Why you should be holding crypto

As a seasoned investor with a background in traditional asset classes like stocks and bonds, I used to dismiss crypto as a fad, a joke even. I remember laughing at the audacity of those who dared to invest in this new, unproven digital currency. But the more I watched from the sidelines, the more I couldn’t ignore the undeniable fact that Bitcoin and other cryptocurrencies were not only surviving but thriving.

For those new to the world of cryptocurrencies, there’s a growing curiosity about this complex and dynamic market. Previously skeptical governments are starting to show interest, signaling a potential shift in perspective. But is investing in crypto right for you?

A new asset class to be laughed at

It’s possible that you’ve been putting money into the stock market for some time now, and you might own bonds and conventional investments. You might have chuckled to yourself back when cryptocurrencies first emerged a few years ago, thinking them a bit frivolous.

A notable assembly of financial institution heads spoke out against crypto, delivering criticisms instead of praise. In stark contrast, they denounced Bitcoin and similar digital currencies as deceitful schemes, warning that they primarily serve the interests of money launderers and those engaging in illicit activities.

Outperforming everything – in spite of headwinds

Despite the numerous cautions against it, including strict regulations from Chinese authorities, hostile attitudes from regulatory bodies, and burdensome laws, Bitcoin and some other advanced cryptocurrencies have managed to flourish.

In actuality, they have not only flourished but surpassed the returns of stocks, bonds, gold, and virtually every other investment category.

Is this a good time to invest?

Perhaps you’re pondering the thought that since this asset class has experienced such significant growth, it’s only a matter of time before it encounters the most substantial price correction? It’s true that a major price correction is inevitable for the crypto market.

Based on historical trends, the crypto bull market, which started about 20 months ago, typically lasts around 4 years. Therefore, it’s likely that a bear market will ensue towards the end of 2025.

But what about traditional investments?

For investors who prefer a more conservative approach and typically stick to the 60/40 mix of bonds and stocks, there’s still a chance to consider other investment opportunities. Cryptocurrencies could be an alternative option for them, but it’s essential to understand that this asset class comes with higher risks compared to traditional investments. It might be wise to consult with a financial advisor or conduct thorough research before dipping a toe in the crypto market.

In simpler terms, most people agree that this type of investment portfolio is no longer effective, with the exception of large asset managers like Vanguard.

According to macro economic analyst Raoul Pal, technology (AI) and crypto are currently the only asset classes managing to keep pace with central bank currency debasement and rising inflation.

Neil Howe’s “The Fourth Turning” argues that we have reached a pivotal moment in history, with significant shifts anticipated for the global financial system. Might Bitcoin and cryptocurrencies potentially bring about these transformations?

The figures don’t lie

Over the past 15 years, if you compared any asset to Bitcoin, you would discover that Bitcoin has outperformed them significantly, often showing exponential growth relative to these assets. For instance, gold, which is commonly referred to as “digital gold” due to Bitcoin’s similarities to it, has seen a decline of over 10,000% when measured against Bitcoin since 2014.

The data does not deceive. Bankers and government heads have limited power to dissuade the general public from investing in cryptocurrencies. Mainstream news outlets may write articles, potentially influenced by these parties, aimed at deterring people from purchasing Bitcoin.

In the end, cryptocurrencies, with Bitcoin leading the charge, offer a means to preserve financial autonomy from the detrimental effects of fiat currencies supported by governments. These currencies are being perpetually printed to cover debts and fund ongoing conflicts.

Currency in the bank

for how long can anyone realistically continue enduring this situation?

Do your own research – and soon

Expanding your financial resources, achieving financial independence, and gaining the power to conduct transactions with anyone globally without banks or governments impeding you are compelling motivations for investing in cryptocurrencies. Be cautious, though; don’t blindly trust online sources. Thoroughly investigate the content of this article as a matter of urgency – the security of your wealth and liberty relies on it.

2024-07-17 17:14