Should I buy Bitcoin now?

In the last 3 months, an increasing number of people have asked me if its a right time to invest in Bitcoin. The first time when someone asked me was when the price was 1200$. Nowadays the questions are – what do I invest in” – with about 1200 + coins traded on a variety of platforms.

Since then my answers have been consistent to each one of them –
“Why is it that you want to invest in bitcoin? or any other crypto currencies?”
“What do you understand about cryptocurrencies to invest in them?”
” Do you understand that these markets are completely unregulated and global in nature?”
” Then, Why do you invest in them?”

I give them a picture of 2 Stock market crashes that I experienced in my life time, that of the dot com bust around 2000-2001 and in 2008 the housing crash. Both times, the average NasDaQ and NYSE fell by about 40% within a day. I explain to these folks that this 40% fall is almost a monthly occurence in the crypto markets. Last month Bitcoin hit its peak of about 19500$ and bottomed out at around 10,700 i.e. almost a 48% drop in valuation within 1 month. I tell them that this is what the crypto markets are about –

Bitcoin chart

What we are seeing is a phenomenon that is unprecedented. A globally fungible and tradeable asset, that has multiple uses and is purely digital. One can buy in South Korea and Sell in Singapore or in the USA or in Europe….but just a few clicks of buttons.. added to that, these markets operate 24X7 and 365 days a year.

What I am worried about is that young college kids put in tuition money into these highly volatile assets, and sometimes loose out too much. We are seeing global speculation and greed of unheard off size… Most times, I point to them saying – a stock that has a low Beta or very low volatility but of moderate growth will bring them much better returns at a definite rate…

Personally, I understand or try to put in a honest effort to understand the underlying technology, the value addition each blockchain technology can create to society, and further the need for a coin as an investment vehicle to back that technology. That is when I invest – It is not for the sake of greed or downright getting rich soon …. though that is a nice side effect.