Having seen the potential returns possible for 1,5 and 10%, the next question is how much should you allocate?
Past success does not guarantee future performance 🙂
It depends, just like for every investment you want to undertake, you already know your risk appetite. The more you allocate to bitcoin, the more risk you take. For an investor with a low-risk appetite, the amount you expose yourself is low and consequently, so are your returns.
As early written here, cryptocurrency is also a vehicle of investment though most conservative investors consider it to be more on speculation.
When bitcoin really went viral, many investors and institutions called it a bubble. I guess every market is a bubble until it bursts. Markets move in circles, from that pessimism and undervalued to optimism and overvalue.
Speculation is the purchase of an asset with the hope that it will become more valuable in the near future — without concrete or complete information or analysis and usually accompanied with high risk and a laser focus on the fluctuation of prices.
Crypto is traded based on its price and not any underlying value, just like gold. Its volatility is what makes it very attractive to aggressive investors. It’s not unusual to see a 5–12% loss in 24hrs but then see 10–20% gains in the following couple of days.