t heard a single convincing argument why it would fail. I’ve seen countless positive examples of the kind of community that it creates, and I am convinced it will grow and dominate. IMHO, every person on earth should hold some percentage of his investment portfolio in Bitcoin … it can be 0.1%, 1%, 10% … whatever you’re comfortable with.
There will only be 21,000,000 Bitcoins in the world … ever. Grab yours while they’re cheap and only cost $45 a pop.
And please, remember - I am not an investment adviser. Do your own homework.
For those who shout Ponzi, please read the FAQ before posting.