Video

Three reasons to Hold Bitcoin | Revolution, Value, Risk

Investing - April 21, 2021

Video Overview

Bitcoin can be held for several reasons. Whether you’re a crypto trader, an individual investor, a financial advisor, or a company. Everyone has different reasons for holding. In this video, we break down the top-3 reasons to hold Bitcoin.

Bitcoin Early adopters

The first is the ‘Bitcoin Revolution.’ These are the early adopters. The ones who buy Bitcoin for what it was created, which is a permissionless, universal, decentralized currency. These people hold, or hodl (hold on to dear life) onto the crypto as a medium of exchange. This means they use cryptos for transactions across the world.

Macro hedge

Next, we have the macro investors. These investors buy Bitcoin because they see it as a ‘store of value.’ This means they see it as an asset that can retain its value over time. Since Bitcoin has a limited, (21 million) decreasing and verifable supply, the store of value argument holds strong. Especially when the cryptocurrency is valued against fiat currencies that have an unlimited supply. 

Micro risk

Lastly, we have the micro investors. These investors simply want to buy BTC as a means to diversify their assets. They dedicate 3-5% of their portfolio to BTC and maybe even other cryptocurrencies. These investors simply look at the crypto as a hedge for their larger portfolio, They trade and invest in the crypto’s volatility and rebalance their portfolios every few months. This could be through a Bitcoin ETF, on a crypto exchange, or a hard wallet.

These are the three reasons to hold Bitcoin. You could hold them for a single reason, a combination of all three. But know what your reason is. This will give you perspective, prevent you from deviating off the path, and know when to sell, if at all. 

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