How Much of Your Net Worth Should You Invest In Bitcoin?
Can you feel it? In the last week, the entire mood of the Bitcoin market completely changed. The price soared from $19k up to $28k in only a week. But what’s so bullish about this is that the reason the price of Bitcoin is going up is the exact reason why it was created. The world is crumbling around it, inflation rates have exploded, governments have printed unprecedented amounts of money, and banks are beginning to collapse. Bank runs took place, and people began to learn that they don’t truly own the money that they deposit into the bank. You are actually loaning it to them with the hope that they will return it to you upon request.
While Bitcoin began 2023 at the lowest of lows in terms of mood and expectations for the year. All of that has changed. We have once again entered the FOMO portion of the market when people are predicting just how high they think prices could go. How this will cause the largest transfer of wealth the world has seen in recent memory. There have been predictions of Bitcoin reaching its previous all-time high, surpassing $100k, and $200k, and some people have been even wild enough to predict a price of $1 million per Bitcoin. The truth is that no one knows where prices will actually go. They could continue to go up, or Bitcoin could do the exact opposite of what everyone is expecting.
During these times of FOMO and greed, one of the most common questions I see people asking is, “How much of my net worth should I put into Bitcoin or crypto?”