Bitcoin is a financial asset that’s worth, including in your investment portfolio. Here is a short argument for why you should consider owning Bitcoin and how you can learn more before you get started.
Why should I learn more about Bitcoin?
If you didn’t know, Bitcoin was the best performing asset over the last ten years. Bitcoin returned astounding returns for the early adopters who helped bootstrap the software program on the internet like the cypherpunks and the Winklevoss twins. Over the next decade, Bitcoin is expected to grow as the technology matures, and more global users connect to the internet.
In the grand scheme of global finance and the revolution of internet money, we are still early in the days of cryptocurrencies. Many have predicted to date that Bitcoin will fail or that it’s a fraud. However, here we are in 2020 with Bitcoin’s total value in the hundreds of billions of US dollars, it’s clear that Bitcoin hasn’t died yet.
Digital currencies are thriving today in the United States and even more globally. In the United States, the government is flirting with the idea of a Digital US Dollar. Private sector projects are ripe for investment and interest as Facebook is leading the charge with Libra. At the same time, Google, Apple, and others find their way into digital money.
Several observers have suggested that Bitcoin should have at least 1% of an investment portfolio if you were even riskier and had 5% of your diversified investment portfolio in Bitcoin from 2015 to 2019 the portfolio would have doubled its performance.
How can I learn about Bitcoin myself?
That’s a great question! Here is a quick guide for how you can learn about Bitcoin from industry experts and some of my favorite resources.
Learn more about Bitcoin through these suggested references below
- Bitcoin Rap Battle by the LinkedIn founder and friends
- Bitcoin Information & References by an industry-leading engineer
- Crypto Cannon by a Silicon Valley Venture Capital company
- Ted Video by an author and professor
- Earn.com by a industry-leading company that will pay you crypto to learn
There’s a LOT to learn about Bitcoin. Before you get too far down the informational rabbit hole, I suggest first step back and make a plan for yourself.
What do I need to know to decide this is an excellent investment opportunity for me?
You could ask yourself; How much do I want to learn before I decide to make a test investment?
The suggested best practice is to put 1-3% of your total investment portfolio into Bitcoin or cryptocurrencies, which will serve as your alternative assets within your portfolio.
The generally accepted idea is only to invest as much as you’re willing to lose. Bitcoin is a highly volatile asset class that requires a 3 – 5+ year time horizon for investment return for most investors like myself. This means that we all must wear our emotional seat belts for a volatile ride that could result in losing money like this person if you have to sell your investments at the wrong time.
After learning a bit more about Bitcoin and making a plan for how much you’d like to start investing, you can get started.
The past doesn’t repeat itself, but it rhymes some say. If Bitcoin continues to grow and is as impactful as the internet is today, it’s arguably worth it to learn more and add owning some Bitcoin into your long term plans.