Should You Buy Bitcoin At $70,000?

Should You Buy Bitcoin At $70,000?

Ever since I recommended bitcoin back in early 2016 at about $400, people have asked me, “should I buy bitcoin today?”

They asked me that same question when bitcoin hit $600, $800, $1,500, $5,000, and $20,000.

OK… You get the idea.

It's been an age-old question asked of me…”OK, T, but is now the best time to buy bitcoin?”

I get it. $70,000 bitcoin looks expensive. But at one time, so did $500, $5,000 and $50,000. But if you bought bitcoin at any of those price levels and held on, you’d be up.

Friends, what I’ve learned about bitcoin is that if you want to make a lot of money from it you have to abandon that question (is now a good time to buy?) and make peace with the idea that – at some point in your bitcoin ownership journey – you’ll experience face-melting paper losses.

One of the smartest bitcoin investors I know got smoked on his first bitcoin purchases. He lost 50% within days of getting involved in bitcoin.

What was his entry price? It was $600. Over his initial holding period, he would watch bitcoin get as low as $175. That’s a 70% loss.

So even those who were “early” had to live through gut-wrenching volatility. But today at $70,000, do you think he cares about that volatility?

Heck no. And neither should you. As I’ve written recently, over the next 6 years bitcoin has at least 10x upside potential from current prices.

“Ok, T, but should I buy bitcoin today after it just hit a new high?”

This is another question I get a lot.

The answer is that it depends on your situation.

Let’s assume you own no bitcoin. Should you buy some now that it has breached an all-time new high?

Let me answer this way…

If you had paid the high for bitcoin each year of its existence, you’d still have a profit today. Few assets in the world can say that.

That’s the hallmark of a powerful wealth-building asset. Microsoft, Meta, Amazon and Google are among a handful of equities that can make that claim. So if you have a long term time horizon, just buy bitcoin and go about your life.

However, if you just can’t bring yourself to buy the high… Here’s another approach you can take.

First, figure out how much money you want to allocate to bitcoin. Take 50% of it and buy bitcoin at today’s price.

Then put in a buy order that’s 30% below your initial purchase price for another 25% position. Put the remaining 25% buy order in at 50% below your purchase price.

In a bull market like we’re in now, it’s doubtful you’ll see a 50% price drop. But 30% drops happen a lot.

Of course, the risk is bitcoin could just zoom higher and never hit your retracement levels. If that’s the case, you’ll still have a 50% position established – and that is far better than having no position.

Friends, on any given day bitcoin can do anything it wants. It can leap higher by 50% or crash by 50%.

Many say that makes bitcoin uninvestable. I say that volatility is a feature you can harness for your own benefit.

The key is to use rational position sizing and to understand and accept there will be periods when you will be down 50-85%.

But over time, I believe bitcoin will continue doing what it's always done… And that’s being among the best-performing risk assets in the world.

Let The Game Come To You!™

Big T