Why Bitcoin will be the investment of the decade
Right now Bitcoin is sitting at around $37,000 which is almost 50% from its all time high of over $64,000. It is safe to say that holding Bitcoin for a long time requires more than just diamond hands.
What if I were to tell you that there was a certain stock that lost 90% of its value before becoming worth more than $1 trillion dollars.
That was the case with Amazon stock after the tech crash. Needless to say that those who held onto Amazon through the crash up until today don’t have to worry about working for a living.
Do I think Bitcoin will be the next Amazon? I think Bitcoin can be a more important asset. That’s why I intend to hold Bitcoin even if it goes down 95% from its high. Am I mad? Am I nuts? No. Here’s 10 reasons to own Bitcoin for the next 10 years.
1). Bitcoin has already stood the test of time
People may think that Bitcoin is a new concept. Actually, Bitcoin is the oldest cryptocurrency on the planet. The coin has been around since 2009 and it has been through thousands of hacking attempts. Bitcoin has been banned by China numerous times and the coin has been forked over and over again. Guess what? Bitcoin continues to live on. Bitcoin can thrive by its mere ability to not be killed.
2). The U.S. dollar will continue to become more worthless
As you know, a dollar doesn’t buy what it used to. That trend will not change. It is safe to say that the trend of dollar devaluation could accelerate over the next decade. That gives people more reason to run to a store of value such as Bitcoin.
3). Bitcoin is truly deflationary with a fixed supply
As you know, there are only 21 million Bitcoin that will ever exist. There are currently 45 million millionaires on the planet. That means the average millionaire will never be able to own 1 Bitcoin. Like real estate in a highly prized market, the mere demand is going to push the price upward.
4). The world continues to be unpredictable
Like gold, Bitcoin is a hedge against unpredictability. Every decade, there is some sort of big crisis. We already had one with the COVID-19 pandemic. Chances are, there will be some sort of global crisis that will cause the price of Bitcoin to go higher.
5). There are nations where Bitcoin’s existence is critical
If you live in a developing country, then chances are that you are being paid in a devaluing currency that buys you less and less. Bitcoin fixes this. You can convert your local currency to Bitcoin and secure your purchasing power. For some people, Bitcoin will be the most common sense investment.
6). There is no substitute to Bitcoin
Everytime cryptos go into a bull market, you will see a buying frenzy in altcoins as well. Over the short term, some of these altcoins will deliver returns that will absolutely embarrass Bitcoin. It is inevitable that some new investors will declare that Bitcoin is dead and the shiny new Altcoin is the new King of cryptocurrency. Yes, while some altcoins will survive, none can be a true, safe and well-known store of value as Bitcoin.
7). Bitcoin is the gateway cryptocurrency
For retail, institutional and sovereign buyers, Bitcoin will likely be the first cryptocurrency that they will buy. This will make Bitcoin the “brand leader” when it comes to cryptocurrency. Therefore, it is smart to have some of your investment in the top cryptocurrency for the long term.
8). Sovereign purchases of Bitcoin is inevitable
The 2020 Bitcoin bull market is known for the number of institutions and companies that have invested in the cryptocurrency. It is therefore inevitable to think that sovereign wealth will come into Bitcoin next. Some countries such as China may be secretly buying right now. That could only push the price of BItcoin higher.
9). Tech innovations is pushing more finance online
We are moving towards a more global, cashless society. That means there is going to be a demand for a quick transfer of large amounts of wealth. This is exactly what Bitcoin is designed to do. While Bitcoin is known as a store of wealth, it will be known as a more transactional currency in the future.
10). Young Bitcoin buyers will gain more wealth and put more into crypto
Bitcoin and cryptocurrency was first adopted by millennials and zoomers. As these younger people get older and build wealth, they will put more of their money into Bitcoin. This gives the cryptocurrency the opportunity to grow over time.
Playing the long game with Bitcoin
Bitcoin can be hard to hold on to. That’s why it is a good idea to only invest with funds that you don’t need in the short term. If you can hold to your Bitcoin and tune out the noise, you can enjoy the type of returns that Amazon stock holders enjoyed during the past two decades.
Bitcoin is the future. The question is, is it your future?