Why You Have to Add Bitcoin to your Investment Portfolio

Could you and should you add Bitcoin into your investment portfolio? What are the best ways and strategies of Bitcoin investing you can use to make it profiting more, and losing less?

Whether you are investing in bitcoin, or still considering it, you have to be aware of the best investment options. Is it better to purchase bitcoin through an exchange, choose trust or ETF investing? Besides, as in any type of investment, you need to know about risks you will face and how to minimize them.

Young and Juicy

Despite the fact that Bitcoin is still a relatively young digital asset, investors giving 4% of their portfolios to Bitcoin usually benefit from more lucrative returns. According to coin Shares analyst James Butterfill, the growth of bitcoin's popularity has been induced by the financing of digital assets – a process that commodities went through in the early 2000s.

"Many attempts have been made to fit bitcoin into pre-existing frameworks of current asset classes, but due to its unique collection of similar yet often non-overlapping attributes, it never quite fits any established mold”.

“This leads us to the situation of bitcoin evolution, where it may have been one thing in the past, another thing now, and will be yet another thing in the future”, concluded Butterfill.

Bitcoin is a hedge against crisis

Bitcoin has helped millions of people in distressed countries, such as Venezuela and Zimbabwe to secure their wealth and even make transactions through bitcoin. For developed countries, such as the USA this may sound controversial since there are liquid capital markets and a good financial system. So why do we all need to consider investing in Bitcoin?

Many economists and financial market analysts believe that the stock market today has a very shaky fundamental system, although it has provided the world with a terrific rally over the last 20 years. It has now become normal for many western countries to surpass 100% debt/GDP ratio.

And the solutions are either default or inflation. But inflation is not the worst that could happen to our economics. The banks, the basis of the monetary system, could face a bigger crisis than in 2008.

Bitcoin will be a hedge against inflation, as it is naturally deflationary since the amount of currency that can be mined is limited. Bitcoin can function as means of exchange in case the financial system collapses. If it may sound too vague now, do not forget the time when banks closed their doors in Greece in 2008 and in the USA during the 1930s crisis.

To conclude, for today Bitcoin remains the most requested and useful cryptocurrency. If the whole world would switch to using cryptocurrency only, Bitcoin would remain the top one. Among other digital currencies that may have faster transactions, Bitcoin is the most secure.