This week has been a rollercoaster for cryptocurrency investors, with the price of bitcoin rising above $100,000 only to drop down near to $92,000 just one day later – a bit under the $96,000 + price point we ended the year with.
This is not the first time bitcoin hit the $100,000 mark before dipping back below this record high. It was, however, a quick and deep fall that has many concerned, and for good reason: This reportedly left over 200,000 bitcoin buyers with a short fall of 627 million.
Unfortunately, this spectacle seems to be detracting from the stellar gains crypto experienced in 2024. The reality is – while large fluctuations like the one that happened this week might give you some pause, cryptocurrencies like bitcoin should be assessed for their long-term investment potential – especially for retirement, rather than as a speculative asset.
Here’s why you shouldn’t sleep on the benefits of bitcoin as an asset…
Bitcoin outpaced other investment forms in the past decade
Since its inception, bitcoin has gone through cycles of rapid growth followed by temporary corrections.
Despite this latest dip, the overall bitcoin trend is encouraging. In fact, bitcoin has been the fastest-growing asset since 2014, outpacing traditional investments like stocks, gold, and real estate.
Over the past decade, Bitcoin has boasted a compound annual growth rate of 80%, with a 67% annualized return over the last five years, setting a new gold standard for investment performance.
Looking at the short-term doesn’t do justice to bitcoin’s Cinderella story. Betting on bitcoin still seems like a really smart thing to do.
And 2024 proved this continued growth is not likely to slow down, especially since…
Institutions worldwide are leading the way toward broader crypto adoption
Bitcoin’s astronomical jump over the past year isn’t coincidental—it’s partly fueled by increasing global adoption and institutional backing.
Government institutions and major corporations have begun to embrace cryptocurrency in ways that were unimaginable a decade ago.
El Salvador set a precedent when it adopted bitcoin as legal tender in early 2023. And in early 2024, the U.S. Securities and Exchange Commission (SEC) approved bitcoin EFTs.
Countries around the world are increasingly recognizing the role of cryptocurrencies like Bitcoin as an asset in the global economic landscape, with many holding sizable BTC assets acquired through donations or direct purchases, as well as crypto assets seized from criminal organizations.
Even China, which has recently passed strict cryptocurrency legislation, understands that bitcoin is likely here to stay: the Chinese government reportedly holds 190,000 BTC as of August 2024. This amount falls slightly behind the United States, which is said to hold 213,247 BTC as of the same date.
Financial institutions are also jumping headfirst into cryptocurrency’s rising tidal wave. Financial giants like Fidelity and BlackRock now offer crypto investment options to their clients. Even 401(k) portfolios are beginning to include cryptocurrency options, signaling a shift toward mainstream acceptance.
Some high-profile individuals have also caught notice of this cryptocurrency’s rising star…
The entrepreneurial class is giving bitcoin their stamp of approval
Bitcoin’s resilience and potential have caught the attention of high-profile investors and innovators.
Billionaires like Mark Cuban have publicly endorsed bitcoin as a more valuable asset than gold in uncertain economic times. (Now, I’m not quite sure I agree with that. I will go so far as to say that, regardless of economic conditions, bitcoin specifically and crypto generally have a massively greater growth potential than gold.)
MicroStrategy CEO Michael Saylor has also emerged as one of bitcoin’s most vocal proponents, investing billions of dollars into the cryptocurrency as a cornerstone of his company’s strategy. The software mogul backed this support as recently as this past week, with MicroStrategy reportedly purchasing 1,070 bitcoins, valued at $101 million, bringing the company’s bitcoin investment up to nearly half a million BTC.
These endorsements from business leaders continue to add weight to bitcoin’s growing legitimacy as a long-term asset.
For these figureheads, a large part of bitcoin’s appeal is one of its most enduring propellers…
Bitcoin’s liquidity makes it a highly desirable asset
One of bitcoin’s greatest advantages is its liquidity.
Bitcoin can be bought or sold 24/7. A growing number of businesses continue to develop financial apps that facilitate payment and transfers through cryptocurrencies…
Not only are investors capitalizing on the ease of cryptocurrency use and trade – individuals in developing countries are receiving payments, transferring assets across borders, and protecting their value of their wealth through bitcoin and stablecoins in the face of rising inflation and increased economic instability.
This level of accessibility is unprecedented in the world of finance, making it easier for everyday investors to enter and exit positions as needed, and for anyone to carry out daily transactions with ease.
Based on this appeal, bitcoin’s future seems to look brighter than ever…
Bullish bitcoin predictions for 2025 have us excited about its future
Sure, past performance is not always an indication of future performance. That hasn’t stopped analysts from eagerly dishing out some promising predictions for bitcoin in 2025.
Bankrate recently published its 2025 bitcoin forecast, sharing a roundup of some optimistic estimates by well-known financial giants.
The U.S. investment management firm VanEck sees bitcoin ending the year at $180,000.
Both banking firm Standard Chartered and venture capitalist Tim Draper, project bitcoin to breach the $200,000 mark in 2025, with the latter estimating a bold price of $250,000.
It might be difficult to imagine bitcoin reaching these new heights in just a year. Then again, the growing enthusiasm and continued backing of bitcoin and other cryptocurrencies through institutional adoption bodes well for some of the more ambitious predictions.
Then there’s the incoming Trump administration, which is composed of several crypto advocates. Based on all these factors, the future of bitcoin seems brighter than ever this upcoming 2025.
Secure your future with a bitcoin IRA
Bitcoin, like any other form of investment, carries some risks. The potential rewards, however, cannot be underestimated.
Think of early investors in Apple, Amazon, or Uber – many of us wish we had seized the opportunity when these companies were still in their infancy. Investing in bitcoin offers you a chance to get in on the evolving cryptocurrency market, with an innovative asset class that appears to have significant growth potential. The key is to approach it with a long-term mindset, focusing on retirement goals rather than short-term profits.
At BitIRA, we help you diversify your retirement savings with cryptocurrency, including bitcoin. By rolling over your existing IRA or 401(k) into a digital currency IRA, you can enjoy the tax advantages of a retirement account while investing in the future of finance.
Don’t let short-term volatility distract you from the long-term opportunities that bitcoin offers.
