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With the recent launch of new crypto exchange-tradedfunds (ETFs), it's never been easier to buy Bitcoin (CRYPTO: BTC) for your portfolio. That said, you might still have reservations about investing a large chunk of change ($10,000 or more) into what has historically been a very volatile asset.
Bitcoin (CRYPTO: BTC) has received a lot of attention lately, mainly due to the approval by the Securities and Exchange Commission and the subsequent launch by major asset managers of spot exchange-tradedfunds (ETFs). And despite its ups and downs, it is now becoming a legitimate financial asset.
The original whitepaper that describes Bitcoin's technical function and long-term ambition compares the electricity and computing power of Bitcoin mining to digging physical gold out of the ground. The crypto giant remains a speculative asset, with the potential for both dramatic gains and significant downturns.
The value of this digital asset isn't based on anything real, so the only way to make money with it is to find a buyer willing to pay a higher price. And even if you see significant value in Bitcoin assets, you could still argue that it's overpriced. In my eyes, Bitcoin is a great asset to own in the long term.
That's a distinctly different tone than the reluctant reviews of digital assets under the Biden administration. The recent introduction of exchange-tradedfunds (ETFs) based on spot Bitcoin prices has made the crypto asset available to whole new types of investors. Image source: Getty Images.
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