If you are sure it will keep going up at this pace, why not take everything you own, sell it, and invest in (or: speculate on) Bitcoin? That's not a rhetorical question.

Personally, given its volatility, it doesn't make much sense to me to hold much in Bitcoin outside of what you plan to spend relatively immediately. It could go up or down by 50% overnight - not a great store of value, either way.

Some don't mind volatility as long as (a) the long-term expected gain is positive; and (b) the return is uncorrelated with more traditional investments.

Paying out in Bitcoins is very low risk since there is only a small holding time between acquiring the Bitcoins and making the pay out.

isn't that equivalent to asking why anyone would be foolish enough to not have 100% of their money in bitcoins given its meteoric rise over the past few weeks?

There are reasons to not have all your money in bitcoins, therefore there are reasons to sell bitcoins (even if you just bought them specifically for that transaction (for the anonymity for example))

edit: I realised this sounds a bit snarky, but I'm honestly curious. Is buying with bitcoins really that different from not investing in bitcoins?

When a currency is experiencing deflation it makes sense not to spend it. In that world, keeping my money under my mattress is the soundest investment strategy.

Why would I buy anything with my bitcoins if a week from now they're going to be work X% more? I'd just wait until then.

> Why would I buy anything with my bitcoins if a week from now they're going to be work X% more? I'd just wait until then.

If you believe this, then surely you also believe you should invest 100% of your money in bitcoins?

If not, then you believe only X% of your money should be invested in bitcoins (to avoid the risk of losing everything in a collapse)

Therefore if you have >X% of your money in bitcoins, you should spend some.

> When a currency is experiencing deflation it makes sense not to spend it. In that world, keeping my money under my mattress is the soundest investment strategy.

A does not imply B.

If the currency deflates at 1% but you could invest at 2%, your mattress isn't the most sound investment strategy.

Bitcoin is deflating at a far greater rate than you could make investing without some kind of extremely leveraged scheme.

Correct, but how certain are you that it will continue to deflate? It has already once lost 90% of its value in a short period after a parabolic rise. Could it not do that again?