Similar to our recent article in which we outlined seven reasons why equities belong in every portfolio, we are now doing the same for Bitcoin. In our opinion, the most important cryptocurrency belongs in every broadly diversified investment portfolio in order to build long-term and sustainable wealth.
1. Limited supply
In contrast to fiat currencies, shares and ETFs, but theoretically also commodities and real estate, Bitcoin cannot be multiplied at will. There is a maximum of around 21,000,000 Bitcoin, which are immutably stored in the system. Bitcoin is the most limited commodity on earth and is therefore rightly referred to as digital gold. This makes Bitcoin an excellent inflation hedge. As demand steadily increases, the available supply becomes smaller and smaller and the value increases continuously.
In fact, Bitcoin is one of the assets that has performed best in the last 10 years. Just recently, the cryptocurrency passed the magic mark of 100,000 US dollars – a threshold that also represents an important milestone for traditional investments.
2. Decentralization and resistance to censorship
The Bitcoin network functions independently of governments, banks or other centralized entities. Because everyone controls everyone else, Bitcoin cannot be banned, individual transactions rejected or participants excluded. No one will ever ask why a transaction was made or can stop it if it doesn’t fit. Due to the constant, mutual control and transparency of the blockchain, all blocks are unchangeable and cannot be manipulated. This ensures maximum security. Theoretically, anyone with a full node and/or a cost-efficient miner can participate in the network and ensure its continued existence.
3. Simple and fast transferability
Bitcoin is designed in such a way that a new block is written approximately every ten minutes, which contains the latest transaction list depending on the available storage space. The selection of transactions for a block depends on how much the sender is willing to pay. Those who pay higher transaction fees are given priority for processing. To send a Bitcoin, or rather a few Satoshis, all you need is the recipient’s address.
Alternatively, you can use the second layer and the Lightning network, which allows you to send transactions in seconds and at almost no cost. Sending and receiving Bitcoin is therefore quick and easy – especially if you want to transfer money to other countries and accounts. You are no longer dependent on a large number of banks that make transactions inefficient.
4. High liquidity
Like shares and ETFs, trading on exchanges such as Crypto.com* is possible at any time. And really at any time, because Bitcoin knows no trading hours – pricing takes place at any time of the day or night and does not take place at weekends. Several million euros are traded every day. The recently introduced spot ETFs, some of which allocate several thousand Bitcoin worth billions, have shown that this works well.
5. Small investments possible
Bitcoin is theoretically divisible any number of times, which makes it more manageable as a digital asset than fiat currencies or even gold. One Bitcoin can be divided into 100 million Satoshis. This makes it easy to invest small amounts. You can buy shares of Bitcoin for just a few euro cents. With the Strike.me app, this is as easy as with PayPal. Transactions are child’s play, savings plans can be executed hourly, daily, weekly or monthly and carried out directly after a transfer. The conditions are unbeatable!
6. Diversification effect
Bitcoin often has a low correlation to traditional investments such as shares or gold and is therefore ideal for diversification. This makes the portfolio more stable. In general, the more different assets your own investment portfolio contains, the lower the fluctuations, which in the long term, with the help of regular savings plans, only smooth out the average returns. Large investment and pension funds recommend an allocation of at least 1%; we would set this threshold much higher, or have already done so. Due to the recent strong price increases, Bitcoin is one of our largest investments.
7. High potential for appreciation
Despite the high volatility, which will decrease in the long term with increasing acceptance and greater market capitalization, Bitcoin has a high profit potential. The last ten years have already shown a strong performance. It is unlikely that this will slow down. On the contrary: spot ETFs have recently generated high demand and are being included in more and more asset management funds, further increasing demand while supply remains stable. If everyone adds just 1%, the price could really explode. The limited supply is contributing to this, with only around four million Bitcoin still tradable on the exchanges. In addition, the USA will build up a strategic crypto reserve under Donald Trump and will have to buy a certain base stock for this. Presumably, other countries will then follow suit. So it is still very early days for Bitcoin.
Conclusion
Bitcoin has a multitude of advantages that can only be explained here in a very fragmentary way – the rabbit hole is huge. This makes it an indispensable component of any portfolio. It enables long-term growth, diversifies risk, offers high liquidity and protects against inflation. Whether you are an experienced investor or a complete beginner: Bitcoin should always have a place in your portfolio! With a well-thought-out investment strategy and a long-term perspective, anyone can benefit from the advantages and build up a sustainable fortune!
- Der Bitcoin-Standard Die dezentrale Alternative zum Zentralbanken
- Produkttyp ABIS BOOK
- Sprache Englisch
- Ammous, Saifedean (Author)
Letzte Aktualisierung am 2025-04-17 at 05:13 / Affiliate Links / Bilder von der Amazon Product Advertising API
