From a crypto skeptic.
Crypto is the new word for gold. People often don’t understand new trends and miss the opportunity. Betting spare change on Bitcoin might not be any crazier than betting on the stock market.
The world is dealing with a unique crisis, both economically and health-wise. Unique problems require unique solutions. The US dollar is plunging, and the Federal Reserve keeps on pumping trillions into the economy.
The world is not ending anytime soon, but your finances might use a crypto boost. You might build a stable future, with a crazy unstable asset. Here are 9 reasons to buy bitcoin and hold it for the long run, from a crypto skeptic.
1. Federal Reserve is Gambling
Unprecedented times bring an uncertain future. Money doesn’t like uncertainty, especially when the institutions that are supposed to take care of stability play the short game and gamble with the whole economy.
Nobody can tell if the current FED’s policies are going to work or ruin the whole US economy. Fed is printing money on an unprecedented scale, and the balance sheet my son max-out at 10 trillion new American dollars in the system.
Buying Bitcoin and Ethereum right now might serve as a hedge against the US government and another monetary fiasco.
2. Crypto is Counter-Cyclical
Paul Tudor often says how Bitcoin reminds him of stories about the California Gold Rush. Bitcoin is acting countercyclical, which means that it goes in the different directions of the average markets.
Gold is also used as a hedge against financial trouble in western markets. When usual assets go down, crypto and gold go up.
3. Leap of Faith
Said Godin didn’t believe the Internet was about to become such a hit. He found it slow and unreliable. Quick jump to 2020 and Seth Godin is the ultimate entrepreneur for the digital age. He runs one of the most famous blogs and newsletters.
Who knew social media would become such a driving force? History teaches us how taking a leap of faith is sometimes insanely profitable.
4. Bitcoin Futures
Bitcoin is becoming more stable. The ride is still wild, but with the option to buy futures you can expect a certain amount of stability in crypto markets.
Investors can place positions on the future of the coin, and that brings collective minds to discuss the average future price. Markets are a form of collective psychology. And future price consensus can create a degree of stability.
5. The Bull Run
Bitcoin is on a three months-long bull run. Deteriorating global economies are driving people to buy cryptocurrencies.
Both Bitcoin and Ethereum are at the yearly all-time highs right now, outperforming Gold by a wide margin. And the gold price stands at all-time-highs in the meantime.
The bulls are far from looking exhausted, and this might be the moment for the crypto market to shine.
6. BTC Halving
Bitcoin halving is a unique event that halves the amount of freshly minted Bitcoin from each block. The event takes place roughly every 4 years.
Halving has happened three times in history, with the last one being in May 2020. Historically, price and demand have surged in the following months and years after the halving events.
7. The Limited Amount of Currency
Bitcoin is used more as a commodity, and less as a daily currency. The current asset class might change once the final Bitcoin comes into circulation.
BTC has a final supply of 21 million coins, and we currently have 19 million minted coins in circulation.
Blockchain is a young technology with various applications that have the power to change the world. You are directly investing in the development of blockchain when buying Bitcoin.
If the technology proves to be the global gamechanger, that might drive the price of your investment.
Governments still don’t have the right tools to confiscate and attribute cryptocurrencies to individuals. You can protect your money in case you step on the wrong side of international law or fall in the pit of political tensions between the US and the rest of the world.
Word of Caution
You can be skeptical of new technologies and still land on the right side of history. But don’t overexpose yourself. Bitcoin is a gamble, and nobody can tell you exactly where the market might move.
If you have spare change find yourself a crypto wallet and buy Bitcoin.
You never know where the crypto ride might end. If you were that pizza place that accepted 10,000 Bitcoins for two large pizzas, you would have $113 million today. But you can’t bank on it. Nobody knows the future. Take a calculated leap of faith.