This is an editorial by Konstantin Rabin, finance and technology writer.
Bitcoin good, the greatest of all cryptocurrencies, is increasingly being used as a reliable store of value for those looking to move away from more established asset classes as it is continually proving itself to be a powerful hedge against inflation.
In fact, this is something I’ve been doing for quite some time, and in this article, I’ll explain why I allocate a share of my wealth to Bitcoin and how I see it as ideal for preserving my net worth.
Why allocate a share of your wealth to Bitcoin?
Despite the volatility and fear mongering that is prevalent when talking about bitcoin as a revolutionary investment tool, there is a lot to be said about why it is a valid competitor in this market. It should be noted that no worthwhile investor will tell you to put your life savings into cryptocurrency, but there are plenty of positive possibilities for those looking to generate long-term returns or preserve a portion of their wealth in this way.
Let me just list some of these advantages that make this investment in bitcoin worth researching in greater depth:
- An alternative store of value: Bitcoin is as good as it gets when looking for a store of value outside of third-party manipulation. Decentralization means that it circumvents many of the red tape and fees that come with leaving your money in the hands of financial institutions. As a result, it is not subject to the same inflationary pressures that are prevalent with companies operating in a government-controlled fiat currency system.
- Long-term growth potential: There is no doubt that the value of Bitcoin is very volatile in the short term, but its long-term trend has historically been rather bullish. an idea HODLing Here comes into play, as you’ll only be able to truly see the true value of your investment when you ignore the sudden surge and hang on for dear life.
- Diversification: Like I said before, investing in bitcoin doesn’t mean you dump all of your hard-earned eggs into the messy basket of cryptocurrencies, but you can provide some much-needed, future-oriented diversification to your investment portfolio. like Bitcoin’s price is becoming increasingly detached from the prices of traditional assetsLike stocks and bonds, adding some of these cryptocurrencies to your portfolio can help spread out the overall risk your old guard investments may face. In fact, what we’ve seen over the past few years is that bitcoin has become a new kind of semi-safe haven asset class that many investors flock to the moment investment vehicles and fiat currencies are under pressure.
- Accessibility: This one goes two ways. from direction Investing in Bitcoin just got easier, with many platforms and exchanges now offering a simple and secure way to buy and hold BTC; While at the same time, it has never been easier to liquidate this asset and get fiat money when needed. This scores a huge point on the stock, bond or real estate markets, which are forever plagued by liquidity issues; Especially in times of widespread financial instability.
In the long run, spending a portion of your income on BTC is unlikely to make you poor. On the flip side, not allocating anything to BTC can ruin your prosperity, especially in these uncertain times Banks can go bankrupt without warningAnd Inflation seems to be on the rise Many countries are seeing their paper currency converted into toilet paper.
Why am I not buying or mining BTC?
In the pursuit of bitcoin, there are always the obvious channels to access some form of cryptocurrency exchange or peer-to-peer market and exchange of fiat for BTC. While there is nothing wrong with this approach, and it may be the easiest and perhaps the only option for many people, it is, in my humble opinion, not the best way to get your coins to preserve wealth.
You could instead go the miner’s route and spend a big fortune buying all the equipment needed to try and get some BTC this way, but in this day and age with The average mining cost per coin is over $30,000 in many countriesYou will most likely end up with zero long before your first coin is mined.
So, what do I suggest? earn it.
Sure, not everyone can convince their boss to pay them in bitcoin, but these days, plenty of people have a side hustle that could easily be put to work creating some digital douche. Five years ago, offering your clients the ability to pay in cryptocurrency for your services was a non-existent concept, however Today, it’s a no-brainer. Currently, a large number of my clients, especially those in the online world, pay for services via cryptography. While most of them like to use stablecoins like USDT, you can easily flip it to BTC and keep stuffing your Bitcoin wallet.
One notable online activity that I participate in to accumulate some BTC is for people over 18 years of age only. No, I don’t mean OnlyFans. I do some work in and around the gambling industry and also enjoy some gambling myself from time to time, but I only gamble with bitcoin.
Bitcoin betting sites have been gaining momentum latelyThanks to its ability to protect privacy, it offers deals (such as bonuses, commissions, etc.) and general improvements over the annoying bureaucracy inherent in fiat currency betting sites. Obviously, I wouldn’t recommend gambling to anyone, but it’s something I enjoy occasionally, like when my favorite UFC fighter jumps in the octagon, because it adds a little excitement while watching fights, and the winnings obviously add to my BTC fund to keep my fortune.
Strategy to keep my fortune in BTC
You might be wondering why I’m so sick of bitcoin and not caring about the rest of the crypto stack. honestly Most tokens track the price of bitcoin like a donkey chasing a carrotI don’t usually diversify things or allocate a share of my crypto investments into other major coins and tokens. Don’t get me wrong, I think some cryptocurrencies are useful, but since bitcoin is what determines the value of many of the top dogs on the list, sticking with BTC as an investment currency makes sense. (For those keen to diversify into other crypto projects, I have a bit of advice; stay away from meme and sheetcoins.)
Now, let’s get to work. Here is my advice for preserving wealth via bitcoin based on my own strategy:
- The Plan: Whether you invest in fiat currency from working a day job or get paid directly in cryptocurrency via your own projects, make sure you have a well-defined goal. Decide on annual or even quarterly amounts that you would like to reach and do your best to achieve that.
- Don’t panic: always increase your BTC holdings and be ready to HODL until the kingdom comes along. Don’t pay too much attention to the fiat value and don’t panic selling just because you see some of those crazy price swings that Bitcoin is famous for. It’s all well and good to compare exchanges and cryptocurrencies, but don’t sit there focusing on where the bitcoin price is. Short-term dips are bound to come and go, but if you believe in bitcoin as much as I do, you can rest assured that your wealth is being preserved. Keep in mind that there is only 21 million BTC available at all. Because this is a limited offer The world population is approaching eight billionWith more people being added every day, the value of this asset is sure to increase over time as more governments and individuals take control of this new shift in financing. If a complete bankruptcy finally happens and bitcoin takes its place as the main currency, the average BTC per capita in the world will be around 0.0025, and you definitely want to be among the top 5% of its holders.
- Keep it safe: Bitcoin is digital, and hackers are always on the lookout for those who don’t keep an eye on their money. So, to keep my wealth safe, I keep all my bitcoin holdings in hardware wallets stashed in a safe place. There are plenty of good exchanges and hot wallets to choose from, but if you’re serious about preserving your wealth, keep it cold, and keep it offline.
Why you should not wait for diversification
Dedicating a portion of your wealth to Bitcoin can be an effective way to preserve it, and even increase it, but as the saying goes, “The best time to start is yesterday, the second best time is now.”
do not wait BTC to $50,000 Before you suddenly wake up and start buying. Make a plan today and start diversifying your portfolio in a future-proof asset class, so you know your wealth is safe, no matter how bad your government is.
This is a guest post by Konstantin Ryban. The opinions expressed are entirely their own and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.