Bitcoin’s Doing It’s Thing Again

Back to new all-time highs

Bitcoin. Who would have thought that almost precisely three years after it last hit an all-time high that it would be breaking out again? Probably some people honestly.

But how many people thought it would be breaking out now back in mid-March of this year? My guess would be a lot less.

Bitcoin is just doing what it always does - making believers happy, making non-believers mad, and confusing the heck out of the rest of us. In the current cycle, the group of believers just happens to be bigger. It also appears to include a lot more rich people who want in on the action.

It’s not outlandish to think that Bitcoin is higher today than it would have been if there had been no pandemic. COVID-19 has changed the way people think. It’s changed how people think the world works, how it might actually work, what could go wrong, and what life could look like when unexpected things happen.

Bitcoin is the essence of unpredictability. It only makes sense that in a world where the realm of probability seems flatter that more people would be willing to hedge their bets into farther, previously remote corners of possible outcomes.

As for myself, I plan to keep Bitcoin a part of my portfolio for the new year given the diversification benefits. Since it’s at an all-time high, I will probably allocate toward the lower range of my regular buys.

As for you, if you are feeling that fear of missing out, remember that the recent rally is the past. You can’t make money on the past. Ask yourself where you should put your money today to make a return on the future. If you are one of the true believers, maybe part of that bet is on Bitcoin.