5 Reasons to Hold BITCOIN in Your Portfolio | Why Hold Crypto?

*** IT'S NOT TOO LATE to buy Bitcoin ***
Here are 5 reasons Bitcoin and crypto are the most attractive assets.
1) Bitcoin is the best performing asset EVER.
2) Crypto is early on the adoption curve, with huge upside.
3) Bitcoin has a low correlation to most assets, making it great for diversification.
4) Bitcoin is extremely liquid, crypto never sleeps.
5) Crypto is driving much needed financial innovation.
LET’S GET INTO IT!

Timestamps:
0:00 Intro
0:25 Performance
1:40 Adoption
2:31 Uncorrelated
3:22 Liquidity
4:05 Innovation
4:52 Conclusion

Reason #1: Bitcoin is the Best Performing Asset… EVER
Bitcoin has outperformed every asset ever held for greater than three years. In fact, it's up an incredible 24,000% in only 10 years. To put that into perspective, if you had invested just $1000 10 years ago, it would be worth over $240,000 today! This kind of performance is unmatched by any other asset class, including stocks, bonds, gold, tulips, or real estate. For example, the S&P 500 index (stocks) have an average annual return of 10% for the last 10 years. In contrast, Bitcoin's annualized return over the same period is an astonishing 203%... that’s per year! One of the reasons for this incredible performance is that Bitcoin is a deflationary asset, meaning that its supply coming onto the market is decreasing, is capped at 21 million, and it becomes more scarce over time. The second most powerful narrative driving price is that Bitcoin is not controlled by any central party that can change it to its whims or for control. Both principles stoke demand from a game theoretic perspective.

Reason #2: Crypto is Still in the Early Stages of Adoption
Despite its incredible growth over the last decade, crypto is still in the early stages of adoption. According to a survey conducted by the Global Blockchain Business Council, only 5% of Americans own Bitcoin.
This means that there is still a huge potential for growth, and we're just scratching the surface of what crypto can do, and how it can grow. As more and more people start to adopt cryptocurrencies into their daily lives, we can expect to see even more significant growth of crypto, like a fly wheel. For example, we're starting to see major companies like Tesla, Fidelity, and MicroStrategy adding Bitcoin to their balance sheets. This is a clear sign that cryptocurrencies are becoming more mainstream and accepted by traditional finance and companies. Once the regulators decide how to treat crypto, their regulatory certainty will open up the flood gates to ubiquitous adoption.

Reason #3: Crypto is a Diversification Tool
One of the key benefits of investing in crypto is that it has a low correlation to traditional assets, making it an excellent tool for diversification. This means that when other assets are underperforming, cryptocurrencies can help to mitigate your risk and provide overall stability to your portfolio. Bitcoin correlation changes over time, and it recently decoupled from stocks after breaking its tight coupling through 2022. Sometimes Bitcoin benefits from being seen as a hedge against inflation (like gold), and sometimes it benefits from being seen as a risk-on asset with higher Beta than stocks or bonds. Averaged over a year, Bitcoin has a very low or negative correlation to stocks and bonds. It provides Alpha while decreasing overall risk.

Reason #4: Crypto is Extremely Liquid
Bitcoin is like Vegas! Stocks only trade 6 ½ hours a day, not on the weekend or holidays. Well, crypto never sleeps. Crypto is open for trade 24/7. This means that you can buy and sell crypto any time, day or night, whenever the trade is right, whenever you need liquidity. Bitcoin trading is open 5 times more hours than Apple or Boeing stock. In addition, the decentralized nature of the crypto market means that you don’t need intermediaries like banks or brokers that slow down transactions, which can take days to settle trades. This makes it easy to move money in and out of the market at a time and place of your choosing, without delay.

Reason #5: Crypto is Driving Financial Innovation
Finally, one of the most exciting things about crypto is that it's driving financial innovation and creating a brand-new sector of the economy. Bitcoin created sovereign money, like gold, where a central party can’t control the supply or change the parameters to meet their goals. The rise of decentralized finance (DeFi) is enabling people to access financial services like loans, savings accounts, and insurance, without the need for a traditional bank or intermediary. Crypto enables people to send money across borders quickly and cheaply, without the need for expensive intermediaries like Western Union or PayPal. This WILL revolutionize the remittance, which is worth trillions of dollars.

The future is bright in crypto. It’s exciting and a rapidly evolving market. Whether you're a seasoned investor or just curious, it's worth taking a closer look at what Bitcoin and crypto have to offer.

Видео 5 Reasons to Hold BITCOIN in Your Portfolio | Why Hold Crypto? канала Matthew Voke