If you don’t have some bitcoins yet (Cryptography: BTC)buying it is very likely that it will help you close your portfolio. Even a relatively small position, perhaps $2,500, is enough to expose investors to this important asset. And if you are willing to hold it for years, it can be a good source of growth as well as stability in turbulence.
Below are three reasons why Bitcoin is (almost) in everyone’s portfolio these days.
One of the most important reasons to own a bit of Bitcoin is that it can protect at least some of the total purchased electricity from surges in financial inflation.
The total number of Bitcoin is fixed by the hard cap of that protocol. There is about 1 million coins to be mined, or about 5% of the total allowed by the protocol. In contrast, no matter where you live, the government can print more money. In most cases, in the long run, it does, whether printing is unnecessary or if the outcome is beneficial or benign for the consumer’s purchasing power.
You don’t have to live in fear of hyperinflation and stack your pay on Bitcoin. But why leave yourself vulnerable when it doesn’t cost much to buy assets that offer some protection from the worst-case scenario? Furthermore, if the coin continues to perform like it has been in the past, it will gain value and ultimately pay for itself, whether or not the Fiat currency has lost its value.
Bitcoin’s market capitalization is currently around $1.9 trillion. The overall market capitalization of cryptocurrencies is only $3.2 trillion. The next biggest cryptocurrency is Ethereum, with a market capitalization of $335.6 billion and XRP, with CAP of $151.8 billion. There is no way to avoid the fact that Bitcoin is the flagship cryptocurrency of the entire crypto sector.
If you want to maintain a properly diversified portfolio, you need to be exposed to key sectors like cryptocurrencies. If you don’t have it, you risk missing out on sector-level growth. This is a key factor in the context of emerging regions, such as cryptography. Furthermore, the ongoing debate about whether or not there is a national cryptocurrency reserve in the US has very high chances that more growth is ongoing, even if it is not clear which assets will benefit most. It’s obviously expensive.
Investing in a leader is an easy way to gain exposure, and Bitcoin is the leader. The best part is that if the evangelist is right, if the future of the coin remains very bright thanks to the continued adoption by the government and major financial institutions, small investments will grow as proportionately as big ones. That’s what it is. So there are no floors that you can’t commit to get the right return.
The story continues