Summary:
Bitcoin has surged 122% in 2024, outperforming the stock market.
Bitcoin's market cap now stands at $1.9 trillion, highlighting its legitimacy.
The approval of spot Bitcoin ETFs has opened the door for larger investments.
Bitcoin's digital nature makes it portable and transactable across borders.
Its scarcity is ensured with a maximum supply of only 21 million coins.
Bitcoin has had an incredible year, capturing the attention of both individual and institutional investors, and even the incoming president. The cryptocurrency has surged 122% in 2024, outperforming the stock market. As we look towards 2025, many are considering adding this digital asset to their portfolios, especially as it currently trades 12% off its peak from mid-December. Here are three compelling reasons why Bitcoin is a must-buy for long-term investors.
1. It's Legitimate
Bitcoin's market cap now sits at an impressive $1.9 trillion, establishing itself as a legitimate financial asset. This growth is a stark contrast to its early days in 2009 when it was dismissed as mere internet money. The approval of spot Bitcoin ETFs by the Securities and Exchange Commission in January 2024 has further legitimized Bitcoin, allowing larger pools of capital to enter the market. Notably, President-elect Donald Trump expressed his support for Bitcoin, suggesting the creation of a strategic Bitcoin reserve in the U.S.
2. It's Digital
Bitcoin's digital nature makes it an attractive addition to any portfolio. As a decentralized database and communication protocol, it transcends borders and is portable, divisible, and transactable. The world is becoming increasingly digital, and Bitcoin stands to benefit from this trend. As Block CEO Jack Dorsey mentioned, the internet is poised to have a native currency, and Bitcoin is well-positioned to fulfill that role.
3. It's Scarce
The scarcity of Bitcoin is perhaps its most compelling feature. With a maximum supply of only 21 million coins, Bitcoin's halving schedule and inflation rate ensure that it remains a limited asset. This scarcity contrasts sharply with the current monetary system, where excessive money printing and inflation are rampant. As global citizens witness the debasement of their fiat currencies, the appeal of owning a scarce asset like Bitcoin continues to grow.
Bitcoin's journey over the past 15 years has been remarkable. While future returns may not mirror past performance, the potential for game-changing returns remains. Long-term investors should seriously consider adding Bitcoin to their portfolios.
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