Which would you invest in? BTC is much more volatile than gold, so let's say the choice is between $1k in BTC and $10k in gold. Or maybe the gold investment is $1k in a gold miners ETF which leverages the price of gold. You get the idea.
Hey Ed, What is the time horizon of the investor ? If 71, then is it worth it, to gamble with something, that has no fundamentals & is mostly used for shady transactions and nothing else ? (BTC) (yes, it's being actively traded, but by those who know what they do, more or less) $10 k into gold ? Just to put it in & forget ? Then, if that $10k is no more than 5% / 10% of your total portfolio, avarage in, $500 per month ; thing is i an minor downtrend at the moment, but overall should go for those 2010 highs of $2000. All of this is just an opinion, by someone who has no emotional attachment for any of those two. Still, what i would do at your age, and no specific knowladge (sorry if you have the skills, but confusing then, why would you ask in the first place,), avarage in to SnP500/VOO, yet stay liquid, on cash, with 50% , next crash begins, 30% ~ 40% , go all in hard on equities. P.s I wouldn't use leverage, because i don't want to give away, the privilege of deciding, when to stop.
I've wondered... if/when BTC goes the way of tulip bulbs... will the BTC believers question, "how could I have been so foolish"?
i'd go with platinum or silver... check long term gold/silver ratio and platinum/gold premium... both indicating gold overvalued by a wide margin relative to the other 2 precious. btc... forget it.. a string of numbers out of thin air, with UNlimited supply... e.g. Libra, which got shut down immediately because it would have instant worldwide adoption... this proves my theory even before Libra that btc is not killed only because nobody is using it.
,, In July, David Marcus, the Facebook executive leading Libra, faced two daysof questioning in Congress about Libra. Facebookâs chief executive, Mark Zuckerberg, is scheduled to testify at a congressional hearing about Libra on Oct. 23." - N.Y Times What they were thinkining ? Like little kids, testing the boundaries, of when it will be too much, as if they couldn't see the consequances of such project, if it would come to day light. If they would pull out, something of such scale & so disruptive, in less friendly environment or a country, - that would be the last great idea from them.
In a way, they are testing the waters. Just like autonomous cars, when there is no regulation or the government doesn't clearly rule, everything is allowed. Until the big brother finally steps in, but you won't know it unless you try.
The real question is: When you believe that BTC will go the way of the tulpis, why are you on the sidelines instead of having a big ass short position on?