3. Why to Own and Invest in Bitcoin, Alt Coins, and Cryptocurrencies?
First, let’s define Bitcoin and Alts Coins.
Bitcoin: Bitcoin is the oldest and best-known cryptocurrency. In the world of digital money, bitcoin is the equivalent of a reserve currency. It also serves as the “Index” for the growing Crypto Ecosystem since it is used to acquire and trade nearly all other Cryptocurrencies. By That, I mean the value of all other digital currencies are measured against Bitcoin in the same way that the value of all paper currency is measured against the U.S. dollar. Bitcoin’s “reserve” status means it deserves a home in your portfolio.
Alt Coins: An Altcoin is a name given to all the other cryptocurrencies besides Bitcoin. Some strive to improve upon the Bitcoin vision, while others have created projects trying to solve or improve problems utilizing blockchain technology.
Reasons to Invest Now!
The crypto world is a blossoming to be a real game-changer that could change the way we do things. As we speak, applications are being developed to disrupt the current status quo, for the better. The decentralization of cryptocurrencies democratizes traditional powers and empowers the masses. They allow you the freedom from dependence on financial institutions for transferring money that comes with an exorbitant fee. There are many coins,most notably Bitcoin, that allows users to transfer money to anyone , anywhere, anytime for a fraction of the fees and processing time. Not only that, having private wallets to store your coins gives you full control of your money. It’s like managing your own bank; you decide your own rules.
Big money and names are starting to flow into the space. That includes folks like Peter Theil, co-founder of PayPal and the first outside investor in Facebook. The banks are getting in on the game, too. JPMorgan Chase, Barclays, Citigroup, and Goldman Sachs are starting to create an institutional infrastructure to invest in Cryptocurrency. On top of that, many of the most powerful countries, including China, England, Russia,the Netherlands, and Canada are already involved and forming their versions of investment regulations around this asset class. It was recently reported that only %2 of the USA population currently owns any Bitcoin or Alt Coins; with %26 of the population having interest in the investment space. We are still very early in the evolution of this potential financial revolution. **Don’t find yourself on the outside looking in; saying if only… or what if….
This could very well be your opportunity to get involved in the next Amazon, Google, Facebook, or Netflix. With that in mind, this is still a very young investment space with high volatility; don’t invest more than you are willing to lose. Currently, I would see fit a 3% – 10% allocation of ones investment portfolio into Bitcoin and Cryptocurrencies. I am not your financial advisor and can not provide further portfolio discussion at this time.