Should You Buy Bitcoin? Understanding the Ups and Downs

Lessons in cryptocurrencies from the past and a look towards the future

Noam Levenson


There are some things you can only learn after investing through several market cycles. It’s a fact — the perspectives and approaches you take when investing in bitcoin and other digital assets (or anything really) are entirely different the first time you invest than after the second or third cycle. With your first investment, you certainly lack the historical context, but even more importantly, you don’t know what it feels like to invest in crypto. If you are to be successful in investing in digital assets, you must understand the industry sentiment, the psychological baggage that investors carry with them from past cycles, and where the industry thinking is directed. This is what this article is about.

If you’re spooked after the recent crypto crash, read this.

Dejavu? This wasn’t last week, it was four years ago — Source: TechCrunch

I learned these lessons the hard way. I wish I had an article like this when I began investing. My hope is that after this article, you will at least have a contextual understanding of where we are with bitcoin — not an understanding based on hype articles like those published by CNBC, authored by someone who has never invested a cent in Bitcoin and only a year ago was certain it was going to zero. I want you to learn your lessons the easy way.

I am sorry to inform you that I won’t be answering the question everyone seems to want answering: Should I buy Bitcoin now? I can’t ethically and honestly answer this question, because, the truth is, I don’t know. I do know that you should buy Bitcoin. But I don’t know if now is the best time to do so. Anyone who tells you definitively has no idea what they’re talking about and you should ignore them. The bottom line is that NO ONE KNOWS where bitcoin is going — short-term. There are so many variables and so much of it depends on your own strategy, portfolio, and risk tolerance. What I will do is try to give you as many pieces of the puzzle, as straight to the point as I can. I’ll cut the fluff so that you can make your own informed decision.