Should I invest in Bitcoin?

Tesla announced today that it acquired $1.5 billion worth of bitcoin in January and it may accept bitcoin as payment in the future. The new sent bitcoin’s price up 11% to over $44,000, an all time high. ‎

I admit, I have bitcoin FOMO. At the moment, I own $893 worth of cryptocurrency. That makes up about 0.02% of my portfolio, or basically nothing. A couple years ago I bought $400 of the top four crypto currencies on a lark ($100 each of Bitcoin, Ethereum, Litecoin, and Bitcoin Cash). Of the four, only Bitcoin is way up, that $100 is now worth $572. ‎

If I could go back in time, would I invest more in Bitcoin? Of course! Because now I know that it went way up. Yet still, we have to make decisions about what to do going forward. And going forward I still have no idea what Bitcoin is going to do. If it works exactly as intended, it was never designed to be a wealth generating investment (except possibly for the anonymous creators). It’s designed to be a transactional currency, or a store of value. I don’t invest in those things. I invest in things that generate profits, dividends, income, etc. Things like index funds and investment real estate.‎

I can imagine a world where in 40 years the price of Bitcoin is still $44,000. Or $5,000. Or it doesn’t exist anymore. Or $1,000,000. It’s speculation. Buying it purely in the hopes that someone in the future will pay you more for it. And there are reasons to think that might be true. The system it