Should every portfolio have some Bitcoin (BTC-USD) in it? This may be impossible for specific accounts, mainly if they’re restricted retirement accounts. Nevertheless, Bitcoin has specific anti-inflationary properties, much like gold does. Consequently, every investor should consider owning some Bitcoin if it’s feasible.
Unless you’re a trader or a casual speculator, the best strategy for Bitcoin is to HODL or “Hold On for Dear Life.” As more retail traders and even banking behemoths take cryptocurrency seriously, the bull case for Bitcoin will only grow stronger.
Beat the Crypto Winter Blues With Bitcoin
This winter has been chilly, but there’s been a warm feeling lately for Bitcoin’s loyal investors. That’s because the crypto winter – not the season of the year, but the cryptocurrency bear market – could be ending now.
Sure, there have been challenging times, like when BTC-USD fell from around $69,000 in 2021 to $17,000 in 2022. Yet, during those ice-cold crypto winters that are bound to happen every few years, I invite you to consider a quote from cryptocurrency expert Alexis Ohanian.
I really like what Ohanian wrote in a recent X (formerly known as Twitter) posting. He stated, “I’ve invested through every ‘crypto winter,’ and they still don’t faze me. Winter clears out the tourists and grifters, it happens in every industry.”
So, what kind of Bitcoin investor will you be – a tourist or a true believer? BTC-USD recently recovered to the $37,000 level and has been getting a lot of coverage in the financial press. But will you get scared and sell for a loss if it pulls back?
Ohanian also writes, “Gold has value because we believe it does.” The same thing could be said about Bitcoin. If you’re disillusioned with fiat currencies, especially during this time of persistent inflation, consider HODL-ing some so-called “digital gold.”
Considering the Impact of a Spot Bitcoin ETF
Earlier, I alluded to a banking behemoth that’s taking cryptocurrency seriously. As you might have guessed, I was referring to BlackRock (NYSE:BLK), the financial giant that might be the first entity to launch a spot Bitcoin exchange-traded fund (ETF).
Grayscale is another firm that may be the first to introduce a spot Bitcoin ETF. It’s difficult to predict which firm will be first or when it will happen.
After all, Securities and Exchange Commission (SEC) Chairman Gary Gensler isn’t the world’s biggest Bitcoin fan, so getting a spot approved by Bitcoin ETF could take a while.
Still, the SEC should relent soon, maybe in 2024. ARK Invest CEO Cathie Wood observed that “something has changed,” especially since the SEC responded with questions to ARK Invest’s spot Bitcoin ETF application. Previously, the SEC probably would have rejected Wood’s application outright without asking any questions.
That sounds like progress to me, even if it’s gradual. For Bitcoin believers, it’s all about the baby steps. So, relax and hold that digital gold; the crypto winter could be over before you know it.
Every Investor Ought to Have Some Bitcoin
You don’t have to be a Bitcoin zealot to hold some of it in your portfolio. As the BTC-USD heads back toward $69,000, you’ll probably be tempted to buy some – but why not own some now, while it’s still relatively cheap?
Just like gold, Bitcoin has anti-inflationary qualities and is meant to be held for years, not months. If there are dips and bear markets along the way, just remember that you’re a HODL-er, not a tourist.
Additionally, don’t worry too much about the timing of a spot Bitcoin ETF. Just hang on for the ride, as Bitcoin is truly the gold standard of non-fiat currencies.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.