It’s 10:05 a.m. EST on Sep. 3 and Bitcoin‘s price is hovering right around $50,000. The leading crypto asset has staged an epic comeback to the upside after languishing below $40,000, and even briefly below $30,000, throughout the summer.
Volatility is par for the course when it comes to cryptocurrencies. However, it’s still helpful to make a game plan for when crypto prices move rapidly in either direction. Since Bitcoin is currently on an uptrend, it’s a perfect time to ask yourself if it is worth buying — even at a higher price tag.
Why Bitcoin has been a great investment
Bitcoin has faced its share of criticism from reputable investors who see it as a scheme to make money. It’s common to attribute Bitcoin’s success solely to speculation. Even Charlie Munger, Warren Buffett’s right-hand man, has been vocal about his disdain for investing in Bitcoin. Putting your hard-earned savings in contrarian asset classes is difficult when investors you admire say it’s a bad idea.
It goes without saying that greed and speculation have played a large role in Bitcoin’s ascension. But saying they are the only reasons behind Bitcoin’s rise is a bit of a cop-out.