Digital Currencies including Bitcoin have exploded in value in recent months and many investors are starting to show interest in the new wave of global currency. With any investment opportunity comes the question of risk and reward – Bitcoin has failed that basic evaluation with many investors since it’s inception in 2009. Things are changing with a new wave of Bitcoin investment.
Bitcoin has been very hard for traditional investors to wrap their heads around, and for good reason. The currency is prone to massive value swings, faces consistent macro-environmental pressure and was recently declared a “scam” by financial industry giant Jamie Dimon, CEO of JPMorgan.
With all of these forces acting against Bitcoin, how has it been able to reach an all-time high, as of this post, of $5,900 USD while showing a massive 889% increase in value year over year? The savvy players are coming out of the woodwork and are ready to make their bets on the future of currency.
Here are the top 3 reasons that your portfolio needs to include Bitcoin investment moving forward;
- Bitcoin is Finite and Decentralized
With a total supply of only 21 million coins, Bitcoin is a finite resource that is subject to the whims of supply and demand. No government or organization can create more Bitcoin and it can not be used by a central bank as a means of cooling or warming market forces. This is a key factor in Bitcoin and is one of the most powerful reasons to invest now. Buying Bitcoin at $100 seemed crazy in 2013, buying in at $650 seemed crazy this time last year – buying at $5,500 today could very well look like a brilliant decision in the coming years. Remember, unlike a security or bond, you don’t need to buy a full coin unit when investing, you can buy as little as you would like when starting your Bitcoin investment portfolio. Figure out how much Bitcoin you can get for your Canadian or US Dollars.
- Bitcoin’s mass acceptance is happening quickly
The first thing learning in Macro economics courses is why a dollar is worth a dollar. It is generally accepted that if we all agree to the value of that small gold coloured coin, it remains that value. The same thing goes for Bitcoin. You are starting to hear a lot more about it, and not just on internet forums and data networking blogs, but with dedicated pages on Fortune.com and positive articles in Bloomberg. The first step in Bitcoins growth was acceptance and use, the step we are at now is attracting mass acceptance and the final piece in the future will ideally be general acceptance. With daily Bitcoin transactions rising and more mainstream outlets getting involved in the discussion, the signs of the beginning of mass acceptance is present. The value will continue to spike with acceptance and usage – get it added to your holdings before we get to general acceptance in a few years.
- Hedge your investments – run with it or get run over
With traditional powerhouse economies in uncertain circumstances and major global economic factors such as Brexit, US tax code overhaul and NAFTA renegotiations – we are not sure where the economic landscape could end up in the next few months or few years. Typically in times of financial uncertainty, hedge investments are where the savvy investor turns to cover their bets. Time to add Bitcoin to your Gold and Yen hedge holdings. Although they rarely disclose controversial holdings, Hedge Funds are making Bitcoin investments now too We all know an economic downturn will happen at some point (they always do and work in cycles), when it does, make sure you have some Bitcoin on hand to soften the fall.
Bitcoin Academy offers training courses for those looking to gain the skills, resources and confidence to get involved in Digital Currency investment and trading. Learn from industry experts about the ins and outs of Bitcoin operation and all of the basics in terms of buying, selling and storing Bitcoin. Check us out at www.bitcoinacademy.ca for our upcoming course schedule and more details.