Traditional investors still struggle to understand Bitcoin. Although stocks are doing fantastic at the moment, the Bitcoin price still performed many times better.
While Bitcoin achieved a return of more than 60% in 2024, the Nasdaq (12.15%) and the S&P 500 (11.24%) had to make do with at least 5x less. Aren’t these continuous Bitcoin price explosions a good reason for investors to convert at least 1-2% of their portfolio to Bitcoin?
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The investment case for Bitcoin
What many traditional investors do not understand is how special it is to have an asset with absolute scarcity. Bitcoin has a maximum of 21 million units and after that it’s done.
Never before has the world seen an asset with absolute scarcity, which you can also send from Amsterdam to Japan or New York within 10 minutes. Bitcoin can move around the world at the speed of the internet and is therefore significantly better than gold.
What makes this special is that gold currently has a market cap that is at least 10x larger than that of Bitcoin. If Bitcoin and gold are on par, this would result in a Bitcoin price of $785,825.
These are numbers that may sound unbelievable now, but in theory Bitcoin is an improved version of gold on all fronts.
- You can send it to the other side of the world in 10 minutes and that is impossible with gold.
- You can store it cheaply, while gold requires a physical location.
- You can send it cheaply, while gold requires expensive transport.
- You can verify it cheaply and quickly, while that is very difficult for gold.
In other words: Bitcoin at least has the potential to replace/equal gold as a Store of Value. That alone gives Bitcoin gigantic price potential, which convinces more and more investors to start saving in the digital currency.
Listed companies choose Bitcoin
In addition, we are currently seeing more and more listed companies opting for Bitcoin as their primary savings method.
That trend started in August 2020 with Michael Saylor’s MicroStrategy, which has since collected more than 210,000 Bitcoin (1% of the supply). Tesla, Block and several other major parties have now also been added.
The Japanese Metaplanet has also recently started saving in Bitcoin. Yesterday they bought ¥250 million worth of Bitcoin from the market.
Yesterday, the American Semler also added to this list. They bought $40 million worth of Bitcoin and began their adventure in the world of digital money.
The special thing about Semler is that it is a company that does not directly have anything to do with Bitcoin. Semler is in the medical world.
Step by step, we see more and more individuals, companies and countries opting for a Bitcoin standard. The revolution seems to be gaining momentum in this way. Are you already saving in Bitcoin?
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Source: https://newsbit.nl/bitcoin-stijgt-in-2024-5x-harder-dan-sp-500-en-nasdaq/
