[IsaacL]

I made this mistake. Bought £1500 worth of btc a couple of years ago, and they've appreciated nicely. I didn't feel so clever during the year-long downswing, though. I've started putting most of my money in an index fund and only a small amount in gold each month (I'll probably start splitting my gold budget between gold and bitcoin at some point). I learned that investing isn't about making speculative bets but figuring out where your money needs to go to best fit with your life goals.

I was reading lots of perma-bear/libertarian bloggers, the type who predict impending financial apocalypse. I still think they have a case, which is why I still sock away some of my monthly savings in gold/btc. But I also now realise that you can't bet your entire future on one possible outcome, hence the bulk of my money going into the index fund. If I save up enough that it becomes worthwhile I might look into the Buffet strategy of individual stock picking (he says with a small amount to invest you can make superb returns in well chosen small-caps).