Actually I sold higher and have been rebuying at these relatively low prices.
It isn’t a Ponzi insofar as no one entity controls the issuance of new bitcoin. Further, there is a fixed upper limit to supply.
Because of its low correlation with other asset classes and unique value drivers, it is a good investment in my view. But it is primarily a hedge, and like any hedge it should not be a major component of one’s portfolio. I.e., one should periodically rebalance the allocation to less than 5% (or 10% if one is very aggressive).
Also, although “bitcoin” is often used to refer to all cryptocurrencies, I believe that there are other cryptocurrencies with greater potential and use value than bitcoin, namely, Ethereum.
Seems wise.
I get that it's limited in supply, but being that it's an intangible (just like full-faith-and-credit), seems smart to keep it as one portion of a portfolio.
I just wonder who these folks are who are buying on the high end.