Bitcoin FOMO is Back: Should You Gamble On It?

Huge stack of Bitcoin

Bitcoin’s price is up more than 25% in the last couple of weeks. It’s not just Bitcoin it’s moving up either. Altcoins are increasing in value as the days go by. All of this after Bitcoin struggled for close to two months, staying around $9,000 USD. As always, any time the price jumps up like this, the fear of missing out kicks in and people get greedy.

If you’re a Bitcoin investor a gamble that follows Warren Buffet’s advice, you may have heard Buffet’s famous saying: “be fearful when others are greedy, and be greedy when others are fearful”.

So the question is, have investors still waiting on the sidelines to get in on Bitcoin at the right price already missed the boat on this next bull run? Or is now the time to take profits and let fear be your guide?

Answering those questions really depends on answering a number of other questions first.

Did You Miss Out or Is It Time to Cash Out?

If you are one of the lucky gamblers/investors who got into Bitcoin in March 2020, right as the coronavirus was about to grab hold of the Western world, you might be thinking now is the time to cash out. First of all, you’re still likely new to Bitcoin if you only started in March, and the price back then was $3,100. You’ve probably tripled your money by now which means it’s time to go to the cashier and take out some of your money.

On the other hand if you just got in a $9,000 because you saw the price bouncing around a few weeks ago, you might think there’s still room to run. Many experts are predicting that Bitcoin should be trading on the $20,000 mark by the end of 2020. One thing to consider in light of those predictions however is that many of them were made at the beginning of the year, before everybody knew that the coronavirus would wreak havoc on economies and force people to stay at home.

There’s also a case to be made that the bubble the market is creating is about to burst once again, and we’re not just talking about Bitcoin here.

How Other Forms of Investing are Performing

Not to get too technical about broader market investing here but the S&P 500 is a measure of how the top 500 companies in America are doing. It’s basically an index that averages the stock prices of all those companies and allows you to buy into all of them for one share price. Since the coronavirus started grabbing hold of the world, that index fund is up from 2,200 points to 3,300 points. That’s quite a substantial gain!

Also consider that the price of gold is at an all-time high and even smaller niche investments like collectible coins, art and even sports cards are seeing all-time highs. All of this might be a sign of the fact that what goes up must eventually come down, especially good because many people who aren’t working are benefiting from government stimulus packages and using those packages as a way to invest or even gamble.

How You’ll Know What To Do

Not even a billionaire investor like Warren buffet can tell you what the market is going to do on any given day. That’s why the best gamble you can ever take is to commit a certain amount of your funds to investing and gambling, and keep some of your money safe. Invest in different things, not just Bitcoin. Manage your bankroll, and always keep some money for a rainy day. You never know when the next storm is going to approach.

Just like bankroll management, investing is always a long-term game. That’ll be true whether Bitcoin is worth $1 million tomorrow or $100 tomorrow.

Jack Choros byline

Jack Choros

Jack first invested in Bitcoin in 2016 and continues to gamble with it to this day. He loves the Toronto Raptors as much as he loves cryptocurrency. Jack’s work has appeared on ESPN Radio, Yahoo Sports, OddShark.com and many cryptocurrency related publications, namely BTCGG.com.

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