3 quick reasons why you should at least be familiar with Bitcoin in 2020 and beyond
Bitcoin familiarity is growing rapidly, especially with younger generations.
Part of it is the simple need of keeping up with the world and trying to understand what this new form of money is all about. Just a decade since its invention Bitcoin finds itself as a savings tool of many Millennials; much like gold for previous generations. Especially during the uncertain economic times, young people appear to be flocking to Bitcoin.
In a survey this year; Millennials have shown to prefer $1000 in Bitcoin over government bonds 53% of the time, over gold 32%, real estate 31% and stock 29%. This is a sizable increase from just 3 years ago; and considering how a currency only invented in 2009 is being preferred to long established investments, a remarkable one.
Bitcoin is being included and recommended in more financial portfolios.
Bitcoin is becoming a mainstream technology; its price ticker is now featured on most major financial websites.
It’s not just conjecture, a study from Yale, is even recommending a minimum 6% portfolio allocation of Bitcoin.
No longer just a small niche web currency; at a market cap of $250 billion, it’s becoming a mainstay with more and more hedge funds taking notice. Not only are sizable funds starting to pour hundreds of millions (and billions) into the market; there are even large funds made up entirely of cryptocurrency. An increasing number of recognizable companies like Fidelity are vying to enter the Bitcoin market.
Economic uncertainty is making the case for Bitcoin stronger.
The stock market in 2020 has been quite a roller coaster; from the lows of mid march, to the highs of August. While stimulus has appeared to pump the market, what lies beyond is anyone’s guess; though there are a few you should know about.
Economic stimulus and the rapid increase in the money supply is likely to have some secondary effects; namely inflation.
As inflation is going to decrease the spending power of each dollar; many onlookers will seek out to preserve value; one potential candidate is Bitcoin. Since Bitcoin’s maximum supply will only ever be 21 million, it’s generally seen as a deflationary currency; one where it becomes more difficult to acquire over time. Bitcoin is a rare case of an asset that has a verifiable fixed supply; something you can’t find even in Gold, where new reserves can be discovered.