Of all the uncertainty and volatility surrounding global tariffs, it is understandable why many investors are currently planning to avoid crypto. After all, cryptocurrencies — just like stocks — have fallen all over the board, some of which have fallen 50% a year.
But there is one cryptocurrency you might want to buy now and hold forever, and it’s Bitcoin (Cryptography: BTC). This is why.
Perhaps the biggest factor in Bitcoin’s favor is its incredible resilience. Over the past 15 years, there have been several booms and bust cycles, and are well known for their volatility. But here’s the problem – with each major decline, Bitcoin bounced back and reached a new high.
So, even if you think Bitcoin is heading towards a year-long smell in 2025, it’s worth looking back at the previous market cycle to see how quickly Bitcoin was ultimately rebounded. The three important years to consider are 2014 (when Bitcoin fell 57%), 2018 (when Bitcoin fell 74%), and 2022 (when Bitcoin fell 64%).
After all of these epic collapses, Bitcoin has achieved another record high. For example, consider the last Bitcoin market cycle. Bitcoin hit a high of $69,000 in November 2021, and ultimately fell below $16,000 in November 2022. But Bitcoin took off from there, posting triple digit percentage returns in both 2023 and 2024 before hitting a brand new high of $109,000 in January.
Historic performances do not guarantee future results. However, historical records suggest that Bitcoin has the ability to bounce back from its large hideouts. Therefore, if tariff uncertainty has you on Tenterhook, this may provide some mind.
2024, WisdomTree (NYSE: WT) We have published a comprehensive report that analyzes Bitcoin performance compared to eight asset classes. We looked at the period between 2012 and 2023 to see how Bitcoin stacked up with stocks, bonds, commodities and gold.
It was amazing what it discovered. In nine of these 12 years, Bitcoin was the world’s most performant asset, and it wasn’t even close. However, in the other three years (2014, 2018, and 2022), Bitcoin was the world’s worst performing asset, and it wasn’t close either.
If Bitcoin were a race car driver, it would be Ricky Bobby, the character Will Ferrell played on the night of comedy Talladega. His motto was “If you’re not the first, you’re the last.” It summarises his reckless, well-known mentality from doing it. Sometimes, it leads to winning the race. It also leads to spin-outs, destruction and inability to finish the race.
The story continues
Image source: Getty Images.
Still, you definitely need to be satisfied with the volatility of Bitcoin. Most likely you may come first. But in others, you need to be prepared to accept the loss that stirs the stomach.
Now, 2025 appears to be one of those relaxing years of stomach. Bitcoin is down nearly 25% from its all-time high of $109,000 in January, with few indications of a quick turnaround.
When it comes to Bitcoin, it’s important to maintain a long-term investment mindset. According to Cathie Wood of Ark Invest, you should be willing to hold Bitcoin for several years to optimize your profits. If you’re simply looking at Bitcoin as a short-term momentum play, then it’s all wrong.
In Ark Invest’s Big Ideas 2024 report, Wood clearly laid out that Bitcoin is superior to all major asset classes over the long term. Over the past seven years, Bitcoin’s average annual revenue was 44%. Other major asset classes averaged only 5.7%.
Furthermore, Bitcoin’s performance has improved the longer it lasts. So, for example, investors who held Bitcoin for seven years can expect an average annual return of around 70%, while investors who held Bitcoin for just four years can expect an average annual return of around 55%.
The last factor in Bitcoin’s favor was that it finally entered the mainstream. The launch of a new spot Bitcoin ETF in January 2024 was an important reason. These ETFs have opened up Bitcoin to hedge fund managers, institutional investors and daily investors, and are already familiar with funds traded on exchanges. Suddenly, Bitcoin was as easy to buy as tech stocks, and over $100 billion was poured into these ETFs.
There could be more mainstream acceptance of Bitcoin coming. The Trump administration has made Crypto a priority and has taken steps to increase Bitcoin’s future prospects by creating a strategic Bitcoin reserve. Future purchases of Bitcoin by the US government will clearly be a major factor for Bitcoin prices.
Given all this, Bitcoin may be the best cryptocurrency to buy and hold forever. But don’t forget to give in, as this can be a wild ride.
Consider this before purchasing inventory with Bitcoin.
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Dominic Basulto has a position in Bitcoin. Motley Fool has a position and recommends Bitcoin. Motley’s Fool recommends WisdomTree. Motley Fools have a disclosure policy.
This might be the best cryptocurrency to buy now and hold forever
