Why Bitcoin is a MUST Have in Your Portfolio
Bitcoin (BTC-USD) soared to nearly $23,000 USD this December, up from $7000 USD last year. The recent ATH marks will likely drive increased volatility due to investors selling off their positions to realize gains. These fluctuations can be partially attributed to market speculation and the growing influx of investors that have a vested interest in the direction Bitcoin prices trend.
Additionally, the recent $100 million investment in Bitcoin from Massachusetts based mutual life insurance firm, Massmutual, among other large institutional adopters, could signal potential widespread corporate adoption in the near-future by insurance firms and pensions funds.
With the Bitcoin space recently being injected with enhanced growth potential, ProBit is offering a BTC subscription extension. Starting on January 27, ProBit is giving users another opportunity to claim BTC at 50% off. This is an ideal entry point for users to short or long BTC.
More than just a Store-of-Value
Potential investors in Bitcoin and other cryptocurrencies may overemphasize volatility and prospective value while overlooking its core value propositions. Similar to stocks, no one knows what the share price will be six months or a year from now, but the logic surrounding investing in a stock is sound, as it inherently produces value. Companies create value by developing services or products consumers want or need.
Likewise, cryptocurrencies have their own unique qualities that also fulfil market needs. Bitcoin and other leading decentralized alternatives to fiat such as Ripple or Ethereum have the potential to streamline and improve the current financial system as blockchain technology enables transactions to be completed instantly and reliably no matter where you are located.
Despite the stock market generating steady growth for investors over the last two decades, the economic system it was founded upon has started to expose its shaky foundations. Levels of debt historically reserved for wartime efforts have quickly become the norm, with countries including the US surpassing 100% debt/GDP ratio.
If the US and other world governments continue to run consistent budget deficits, this ratio will only balloon further. Furthermore, with the US debt surging past historical highs, the only outs are inflation or default. Considering the US Treasury Department can print as much money as they please and have recently publicly announced they will happily tolerate higher than normal levels of inflation, the latter is the more probable outcome.
Bitcoin can act as a “hedge” against such inflation as it is naturally deflationary due to limited coins in circulation. Extremists may prophesize that higher levels of inflation could be the tipping point to a total economic collapse, leading to accelerated corporate adoption of cryptocurrencies and its utilization as a means of exchange, but I wouldn’t hold your breath.
Bitcoin is Here to Stay
Bitcoin serves to remediate unique situations of geopolitical risk, enables instantaneous and secure transactions worldwide, and holds deflationary qualities enabling it to act as a hedge against inflation. While the digital asset has produced countless millionaires it will be nothing short of a monumental task for altcoins in the present day to experience such exponential gains.
Bitcoin’s recent institutional adoption could signal potential future growth and corporate integration. The Grayscale Bitcoin Trust (GBTC) is a popular investment avenue for large firms and has seen inflows of nearly $2 billion since November, compared to an outflow of $7 billion for ETFs. Cryptocurrencies have garnered enough attention to steal some thunder from some of the most foundational investment commodities in the financial world.
Despite the price of a single Bitcoin being out of reach for most investors, ProBit Exchange’s upcoming BTC event only requires a minimum of 10 USDT worth of BTC and a sufficient amount of its native token PROB to participate.
Start building your 2021 crypto portfolio on a solid foundation with BTC at 50% off from January 27— February 2 then sit back and enjoy the bull run.
*The above is not investment advice.
