What I’ve Learned from Owning Bitcoin for 7 Years

er my tenure of ownership, I have experienced significant drops in the value of Bitcoin, with some falling by more than 70%. However, I have also witnessed the value of my coins increasing by triple digits at various points. Embracing this volatility and taking advantage of big drops in value has led to profitable outcomes, but it has been a rollercoaster ride that requires nerves of steel. Bitcoin is not an investment for the faint-hearted.

Despite the gains I have made from owning Bitcoin, I have always treated it as a small part of my overall investment portfolio. This intentional decision was made to mitigate the risk of potential losses if the value of Bitcoin were to plummet. While the thought of cashing out for a luxury purchase like a Lamborghini may be enticing, I have prioritized the long-term security of my wealth. Even to this day, the majority of my investments are in traditional assets like ASX and international shares, which generate income and have intrinsic value. I firmly believe that betting a substantial portion of one’s savings on any cryptocurrency is not a prudent financial decision.

In conclusion, owning Bitcoin for over seven years has been a valuable learning experience in the realm of investing. It has taught me to navigate the polarizing opinions surrounding cryptocurrencies, acknowledging the merits and drawbacks without falling prey to extreme viewpoints. Embracing the volatility of Bitcoin has allowed me to capitalize on fluctuations in value, but it also demands a high tolerance for risk. Despite the success I have enjoyed with Bitcoin, I maintain a cautious approach by keeping it as only a small fraction of my investment portfolio. This strategic allocation ensures that I safeguard my wealth and prioritize long-term financial security over short-term gains. Bitcoin remains a fascinating asset class, offering unique opportunities and challenges for investors willing to tread its tumultuous waters.