It’s all Bitcoin all day in my Twitter feed these days. Quiet are the Tesla bears, the Fed-obsessed, and even the gold bugs. The HODLers are out in full force celebrating Bitcoin’s parabolic, seven-fold resurgence from the ashes of $5,000 (as of the morning of this writing). Frankly, I’m skeptical of Bitcoin. I see it as a speculative tech stock, not digital money. However, I’m not avoiding cryptocurrency. Instead, I’m trying to determine an appropriate position size and strategy consistent with my investment framework.

I’ve been around the Bitcoin hoop for a while now. I traded a minimal amount in the early days and made no significant gains (in absolute terms). At first, I got drawn into the prospect of decentralized money and banking—the theoretical and practical benefits that cryptocurrencies potentially possess. However, I expected more development 12 years into Bitcoin’s existence. To me, it still more resembles a tech stock in 1999 than a burgeoning currency—all potential; no (meaningful) practicality (yet).

While I’m certainly not the most plugged into the cryptocurrency scene, I do understand it. Given Bitcoin’s high market capitalization ($666 billion as of this writing)—eclipsing that of Walmart, Johnson & Johnson, and all but a handful of blue-chip companies—I’m surprised that Bitcoin still has so little utility in comparison with these household names. Indeed some people are using Bitcoin, but the overwhelming majority appears to be hoarding it in the hope of higher prices. CLICK for complete article