This is one of the best articles I’ve read so far on ‘investing’ in bitcoin. Xapo founder and CEO Wences Casares stays away from assuming it’s the best investment opportunity to ever come along, or that it will be the new gold, or, even worse, that bitcoin offers a secure store of value and little volatility. Because bitcoin does not necessarily represent anyone of that. In fact, Casares estimates there’s a 20% chance that bitcoin will fail, and could do so overnight.

But, because of the massive opportunity, Casares mentions a 50% chance that bitcoin will hit USD 1 million within the next 10 years, you should own just a little bit of bitcoin. Basically, Casares says not to treat bitcoin as an investment at all, but more like a option-like ‘mini bet’ that could change your life. Below are his three main takeaways on why to own bitcoin:

I recommend these three simple steps:

  1. Take 1% of what you have, and buy bitcoin (all at once and at the market price)
  2. Carry it at cost
  3. Do not touch it for 10 years

Read the complete Casares blog post here