Before Bitcoin Bravado
Should I invest in Bitcoin?
I get the questions from my readers, and I get them from my students.
This semester, two very good and earnest undergrads asked me to advise a new student group on Bitcoin investing they were assembling,
“We’ve noticed that when we mention Bitcoin, it often carries a negative stigma among economics professors, but you are the first to truly show interest, which we really appreciate.”
That was mid-September before its value took off like a Musk Starship, leaping about 60%.
Should You Invest in Bitcoin?
I know that tomorrow’s or next week’s BTC value can not be forecasted without massive uncertainty. Personally, I would hold Bitcoin in a diversified portfolio and have opened a brokerage account to do that because my investment company requires a distinct “Crypto account.”
Like any investment, crypto assets fit within a wealth diversification view of a household's economic net worth. My current allocation is $0 because I want to learn more about whether Bitcoin can hedge against inflation or that it might help manage the risk of other macroeconomic events.
While I offer zero insight into the forces that affect the Bitcoin market, I wanted to share the first article on the topic that makes perfect sense to me. It is not a long read. See if it makes sense to you.