Financial experts encourage individual investors to engage in cryptocurrency ownership following the latest move of influential companies like Square and Tesla. In late February, Square took a chunk of its balance sheet and invested it in Bitcoin. The digital payments firm that Twitter founder Jack Dorsey owns availed itself of $170 million worth of the cryptocurrency.
Furthermore, Tesla purchased Bitcoin amounting to $1.5 billion in the same month. Elon Musk’s car company is an S&P 500 member. It is also among the most valuable, publicly-traded enterprises in the United States. With these latest developments in the business world involving Bitcoin, retail investors are getting persuaded to join the cryptocurrency investing bandwagon.
This news is based on the highly educational report by US News Money published this week. We find it worth reading because we agree that today’s investors should not downplay cryptocurrency ownership. After all, we believe that this promising activity will soon prevail and be a success.
According to the report posted online by US News Money, a news outlet focused on delivering the latest in finance, business, and the economy, the following three reasons make cryptocurrency ownership a must-do in this era:
1. There is an on-going, gradual mainstream adoption of “blue chip” virtual currencies.
Besides Tesla and Square, other well-known establishments today are purchasing cryptocurrencies like Ether and Bitcoin in bulk. The CME Group started to offer Ether futures merely last month.
We can recall that in late 2017, the derivatives giant commenced offering Bitcoin futures. Meanwhile, Coinbase is set to conduct its initial public offering or IPO. The valuation of the leading cryptocurrency exchange is in the neighborhood of $100 billion.
2. Gold as an investment asset is increasingly becoming less dependable.
In 2021, the precious metal is down year-to-date, despite the rising asset classes across the rest of the market and the fledgling $1.9-trillion stimulus package on the way. Plus, gold is now rendered as an old-fashioned store of value once coveted by humanity worldwide.
On the other hand, Daniel Polotsky affirmed that Bitcoin and blockchain technology would exist for a long time. He said that his belief is founded on the fact that blockchain technology does not have a single point of failure for as long as people keep a record and maintain consensus.
3. Cryptocurrency ownership is a way to safeguard oneself against governments’ failures.
Golem Network’s María Paula Fernandez said that investing in Ethereum and Bitcoin are natural techniques to minimize the trust layer in governments and traditional institutions. The board of directors’ advisor in the decentralized cloud computing network affirmed that governments have failed to safeguard the people from the conventional financial systems’ fragility.
Moreover, Fernandez cited that owning Bitcoin and Ethereum are worthwhile as they do not require central authorities to confirm, make, or administer them. We laud Square and Tesla highly because they have realized the value of including Bitcoin in their investment portfolio lately. These highly innovative and prosperous enterprises are certainly acting appropriately.
We highly discourage today’s investors from refusing to acknowledge the new investing landscape’s rise, which greatly involves cryptocurrencies. Additionally, we want them to adapt to this new reality and engage in cryptocurrency ownership. We are certain that if individual shareholders realize the profitability of Tesla and Square’s move, they will also benefit from transforming their investment portfolios into more robust ones via cryptocurrency ownership.