Early retirement is a luxury few can afford. The ordinary person needs a measure of planning or luck to have this option. After the past few months, it is evident that Bitcoin in your investment portfolio can help you retire early.
Crypto is growing in stature by the day. This asset class is showing maturity; some believed it would take decades to achieve. Its applications in finance, innovation, and online crypto gambling are catching on. For gambling, it saw significant gains during the Coronavirus shutdowns when physical casinos shut. Such is the power of digitization and crypto.
For retirement, people often search for opportunities that offer either stability or high return. Bonds are perhaps the best representative of the former school of thought.
For high returns, stocks, real estate, and index fund investments have long been investor favourites. Increasingly, Bitcoin is making a case as a viable retirement asset to add to a portfolio.
Let’s read on to know the benefits of having a Bitcoin Investment Portfolio:
Bitcoin Was the Best Performing Asset Last Decade
This statement would come as a surprise to many people. Bitcoin performed significantly better than other leading assets over the past ten years. It posted a return better than stocks, bonds, and leading commodities.
Volatility is a part of cryptocurrency. You may remember Bitcoin crashing a few times and think that its superiority to other assets is not factual. That may be true when one factors only short term cycles.
Since 2011, Bitcoin has an aggregated annualized return of more than 200 per cent. This return is significantly better than returns for equity markets. A person who put less than $10 into Bitcoin in 2010 has hundreds of thousands worth of Bitcoin today. Such is the appreciation of this asset over the long term.
Understandably, this was an emerging asset class, and some would predict that this trend will not replicate. However, Bitcoin did that without institutional support and little government involvement.
This new decade has begun with Bitcoin gaining institutional and mainstream legitimacy. It would be short-sighted to put a ceiling on prices. Events in the first two months of 2021 alone show the possibilities.
Retail investors are also joining the fray in droves. The effect of a large investor like Tesla is fantastic. However, it is the sheer power of retail investors that took Bitcoin through its first ten years. Bitcoin is getting even more popular with the current rally. Even greater numbers of retail investors will likely begin trading Bitcoin.
Affiliate sectors like Bitcoin gambling games rely on these small-scale users. They provide dynamism and numbers for respective platforms. The best crypto games will continue to flourish amid this rally. Having the opportunity to wager Bitcoin on a platform like BC Game is vital.
Considering Bitcoin as A Retirement Asset
Bitcoin has come full circle. Its early years as a fringe asset are a bygone era. Institutional investors are not scrambling for this asset in vain. It has credibility and value.
Creating a retirement portfolio is incredibly personal. If Bitcoin fits your overall goals and risk profile, it is a genuine candidate. Bitcoin has the edge of a long-term return over traditional equities. This promise of fantastic upside makes Bitcoin a useful asset for a portfolio.
The creation of a balanced portfolio is vital. If you have some money invested in index funds and bonds, crypto fits into the plan. It can generate more return than the other momentarily. Notably, it could also have occasional crashes that can wipe short term gains.
Nonetheless, Bitcoin investment promises bigger returns. People who had significant Bitcoin before the current market rally became instant millionaires. There is no doubt that Bitcoin can allow you the luxury of early retirement in one rally.
Bitcoin also has solid fundamentals. Its fixed supply of 21 million means that it has natural scarcity. Most other cryptocurrencies have billions in circulation. The relatively low amount in circulation has stopped Bitcoin from being an efficient medium of exchange. Instead, it has become an excellent store of value.
Therefore, Bitcoin has earned comparisons to digital gold. Unlike gold, it does not present logistical challenges in storage. Bitcoin is outpacing gold to become the favourite store of value option. Gold has built its reputation over millennia. Bitcoin will likely gain more stability as its store of value reputation becomes more entrenched.
It is time to stop feeling sorry for yourself for not getting on the crypto train early. The best time to get into crypto was ten years ago. However, the next best time is now. You could wait for another ten years then feel sorry about yourself again.
Bitcoin does not make for a smooth ride. This fact makes it an excellent store of value assets. Over the long term, it shows consistent appreciation with rallies outweighing occasional crashes. Accordingly, Bitcoin fits into the mould of a retirement asset.