Why Bitcoin is a Must-Have in Your Investment Portfolio

Bitcoin is considered as an anti-inflationary currency. While other fiat currencies lose value due to inflation. Bitcoin was designed or programmed to be the complete opposite. That’s just one of the things that makes Bitcoin or BTC such a great asset.

FINANCECRYPTOCURRENCYRETIREMENT

10/29/20233 min read

Scarcity! Scarcity! This is one of the many reasons why you should own some Bitcoin.

There are only 21 million Bitcoins available, EVER!

Bitcoin is considered as an anti-inflationary currency. While other fiat currencies lose value due to inflation. Bitcoin was designed or programmed to be the complete opposite. That’s just one of the things that makes Bitcoin or BTC such a great asset.

Bitcoin has outperformed every asset class

As you can see, Bitcoin has performed significantly better than each of these assets. In spite of the fact that it has increased significantly over the past ten years, it still accounts for a very small portion of the market capitalizations of both gold and stocks. This shows that there is still a long way for Bitcoin to grow.

However, Bitcoin is more than just a performer with rapid growth. It might also act as an inflation hedge.

Bitcoin as a hedge against inflation???

Bitcoin needs to have several important traits of a store-of-value in order to be a hedge against inflation like gold and real estate. A store of value is, in a broad sense, anything that can be easily traded for something else and keeps its value over time.

So, in short:

A good store of value should keep or gain value over time.
A valuable thing must be able to be traded for something else, like gold or dollars.
Over time, the amount of zero or low quantity grows.
Bitcoin and fiat currencies both meet the first two criteria, but the last one is where they vary. The supply of fiat currency can be greatly raised with the push of a button, which makes each unit of currency worth less.

Take the U.S. money supply and compare it to the set amount of Bitcoins:

Real estate has almost no market growth, but it does happen. Gold has a low supply growth rate because itis hard to get gold out of the ground, process it, and then send it to different places. From 2021 to 2022,
the amount of gold grew by about 4%. Bitcoin’s new supply rate is less than 2% right now, and it will only go
down over time until it hits zero.

Bitcoin is more divisible and easier to share. For example, one bitcoin can be split into 100 million pieces.

Bitcoin is easy to send. Any amount of bitcoin can be sent to anyone in the world in just a few minutes. Gold is big and heavy, and it takes up room. Moving a lot of it over long distances costs a lot, because you need things like armored trucks and specialized shipping services.
Bitcoin is easier to check to see if it’s real: Unlike gold, fake bitcoin can’t really be used to buy or sell anything. There’s a reason why there’s a whole business committed to making sure gold is real.

Many people think that Bitcoin is a better way to protect against inflation than gold because of all of these reasons and the fact that it has done better than gold over the past ten years.
These are just a few of the many reasons why Bitcoin is a great investment. It is not a get rich quick scheme, but it is a currency that gives power back to the people. I feel that this is one of the reasons that is so attractive about BTC.

Need a place to keep your crypto safely? I recommend storing your crypto on a hardware wallet.

You can get yours here by clicking this link.

(The link above is my referral link. I use Ledger and really do like it's functionality and the peace of mind I get from storing my crypto offline.)

This is not financial advice. Please do your own research and contact a financial advisor before making any investments. Cryptocurrencies are very volatile, so be aware that the markets move up and down very easily.