Written

For

The

Australian

-

Bitcoin’s

surge

a

test

for

the

sceptics

Up almost 500 per cent since the start of 2023. That's what bitcoin has delivered, and it's forcing even the most stubborn sceptics to take another look.

The recent surge isn't happening in a vacuum. Donald Trump's election win has poured fuel on the crypto fire, with the president-elect flagging plans for a strategic bitcoin reserve akin to America's gold holdings. Combine that with the Fed's more accommodative stance and returning retail enthusiasm, and you have the perfect cocktail for higher prices.

But before you rush in, remember Warren Buffett called bitcoin "rat poison squared" and famously said he wouldn't buy all the bitcoin in the world for $25. His argument? It has no intrinsic value. It's not backed by a government or a gold reserve. It exists because someone created it and others keep paying more for it.

The bulls counter with scarcity (only 21 million coins), decentralised networks, and the "digital gold" narrative. Both sides make fair points, which is exactly why every seasoned investor should revisit the question now — either finally take a small position or firmly reaffirm your decision to stay out.

If you decide to dip a toe in, there are three main pathways. You can go direct via a reputable Australian crypto exchange, buy an ASX-listed bitcoin ETF from the likes of Global X, VanEck or DigitalX, or take a broader exposure through Betashares and Fidelity baskets covering miners, exchanges and blockchain companies.

My word of caution: the boom-and-bust cycle is brutal. Investors who bought near the 2021 peak are still underwater, while those who waited another year are up three to five times. Timing matters enormously.

Here's my rule of thumb — by the time you see "cryptocurrency soars" headlines splashed across newspapers, the easy money has usually already been made. Treat any exposure as a raffle ticket, size it accordingly, and never invest more than you can afford to lose.