Why you should consider bitcoin when diversifying your investment portfolio

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Investopedia defines an investment as “an asset or item acquired with the goal of generating income or appreciation.” There are tons of things you can invest in including stocks, bonds, real estate, and mutual funds. In the last decade, one more investment opportunity emerged: cryptocurrencies (bitcoin was the first). With the creation of bitcoin came another way to invest money with a potential of earning a significant profit.

Bitcoin has proved itself to be one of the biggest investments of the last decade. It has proved itself to be a lucrative investment to some, making them rich in the process. This is due to all the price spikes that the coin has experienced over the years – including an all-time high of around 20,000 USD per BTC. If people were fortunate enough to have invested when bitcoins didn’t amount to much, then they would be swimming in money – even considering the price it’s in right now (as of the time of writing, 1 BTC = 7,943.78 USD).

So how do these big-time investors show that they are qualified to invest? Usually, they will advertise their investment portfolio. This portfolio is basically a physical representation of all the assets that an investor holds.

The big question here is: let’s say you’re an avid investor looking to expand as well as showcase you investment prowess, would you say that bitcoins have a place in your investment portfolio? Here’s a hint: yes.

A shiny new coin for your portfolio

Bitcoin has always been in a league of its own when it came to investment opportunities. This largely has to do with how the price can get volatile at times. It becomes either a way to make or lose a lot of money within a short time frame (high risk, high reward).

When it comes to adding it into your investment portfolio, you might want to think about it because it can do a lot of good for you as an investor. First of all, it shows that you are innovative and forward thinking. Not only that, it implies that you keep up with the times – not only with bitcoin but with cryptocurrency in general. It’s important to know what kind of world we’re living in now and that cryptocurrencies are a part of the financial stream. Having bitcoin listed on your investment portfolio shows that you are not only aware of that, but you are just as much a part of the community that uses it. It shows that you know how to buy bitcoin and you know how to make a profit out of it.

Having bitcoin will also show people that you are technologically savvy. It will let people see that you have practical knowledge about the issue, but they will also see that you have the ability to make good judgments when it pertains to this matter. It shows people that you keep up with the whole FinTech industry (you’ll have to because in some cases, the profit from your investment depends on it). It shows that this technology exists and you don’t only acknowledge it, but you see the opportunities that it could bring you – and you take advantage.

Basically, there is one main reason why you should be putting bitcoin on your investment portfolio:

Investors don’t care if bitcoin isn’t cash

At this point in time, everyone knows how lucrative bitcoin can be. Although not a lot of people are educated in the matter, most people around the world are aware of what bitcoin is. It’s been on mainstream news and has been the subject of debate for a few years now. Not everyone in the world accepts crypto but most of the world is open to the idea (actually most of the world doesn’t even know how to regulate it so they don’t even have any statement on what they feel about bitcoin).

At the end of the day, bitcoin is and always will be an opportunity to make money – but that’s not all we should limit it to. There are several real-life cases that bitcoin has developed over the years, especially when it comes to peer-to-peer trading. These real-life cases include earning a stable income, making payments much easier, and wealth preservation (if your fiat currency is experiencing inflation).

In essence, it gives the people a taste of what it’s like to be financially decentralized and there’s nothing wrong with putting that on your investment profile.

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