"Should I be investing in cryptocurrencies like Bitcoin?" I get that question a lot. In fact, it was one of the topics my extended family discussed over Easter dinner. My niece was pushing my sister and brother-in-law to invest a few hundred bucks in Bitcoin, but they were resistant. My input to the discussion was that, yes, they should invest in Bitcoin - and perhaps in other cryptocurrencies too. But not a lot. The price of Bitcoin, which is by far the largest cryptocurrency by market cap (around $1.17 trillion), has doubled this year. At the time of this writing, one Bitcoin was trading for $62,668 - up more than 800% from April 2020. The New Gold So what's going on? Well, several things, really. Over the long term, the price of Bitcoin has been rising because it has benefited from growing mistrust of fiat currencies, like the dollar and the euro. Its rise has also been fueled by suspicion of governments that are borrowing like mad to fund stimulus packages. Gold used to fill this role (so-called gold bugs are notorious for predicting the sky is about to fall). But now Bitcoin and other cryptocurrencies, which are independent of any central government, are increasingly becoming the go-to investments for the Chicken Littles of the world. And there's a bonus to Bitcoin over gold: There are storage costs involved in owning actual gold, while holding Bitcoin is free. In addition, Bitcoin, once a fringe investment, is becoming more mainstream by the day. Investment banks, like Morgan Stanley and Goldman Sachs, are beginning to offer their clients access to Bitcoin funds and other crypto investments. Coinbase Cometh And Wednesday brought a watershed moment for crypto: the public listing of Coinbase (Nasdaq: COIN), the best-known cryptocurrency exchange and the first to be publicly traded. The market cap of Coinbase following Wednesday's listing is now more than $63 billion, which makes it worth more than Nasdaq Inc. (Nasdaq: NDAQ). The New York Times called the Coinbase listing crypto's "coming-out party." I think that's a pretty good way to look at it. For many years after its 2009 inception, Bitcoin (and every other cryptocurrency that followed it) was considered as inscrutable as it was risky. That's less the case these days, with endorsements by Wall Street via various crypto funds and the Coinbase listing. So yes, you might consider putting a small portion of your portfolio into Bitcoin, even if just for fun. But remember, we don't recommend putting more than 4% of your money into any one asset, certainly not one that remains as risky as Bitcoin. But if you're still dubious about the benefits of cryptocurrencies, look no further than Manward Press' go-to crypto guy and founder, Andy Snyder. He's convinced that this is going to be "the Year of Crypto," and he wants you to go all-in with him. Cryptocurrencies saw some huge wins in 2020, but Andy says those were just teasers of what's to come during 2021. If you're interested in finding out how you can make the most of the crypto boom with Andy, just take a look at this video presentation. What do you think about Bitcoin? Is crypto something you'd invest in? What are your concerns or questions about the cryptocurrency market? We're always here to listen and answer your questions, and we love to hear your feedback. Just click here to drop us a line. Enjoy your weekend and stay safe, Matt | 
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