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Do You Include Bitcoin In Your Investment Portfolio?

Friday, September 27, 2024

Primary Blog/Do You Include Bitcoin In Your Investment Portfolio?

Do You Include Bitcoin In Your Investment Portfolio?


In your investments, have you included any crypto investments?

Prior to 2024, you had to have a special account with a crypto exchange in order to invest in crypto.

In addition, you had to decide how to store and custody your crypto.  Would you self custody or trust the exchange?

Then, earlier this year, a number of spot Bitcoin ETFs were approved and began actively trading.

No longer did you need a special exchange and a separate account. You could trade with most of the major brokerage firms and invest in a spot Bitcoin ETF. No custody worries.

And recently, a spot Ethereum ETF was also approved.

So, now that crypto is more available, have you included any in your portfolio?

If you haven't done much research into Bitcoin, I would encourage you to do so.

It has been the best performing asset in 11 out of the last 14 years.

Will that continue?

I don't know, but it is worth the time to look into it. 

The background of Bitcoin is that there will only ever be 21 million bitcoin available.

Therefore, unlike other currencies or even gold, there will not be more printed, made, or mined.

So, it's value will not debase over time.

It's price has fluctuated on a four-year cycle.

Every four years there is the bitcoin halving. The halving cuts in half the reward the miners receive for mining Bitcoin.

The net effect of the halving is to reduce the amount of new Bitcoin becoming available by 50%. 

The halvings will continue until all 21 million bitcoin have been produced. 

Because the supply of new bitcoin is cut in half every four years, and because there is a cap on how many will ever be available, the price increases because of the law of supply and demand. 

So, if you invested $10,000 in Bitcoin on January 1, 2019, it would be worth $169,053.76 today. That's a profit of $159,053.76.

Have your other investments performed that well?

Yes, you would have seen your Bitcoin investment go through lots of volatility over that time frame, but if you believed in Bitcoin as a superior digital asset, you would not have been swayed by the volatility.

So, you would have kept it even through the "crashes."

And you would have been glad you did.

Now, I'm not saying you should put all your money into Bitcoin or Crypto.  You will have to determine your own investment percentage to put into these assets, if any.

It is at least worth considering.

If you have had a closed mind to Bitcoin and other crypto investments, I ask you to open your mind and do your own research.

Most of the current biggest Bitcoin advocates initially said, "No way. Not interested!"

But over time, to their credit, they slowly opened their minds and were willing to consider it.

I encourage you to do the same.

Listen to Michael Saylor, Raoul Pal, Samson Mow, Jack Mallers, Mark Yusko, or Anthony Pompliano. 

There are plenty of others, but these guys came into crypto with serious skepticism and questions. Yet, they learned, understood, saw the value and the future, and became huge proponents.

Do you want to reach financial independence?

Will Bitcoin or other crypto investments help you get there sooner?

Again, it is worth researching and considering!

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Hi, I'm Dr. Ben Holt

CEO, RTR Practice Advisors

These blog articles are designed to provide you helpful information and to stimulate your thinking.  We would also love your feedback!