Should you cash in bitcoin profits or wait for the moon?

Jan 22, 09:36 PM
In case you hadn’t noticed, bitcoin went on bit of a tear recently. And as the price of the leading cryptocurrency soared again, so did the number of stories written about it.

Bitcoin is an interesting tale, a welcome diversion in a Covid-bound world, and the circus around cryptocurrency is the gift that keeps on giving for journalists.

But the vast majority of those column inches focus on two things: bitcoin’s price and should you invest?

A question that’s not so much asked is what should you do if you’ve reaped handsome profits on bitcoin or another cryptocurrency? 

Should you cash in those gains or – to combine a couple of crypto phrases - hodl on the basis that it really could go to the moon? 

(Where that moon is and when it’s been reached is as yet undefined.)

On this week’s podcast, we dive into the story of a This is Money reader and listener who told us about what it’s really been like to hold bitcoin long-term and how although he’s not quite got Lamborghini money, he did buy a Skoda and pay off some of his mortgage.

Georgie Frost, Lee Boyce and Simon Lambert also look at the rival cryptocurrencies to bitcoin and Argo Blockchain, the small UK listed company that’s come from nowhere to place among investors top recent share buys.

On a more pedestrian note, the team also discuss inflation-beating savings accounts and where they can be found – spoiler alert, don’t get too excited – and property guardians: would you live in an empty building for cheap rent?

And finally, there are some new concocted financial terms doing the rounds – how many can Simon and Lee guess correctly?