Until recently, as an investment, bitcoin had different and announced risks, but that is changing, with new laws and regulations that have encouraged wider institutional acceptance.

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Throughout its 12-year history, the world's most valuable digital currency has undergone major fluctuations, with prices rising and falling by almost 10% on any given day - reaching more than $ 41,000 earlier this month. Aside from wild price fluctuations, bitcoin also has structural problems that most of the asset class do not need to consider, such as lost or stolen password keys, which can take away all your investment.

Fortunately, the rapid growth of bitcoin has led governments and institutions to step in and face the many risks associated with digital currency, with the US Office of Comptroller of Currency authorizing banks and custodians to provide cryptocurrency services, which eliminate these types of problems.

In short, bitcoin has grown - though it is in the early stages of acquisition - and now offers a significant long-term value.

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Since the inception of Covid-19, the provincial government has provided about $ 4.5 trillion in direct payments, improved unemployment, small business loans, and other forms of financing - which is likely to come, as outlined by President Biden's proposed $ 1.9 trillion. While short-term spending is necessary for long-term economic life, it also has the potential for inflation. In the last four years alone, the national debt has risen from $ 7.6 trillion to $ 27 trillion.

To protect themselves from this kind of volatility, many investors find bitcoin, which, because of its nature, is not immune to inflation. There may only be 21 million bitcoins available, due to their source code. In terms of supply and demand law, that makes bitcoin a limited asset - and demand.

At the same time, the expansion of regulations, improved infrastructure and access to financial institutions - such as Fidelity - that hold investors' money have made bitcoin investments as secure as bonds and gold-like items, which are also used to measure portfolios.

When gold collapsed from 2001 to 2011, it was largely because the period of strict monetary policy had expired because the Fed had reduced the number of fund regulations. In 2012, the price of gold declined as fears of inflation declined and the stock market expanded.

You may then ask: If bitcoin is volatile, how can it protect itself from fluctuations again? Although bitcoin has experienced dramatic price changes over the years, much of this movement could be attributed to the burning of asset class and the lack of regulation. Today, that is changing with the recently enacted regulations that apply to the influx of big players, including big money, big hedge funds, and life insurance companies, no doubt attracted by a more stable environment. While inflation may not be completely eradicated, we view bitcoin as a long-term price proposal that should grow over time.

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With major institutions now operating on bitcoin, investors may have a different concern - that they missed out on the boat. But history proves otherwise. Amazon is one of the most important companies in the world. For each of the first 12 years of Amazon, the average stock price, on average, was more than double its open value. But investing in Amazon over the past 12 years has always been of great benefit.

To invest in poultry in the emerging legacy, there is always a building site - a moment when there is enough infrastructure to allow for broad acquisition while leaving the information space. We believe we are at the moment with bitcoin.

The strongest indicator of the value of bitcoin with the full size of its market capitalization - more than $ 600 billion. If we were to look at that with the prism of the S&P 500, it would make bitcoin the top 10 company in the world, from zero to half a billion in just 12 years. Only a handful of companies, such as Facebook and Tesla, have grown so rapidly.

When the world is out of control, it is only natural to want to invest in something tangible, such as gold. But bitcoin is important because - not yet - its instability. You can always ask me for more gold. Bitcoin differs among commodities as the world's first value store where supply is not fully affected by increased demand.