3 reasons why Bitcoin is a must-have for long-term investors

Bitcoin (Bitcoin 2.92%) It’s been an exceptional year, attracting investors from individuals to institutions to the next president. The top cryptocurrencies are up 122% in 2024 (as of December 30), once again crushing stock market performance.

As we set our sights on 2025 and beyond, you may be wondering whether or not to add this Digital assets Adding to your portfolio is smart, especially since it is trading 12% off its mid-December peak. I think it pays to remain bullish.

Here are three reasons Bitcoin A must for long term investors.

1. It’s a project

It is very difficult to argue against the opinion that Bitcoin is now a legitimate financial asset. This is the first factor that should compel investors to buy it.

As of this writing, the cryptocurrency market cap is $1.9 trillion. This is a far cry from its beginnings in 2009, when it was seen as a ridiculous form of Internet money that caught the attention of cypherpunks interested in prioritizing privacy and challenging financial institutions. Its current value rivals some of the world’s most dominant technology companies.

In January 2024, the Securities and Exchange Commission approved Bitcoin exchange-traded funds (ETFs) For the first time. This created a convenient, liquid, and regulatory compliant way for larger pools of capital to initiate purchases. It has essentially given cryptocurrencies recognition from policymakers in Washington and asset managers on Wall Street.

President-elect Donald Trump has also publicly expressed his support. He was a keynote speaker at a Bitcoin conference in Nashville, Tennessee, in July. During his speech, he said that he would like to create Bitcoin Strategic Reserve In the United States

Digital code has reached a point where it can no longer be ignored. She has bounced back from big pull-ups to become stronger than before. And it looks like it’s not going anywhere.

2. It’s digital

Another reason why Bitcoin makes sense as a portfolio addition for long-term investors is that it is digital in nature. At a high level, it is just a huge decentralized database and communications protocol. Being digital means going beyond boundaries. It is transferable, divisible, and tradable, especially when compared to physical gold.

In the past two decades, the world has become increasingly digital. The emergence of the Internet, smartphones and various applications is a trend that is difficult to ignore and has shaped our economy.

As we look to the future, it is almost impossible to believe that the world will not continue on this path, becoming more digital, technology-enabled, and data-driven. This is especially true if you believe artificial intelligence (Artificial Intelligence) will play a bigger role in our lives.

“The Internet will have a local currency, it is only a matter of time.” roadblock “AI systems and their agents will have to conduct transactions, and the most efficient way to do that will be a common protocol for the movement of money,” CEO Jack Dorsey wrote in his company’s shareholder letter for the first quarter of 2024.

Against this background, it makes sense that the value of Bitcoin, as a fully decentralized digital means of transferring value to others, will continue to rise.

3. It is rare

The final and perhaps most important reason why long-term investors should buy Bitcoin is its scarcity. Thanks to the blockchain network Half schedule Determining the inflation rate, there will only be 21 million coins in circulation.

This contrasts sharply with the current monetary system, where massive debt burdens, excessive money printing, and persistent inflation have become the norm. As citizens around the world see their countries Paper currencies Given that they are constantly insulted, it is not surprising that they realize that they want to own something quite as rare as Bitcoin, an asset that is not controlled by a single entity.

Bitcoin has had tremendous success over the past fifteen years or so. While future returns certainly won’t resemble historical gains, the returns can still be game-changing. Long-term investors should still consider buying the world’s top cryptocurrencies.