As long-time subscribers know, I suggested putting a small amount of money into Bitcoins back when a Bitcoin was worth less than $100 each.
I do think it is a good idea to put like 0.5% (that is 1/2 of 1%) of your portfolio into bitcoins, because if they end up becoming a de facto currency in the digital economy, you’ll make 100x your money on them. If not, you lose 0.5% of your portfolio on them.
I am actively analyzing and learning and figuring out bitcoin’s place in our Brave New World Order, but as I’ve written before: ” Most serious investors and traders (including my colleagues in the WallStreetAllStars.com) are writing bitcoin off as a bubble or a scam. I’m leery that this first attempt at a global private currency is not well-enough protected and centralized. But to write off the whole idea is to miss an incredibly important economic development of our time.”
Cody back live in June 2017 now. Over the last week, I’ve had an Uber driver and a recently retired policeman tell me that they’ve been making huge money trading cryptocurrencies. Bitcoin is mentioned in the discussion, but it seems there’s a huge spike in interest and even in trading just about any cryptocurrency.
I also accepted Bitcoins as payments from Trading With Cody subscribers over the years. So I have a few Bitcoins but not a terribly meaningful amount compared to my overall portfolio. Regardless, I’m selling most of those Bitcoins that are up several thousand percent or so overall. I’ll still still hold a tiny amount of Bitcoins, but I think I’ll ring the bell on most of them for now.
A couple weeks ago, I’d mentioned that I thought Bitcoin $BTC looked like it was “bubbly” and was a sell — not a buy, not a hold. I still think that.
Q: Cody, I am a new subscriber and I can’t wait to hear your new picks. I do have question for today. Bitcoin; buy, sell, or hold at these levels?
A. Thank you for subscribing, Steve! As long-time subscribers of Trading With Cody know, I’ve been generally Bitcoin bullish for five years or more by now. In fact, I have been accepting Bitcoin payments for Trading With Cody for a while. At one point, it cost 1 Bitcoin per month for the $99 per month payment for Trading With Cody. Bitcoin as we speak is at $2,703, which would buy you more than two years worth of Trading With Cody now. I still own a few Bitcoinsthat I had accepted as payments. I didn’t go out and buy Bitcoins with my own money, but didn’t convert them into real dollars either. So I do own Bitcoins and probably should sell some.
So there you go — Buy, sell, or hold Bitcoin right now? Sell Bitcoin right now. Ten years from now, Bitcoin will still be valuable. Whether it is at these levels or $20,000 or $500, I am less certain. As I have said for 5 years, Bitcoin became the de facto standard for cryptocurrency and it will take something really disruptive, a new type of disruptive cryptocurrency, not based on block chain or something, to ever disrupt Bitcoin from that cryptocurrency ruler status. With that being said, look at a 2 year or even 2 month chart on Bitcoin and it feels as Mark Cuban said yesterday, bubbly. I wouldn’t buy bitcoin at this particular moment, I would rather sell it, though I probably am not going to sell any of mine.