Don’t invest recklessly

I posted about this just a few months ago, but I feel that it’s necessary to repeat. The Bitcoin price is on an unbelievably ridiculous upswing which is rather likely to be a bubble. If you’re trying to get rich quick by dumping your retirement funds into BTC at $10 k, then your “investment strategy” is not much better than person betting everything on a game of roulette. High-risk-high-reward expending is not inevitably bad, but you have to seriously look at your thought process to make sure that you’re not 😛 TAGEND Being blinded by dreams of get rich rapidly, similarly to people who dump money on very-negative-EV lottery tickets. Get wrapped up in “HODL” memes, reddit commentaries, and other groupthink, which is sometimes fun, but perfectly the last appropriate source of investment advice . .” Acting based on panic thinking like, “OMG the price is going to$ 1 million and I will miss my opportunity forever if I don’t buy right now” or “OMG the cost is going to $0.01 and I will miss my opportunity eternally to retain some value if I don’t sell right now”. Investing more than you can afford to lose. Bitcoin is HIGHLY, HIGHLY speculative. No investment advisor would tell you to set all of your life savings into MSFT or whatever, and MSFT has a market cap 4x larger than Bitcoin. Although I believe that it is very unlikely, there are several ways in which the value could drop precipitously, even to zero. For example, there is no mathematical proof that the cryptographic algorithm used in Bitcoin are actually secure — they are merely believed to be secure because nobody has been able to break them after several years of intense scrutiny.( I’m not here recommending “diversifying” into altcoins — altcoins are almost all complete junk, and price-wise they follow BTC but with even more volatility, so they’re not really useful for diversification .)