Bradley Valentin 
Bitcoin has been in the news lately for its quick 21% drop over the last 30 days or so. As of December 1, Bitcoin is trading around $86,000. In early October, Bitcoin hit a new record high of around $124,000, and many cashed out and made bank.
There was definitely FOMO (fear of missing out) for those who hadn’t bought in yet, so many likely moved much of their investment portfolio to Bitcoin when it hit new record highs a couple of months ago. Obviously, today, they are not feeling too happy with their investment. But if they don’t cash out at a loss, have they made a mistake? And should we be looking at Bitcoin and other cryptocurrencies as a legitimate option?
Bitcoin Vs. The Rest
Bitcoin has a unique track record among cryptocurrencies. Many meme coins (short-term scam coins) have come and gone, while a few have stayed for the long run, like Bitcoin. However, there are still a few legitimate options. Bitcoin is no doubt one of those, but what else is there? Some refer to Ethereum (ETH) as an alternative, and there is actually a pretty significant market cap for Ethereum of around $337 billion (meaning that there is around $337 billion of active investments into ETH).
Another alternative would be Litecoin (LTC), which is probably the third most popular coin. This is a coin that many will duplicate to mine and turn into their own scam coins. However, investing in LTC on its own is less of a risk than investing in a meme coin.
So in terms of risk of the three, we are looking at LTC as the riskiest, ETH second, and BTC as the least risky. Bitcoin stands as the least risky of the three, but that doesn’t necessarily mean it’s a strong investment. Outside of these three, I would probably NEVER recommend investing in cryptocurrency.
Is Investing a Mistake?
So what about those who invested in Bitcoin when it peaked at over $120k? Did they make a mistake? Well, if they cashed out within the last couple of weeks, then the answer is clearly yes. It’s always a mistake to make a major investment when a stock hits a major peak and hits the news. Think to yourself, if you’re just now hearing about a major investment blowing up, it’s probably too late.
BTC is up 350% over the last 5 years.
But what if they haven’t actually cashed out yet? Obviously, they’re down, but for how long? Generally, long-term investing is a smarter option for several reasons. It allows you to push aside your emotions and allows an investment to grow. But many in the past invested in Bitcoin when it hit a peak of around $70k in 2024. What do you think happened? The coin dropped over the next few weeks, and many got scared and pulled out. But imagine if they hadn’t. If they had waited until the price was up to $120k, the investment would have been a steal.
Of course, it’s impossible to know the future price of a stock or investment. That is why investing in the long term is usually recommended. So let’s get back to the question: Should you invest in Bitcoin?
The answer depends on your portfolio and where you are in your investing journey. If you still aren’t maximizing your 401(k) match contributions, then no, first do that. If you’ve done that, then make sure that you’re investing your full $7,000 into your Roth IRA. If you haven’t paid off bad debt, such as credit cards or car loans, do that before you worry about investing.
But if you have a lot of free cash and your debt is paid off, then it’s okay to invest in Bitcoin. Just remember, it’s still a relatively new investment type, and there is still risk. You shouldn’t be investing too much more than you think you can lose.
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