Why Bitcoin needs to be in everyone’s investment portfolio

Discussion in 'Bitcoin (BTC)' started by JVanL, Oct 21, 2019.

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  1. JVanL

    JVanL Contributor

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    With a 235% eight-year-compound annual growth rate, you’d be crazy not to hold some of the OG crypto.

    Bitcoin is the OG cryptocurrency, created by Satoshi Nakamoto in 2008, it’s a digital asset that anyone, anywhere can hold. In the 8 years since it went live, Bitcoin (BTC) has achieved an incredible 235% compound annual growth rate, which really only has to do with the merit of the coin itself. As the very first cryptocurrency, it holds dominance over the market, so its value is dictated by itself and very little else. In other words, if you’re thinking about investing in cryptocurrency, you’d be crazy not to buy Bitcoin. If you want to know more about why bitcoin needs to be in everyone’s investment portfolio, keep reading.

    Why Bitcoin?

    In the Capital Asset Pricing Model, it’s crucial that investors look for assets that have high returns, with low correlation to the rest of their portfolio. Crypto, and particularly Bitcoin (BTC), more than qualify.

    At the time of writing, Bitcoin has a market cap of $150 billion USD, dominating the crypto markets by 66.4%, and things are looking up even more. We’re anticipating a halving event in May 2020, which is essentially when the reward that miners receive for validating transactions and creating blocks on the blockchain is halved. This has historically always indicated a bull run for Bitcoin. In fact, a 2016 halving event pre-empted the iconic bull run of December 2017, when BTC reached its highest ever price of +/- $19,000 USD. Analysts expect the next bull run to take place shortly after the halving in 2020, and argue that Bitcoin prices could reach new heights.

    Many crypto naysayers will argue that you’ve missed the boat – but that’s simply untrue. Bitcoin is still a young asset, having only been around for about a decade. It’s still fairly volatile, so a successful investment will require careful planning, strategy and good timing. Bitcoin will still fluctuate, but now is as good a time as any to make your investment and then hold on to it. Timing is everything in the crypto investment game, and you’ll have to learn the art of patience.

    Bitcoin - What You NEED To Know Before Investing in Bitcoin

    3 reasons to invest in Bitcoin

    Here are 3 reasons why Bitcoin needs to be in everyone’s investment portfolio:

    • High adoption rate: Compared to all the other cryptocurrencies, Bitcoin has shown itself to be credible and sustainable. Because of this, Bitcoin has a much higher adoption rate than other coins, and is already being accepted as a legitimate form of currency by many state organizations, financial institutions, and businesses. Now that the crypto market is more bullish, we are seeing even faster adoption. This will drive the price of the coin up as supply dwindles and demand increases.
    • Beginning of a bull run: All signs point to the fact that we’re at the start of a crypto bull run. Bitcoin (BTC) currently has quite high liquidity as well as dominance over the crypto markets, unlikely to change in the foreseeable future.
    • Be part of the crypto revolution: Crypto and blockchain are revolutionary technological inventions that are going to be part of shaping our future as we know it. With endless uses, there really is no limit to where this tech can take us.


    Bitcoin: the OG cryptocurrency

    Now that we’ve looked at some of the reasons why Bitcoin needs to be in everyone’s investment portfolio, it’s pretty clear that this cryptocurrency is a force to be reckoned with. Bitcoin is the original cryptocurrency, it holds dominance over the crypto market, and at the time of writing Bitcoin’s price sits at 1 BTC = $8 348, 60 USD. With an 8-year-compound annual growth of 235%, and a bull run on the way, now is as good a time as any to look into Bitcoin.

    Want to start investing in Bitcoin? Check out the world’s best social trading platform, eToro.

    Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.

    Why Bitcoin needs to be in everyone’s investment portfolio - eToro
     

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