So you might have checked out my crypto portfolio and realized that I don’t have any Bitcoin in my stash. But guys don’t be disheartened or worried, I need to tell you that no matter what my crypto portfolio is, Bitcoin is still relevant in the market. The main reason why I am not holding BTC is because I got burnt when I initially started trading. Yes all nothing but FOMO and FUD. I will move back investing into BTC again in the near future.
For those who think that BTC is no longer than important in the Crypto markets anymore, you should reconsider your stance. Why is it still very much relevant? Well here are some of my opinions of why it is still a very important asset to hold on to.
- The name. The brand! Bitcoin is Crypto. Yes for most layman out there, Bitcoin is the entire Crypto market. Not everyone knows about ETH or ADA or DOGE but nearly everyone who have picked up a newspaper or magazine lately will know about Bitcoin (BTC). There are tons of articles on the mainstream media about Bitcoin and how many have made millions out of trading in Bitcoin. It is just that famous. Sure altcoins are indeed gaining popularity but in my opinion, it will take a very long time before the layman would know that much about altcoins. The name alone is the selling point. And if Bitcoin falls, investors’ confidence in the entire cryptomarket falls as well. Just imagine what will happen to the markets if Bitcoin truly collapses.
- It is simple to understand. Yes one of the reasons why BTC is so popular among investors is because it is very easy to understand. Just imagine you going to your board of directors and trying to explain to those suits about DApps and Smart Contracts and Non-Fungible Tokens and what-not. It would probably leave them even more confused than before. The concept of Bitcoin is just much simpler – it is a store of value and a medium of exchange with demand and supply. This is very straight forward. Surely even the most ignorant investor out there would understand these terms. Just like gold. That is what makes Bitcoin so attractive for investors – they just want to know whether their investments will go up in value and not the nitty gritty “techno” stuff.
- It is secure. This cryptocurrency has been around since like 2009 or so. It has stood the test of time and as of yet no one has managed to successfully attack the Bitcoin network. Yes the code might be old and doesn’t get much upgrades but investors are all looking for something that has been proven to be secure. Long term investors don’t want their investment to suddenly go up in smoke one fine day. If you ask me if I would rather put my money on something that has been proven time and again and not something that might look cool on the outside but have no track record. Especially if you are planning to hold on for the long term.
- Institutional interest. “Whales” or “Investment Houses” or “Telsa” or whatever. A lot of the big boys are committed to holding on to Bitcoin in their own portfolios. There is no doubt about that. And seeing how much these institutions have at their disposal, I am quite certain that Bitcoin will remain very important in the Cryptomarket. They won’t want their own investments to lose value in the long run right? Even Elon Musk might get some heat if he suddenly go and sell off his company’s entire holding of Bitcoin. Yes he did threaten to do that at some point but he actually didn’t follow through with his threat. Probably get into trouble with his own investors if he did.
- The main gauge. If Bitcoin falls hard, almost the entire cryptomarket falls as well. That is true for almost all scenarios I have seen. So how is Bitcoin not relevant in the market anymore? If Bitcoin falls, all the panicking investors will start selling their altcoins as well. However if you see the cryptomarkets tumble, you will see Bitcoin “dominance” start to increase as investors start putting their funds back into Bitcoin (mostly because they feel it is still a safe haven) from the sale of their altcoins.
I honestly don’t see Bitcoin going away any time soon. It is here to stay for the foreseeable future. And that is actually good for us in the long run.
And yes I am no financial advisor. This post is for educational and informational purposes only.
4 replies on “Bitcoin is still relevant”
[…] And it is good for Bitcoin and other proof of work cryptocurrencies if the majority of the hash rate is not located in one country. Who knows what a government might do if they could just take control of Cryptocurrencies. A successful 51% attack on a blockchain network means the end of that particular Cryptocurrency and spells disaster for the rest. Especially if the cryptocurrency in question is a very popular one like Bitcoin or even something lesser known like Litecoin. The trust in cryptocurrencies would be severely eroded and might never recover. Crypto mining moving out of China might just be a blessing in disguise for the whole industry. Sure, there will be mistakes and uncertainty in the transition period but in the end, I think it is a good thing. We just have to hang on (for dear life). Read to my article on why I still think Bitcoin is relevant. […]
[…] Here is a post which I have written on why I think Bitcoin is still relevant. […]
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[…] Bitcoin and Bitcoin has always been very important in the crypto market. You can read my old posts here and here. The simple reason why I did not get into investing in BTC is because when I first started […]