Pros and Cons in having major holdings in Bitcoins
In the last few days after the market started doing very well, I started having many questions in my mind. Mostly related to Bitcoin and whether I should be investing more in Bitcoin instead of other coins. There are both advantages as well as disadvantages to this approach. Of course, Bitcoin is the best investment in the crypto world and it is very unlikely that it would lose its value against any super duper coin that comes in the market. But at the same time, we have to also agree that there are definitely better projects than Bitcoin in the crypto world that deserve our investment.
Let's discuss the pros and cons of holding Bitcoin. The biggest question is if it should be our major holding or not. If it was not a good investment, it wouldn't be in the top traded cryptocurrency and also would have lost its value against other better projects out there. In a way, we can even say that there are so many better coins and projects with better use cases but people still are interested in purchasing only Bitcoin. We all know Silver is the next big metal but people are still interested in buying only Gold and the same happens with Bitcoin too.
Pros in having Bitcoin as our major holding
There is no doubt that Bitcoin should be decorating our portfolio. I recently learned that the major holding should always be in Bitcoin and other investments can follow. Being a part of the Hive community, for me most of my holdings are going to be only in Hive and I would start thinking about other investments only after I have sufficient Hive for the future.
As Bitcoin is the first popular cryptocurrency, there is a high chance that people would be interested to buy and trade Bitcoin. This way in no time the price of Bitcoin would skyrocket. We all know that the bull market happens in no time for no concrete reasons. When it happens, the first coin that would skyrocket is Bitcoin and that's one of the biggest reasons why we should be investing in Bitcoin.
Investing in Bitcoin is very good because it is scarce and only 21 million Bitcoins are available in the entire world and it cannot be more than that. Over the course of years, many Bitcoins would get lost and the overall number would keep coming down making it even more valuable.
Verbally it is very popular and whenever someone would like to explore the crypto world, they don't even think about investing in other cryptocurrencies, but they talk about investing in Bitcoin. It is very unlikely for people to have heard about Hive or Ethereum or Ripple which is equally great but people would have definitely heard about Bitcoin and many old people are also interested in purchasing Bitcoin with their hard-earned money to save something for their future generation.
Cons of having Bitcoin as our major holding
Today Bitcoin is definitely the superstar in the crypto world and everyone is purchasing it and trying to enter into this world. We cannot guarantee that this will be the case even in the future. As years pass, there will be more and more people who will come to know about cryptocurrencies and there can be a situation where they might get started with other cryptocurrencies like a popular altcoin and maybe Bitcoin might get less popular. We cannot rely on the market cap that it currently has.
If we have all our holdings in Bitcoin, one of the biggest things that we would be missing is diversification. We may not be able to diversify our holdings. Having a decent amount of Bitcoin is good but at the same time, we have to also understand the importance of investing in other alt coins that have proper use cases in the real world.
Today we have an acceptance of Bitcoin as an important coin even though there is no proper use case for the coin in the crypto world except for the trading part. But there are so many other cryptocurrencies that are emerging with proper use cases. When they become popular, Bitcoin might gradually lose its value because the others might win the race when it comes to use cases.
If you like what I'm doing on Hive, you can vote me as a witness with the links below.
Vote@balazas aHive Witness
Vote@kanibotas aHive Engine Witness
Posted Using InLeo Alpha
It's true that Bitcoin has been a solid investment in the crypto world and has maintained its value over time. However, it's also important to consider other promising projects with great potential. Diversifying your portfolio can be a smart move to balance risk and potential rewards. It's like having both Gold and Silver in your investment strategy. What are your thoughts on this? Do you have any other coins or projects you're interested in? Let's chat more about it! 😊🚀