Bitcoin Explained
Is Bitcoin a Good Investment? The Case For, the Risks and How to Decide
| Case for | Case against |
|---|---|
| Fixed supply of 21 million coins | Large price swings, including falls of more than 70 percent |
| Supply growth halves roughly every four years | No earnings or dividends to value it on |
| ASX and US listed ETFs make it easier to hold | Rules and tax can change |
| Over 15 years of history as a network | Losses from fraud, hacks or lost keys |
Questions to answer before you buy
- Can I hold through a fall of 70 percent or more without selling?
- How long am I planning to hold?
- What share of my total portfolio will it be? See how much crypto to own.
- Where will I store it, and who controls the keys?
- When will I take profits? See the Profit Ladder guide.
In the 5-step SHIFT Method (Set your plan in writing, Hold Bitcoin as your core, Invest in on-chain businesses with real revenue, Filter every coin before you buy, Take profits on the way up), Bitcoin is Step H: Hold Bitcoin as your core. That is a teaching framework, not a recommendation for your situation. Moneysmart: Crypto assets explains the risks of crypto assets.
Ben gives his honest view on Bitcoin as an investment, including the risks. From the Ben Simpson YouTube channel.
Quick questions
Is Bitcoin a good investment for beginners?
It can be part of a beginner portfolio if you size it carefully and plan to hold for years. Bitcoin is volatile, so only invest what you can afford to see fall a long way, and learn how it works before you buy.
How far has Bitcoin fallen in the past?
Bitcoin has had several falls of more than 70 percent from a peak. After its November 2021 high it fell by roughly three quarters by November 2022. Falls like this are part of its history.
Why do people hold Bitcoin long term?
Bitcoin has a fixed supply of 21 million coins, new supply is cut roughly every four years in the halving, and it is now held through ETFs by funds and companies. Long term holders see it as scarce digital property, but none of this guarantees future returns.
How much of my portfolio should be in Bitcoin?
It depends on your goals, timeframe and how much risk you can carry. Our guide to how much crypto to own walks through five sizing questions and published research.
Written by Ben Simpson, founder of Collective Shift and TEDx speaker, and reviewed by Matt Willemsen, Director of Research. As of November 2026.
Published 2 November 2026. Updated 2 November 2026.
General information only, not personal financial advice. Collective Shift provides research and education. Consider your own circumstances and speak with a licensed financial adviser before acting.