If you had invested in Bitcoin in 2009, your investment would be up 10,000 times. Crazy as that sounds, it is a reality, and the world has seen a wave of crypto-millionaires and investors come up, much like Brock Pierce, who bought in at the right time. As fate would have it, his investments soared, and now, he is one of the world’s top futurists, entrepreneurs, and impact investors.
It’s possible you wish to join the bandwagon, but you don’t have sufficient reasons. Following a survey by GoBankingRates, some 1,037 Americans said they invest because of diversifying portfolios, making quick fortunes, storing value in the long term, and freedom of transaction. Now, read till the end to get more details on why you should add crypto to your balance sheets.
Because virtually all investments have a risk element, it is safer when you don’t put your eggs in one basket. So, if you’re heavily invested in one asset, say stocks, crypto can be your way to diversify your portfolio. Because of the enthusiasm around the rise and exponential growth in digital assets, you have a greater chance of bumping up your investment if you include crypto.
Making Quick Fortunes
Established legacy investors will tell you that most cryptocurrencies are high-risk assets, and frankly, they are. But, it is those risky assets that some people buy and become rich in about two months, just like Glauber Contessoto, the DogeCoin millionaire.
While that may not be everyone’s fortune, investing in high-risk crypto assets could make a quick buck. However, let the potential gains not allure you because you could also lose your investment. That’s because Bitcoin, often seen as low-risk, has lost over 50% of its value this year.
Storing Value in the Long Term
Although Bitcoin has been quite unstable in price, different industry players believe it is the perfect replacement for gold as a store of value and a hedge against inflation. With the rising cost of living, you’d be happy to know that Bitcoin and other cryptocurrencies can help preserve your purchasing power. That way, you won’t take a huge hit when those inflation numbers keep increasing every month as they do now.
Freedom of Transaction
Apart from the allure of monetary gains, Bitcoin gives you freedom of transaction, something that most traditional banks do. The idea that Bitcoin and other crypto are censorship-resistant means you can move money without having to notify the authorities. For that reason, crypto enthusiasts are pumping money into crypto projects to build on the technology and move the entire world close to real financial freedom.
Without a doubt, Bitcoin and other cryptocurrencies are worth considering investing into. They’ll open you up to new investment avenues, and you’ll learn about blockchain, the technology that powers most cryptocurrencies. Remember that crypto is a high-risk investment, and you should only invest as much as you are willing to lose.