Bitcoin's price fell from 66 500 USD to 48 324 USD currently or approxiamtely 25 % decline from its recent peak in the space of less than 30 calendar days.
Yes, in my opinion, valuation wise, investing in Bitcoin and other cryptocurrencies is worth the risk. It is just that the volatility or the price declines are very large. But a full history chart of Bitcoin's price in USD shows the main cryptocurrency has risen 150 fold for less than 6 years.
Yes, Bitcoin is still not adequate for pension funds or endowments portfolios, or at least not for more than 2 % of their assets.
However, the proverbial stable, value stocks, institutional investors keep buying like General Electric, JPMorgan Chase, Morgan Stanley, Goldman Sachs, AT&T, Chevron, Exxon Mobil, Verizon, Walmart, Target Corporation, Costco, IBM, Intel, Honeywell, utilities like Nextera Energy, Duke Energy, AIG, large capitalisation materials stocks did fell 50 % or more in the 2008-2009 Great Recession and subsequent stock market crash.
In other words, risk adjusted, investing in emerging technology stocks and emerging technologies like Bitcoin, cryptocurrencies, artificial intelligence of which Bitcoin's blockchain algorithm is part of is worth the risk. At least in terms of valuations, especially in more than 5 years holding period. That is my personal opinion and the last 20 years of stock market history clearly supports my thesis, especially the last 8 years since the emergence of AI or Artificial Intelligence.
If one enters a single technology stock at its price peak or Bitcoin or other cryptocurrencies, one can loose more than 70 % of its investment of course. As stocks like FitBit, GroupOn, DDD, GoPro, Zynga, Snap, Pinterest, Robinhood markets, Virgin Galactic and many other small and mid capitalisation technology companies and more peripheral cryptocurrencies have clearly shown.
Bitcoin and its underlying blockchain algorithm will change the world as we know it. And not only because Bitcoin and other cryptocurrencies save people time, effort, and money. The ones that are left behind by the new trends, will fall behind and not prosper. The new trends like cryptocurrencies have to prove viable, of course.
One just needs not to hold his or her eggs in one basket, or diversify its investment portfolio, of course. Yes, by diversifying you miss the opportunity for home runs or multifold return on the investment. But one avoids also catastrophic risk.
And its is extremely difficult to value emerging technologies like Bitcoin and cryptocurrencies. Not only does everything change, but it changes unexpectedly, abruptly and on a huge scale in such young industries.
One just has to adapt. Slowly, painfully and efficiently. Things do change, but they also remain the same. A classical Bayesian argument. The Lean Startup methodology is all about adapting, while Peter Thiel's Zero to One makes the argument of one large, stay the course, stable, strategic bet.
It is difficult to say who is right. Bitcoin and other cryptocurrencies are disrupting our world, but their long-term future remains uncertain.
All of us have to thread carefully, I think. Investors, traders, banks, money transfer firms, regulators, politicians and ultimately the people of the world.
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