Is buying Bitcoin the only way to get in on the crypto game? Not necessarily. Many publicly traded companies hold a ton of Bitcoin, and investing in them might be even smarter than buying BTC directly.
Why Bitcoin Stocks Could Outperform Bitcoin
Adam Livingston, a Bitcoin expert, makes a strong case for buying stocks of companies that hold large amounts of Bitcoin (we’ll call them “Bitcoin treasury companies”). He’s not just talking about a quick profit; he sees a long-term future where Bitcoin is the foundation of a whole new financial system.
Livingston predicts a massive expansion of the Bitcoin market – possibly reaching $100-200 trillion! This would be fueled by a new financial infrastructure built around Bitcoin, enabling super-fast global transactions and offering everyone access to a stable, inflation-proof income stream.
Building this infrastructure isn’t easy. It requires solving problems like secure storage, regulatory compliance, and making Bitcoin accessible to people in different countries. It also means creating products that appeal to traditional investors who might be wary of Bitcoin’s volatility. These products could reduce volatility and risk, making Bitcoin more attractive to a wider range of investors.
Essentially, Livingston believes that while Bitcoin itself is great, the tools built around it will be even greater. If Bitcoin is going to hit $1 million, we need a strong financial system to bring in all that investment.
Forget Waiting for the Dip
Crypto analyst Rajatsonfinance offers a different perspective on Bitcoin investing. He says trying to time the market (waiting for a crash to buy) is a bad strategy. Instead, he suggests focusing on building wealth first, then using that wealth to buy Bitcoin.
He argues that spending time trying to predict market crashes could be better spent building skills and creating value. Whether it’s starting a business or a side hustle, earning money and then converting that into Bitcoin is a more reliable way to accumulate it.
Rajatsonfinance points out that a successful business could generate far more Bitcoin than simply trying to “buy the dip” with a limited amount of money. Even a modest side hustle could lead to significantly more Bitcoin than you’d ever get by waiting for the perfect moment to buy.