3 Things Every Bitcoin Investor Needs to Know

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Bitcoin (BTC +3.41%) is an extremely volatile asset. This has been a notable trend in recent months. The world’s top cryptocurrency is trading 46% below its peak as of this writing. Perhaps it’s a good idea to buy the dip.

First, though, it’s important to gain a better understanding. Here are three things every Bitcoin investor needs to know.

Image source: Getty Images.

Bitcoin’s most valuable characteristic

Any Bitcoin investor must know that there will only ever be 21 million units in circulation. This is a hard supply cap etched in the software via halving events that reduce the number of new Bitcoin units mined by a factor of 2 roughly every four years. It makes this asset extremely predictable, as the inflation rate is predetermined.

That finite supply contrasts starkly with the current monetary system. Governments continue to run up their debt balances, with rising money supplies. There’s no end in sight to this financial mismanagement. This is especially true in the U.S. Bitcoin’s fixed-supply structure is superior, as market participants aren’t seeing their positions being constantly debased.

One of the best-performing assets

BlackRock once put out a graphic with an eye-popping statistic. During the 11-year stretch between the start of 2013 and the end of 2023, Bitcoin outperformed every other asset class. The following year, in 2024, it climbed another 120%. In the past decade, Bitcoin’s price has skyrocketed 17,000%. Investors worried about the recent dip should zoom out.

It’s hard not to get excited by this sort of monumental gain. That’s what happens when an entirely new financial instrument, once viewed as a worthless internet currency in the early days, evolves into a globally recognized asset attracting interest from individuals, corporations, asset managers, and governments.

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CRYPTO: BTC

Bitcoin

Today’s Change

(3.41%) $2272.76

Current Price

$68846.00

Key Data Points

Market Cap

$1.4T

Day’s Range

$66030.00 - $69277.00

52wk Range

$60255.56 - $126079.89

Volume

41B

Running smoothly despite industry headaches

Last month, Bitcoin celebrated its 17th birthday. In January 2009, the first block was mined on the blockchain. Despite a nearly two-decade lifespan, the Bitcoin network has never been hacked. Most people might not realize this fact.

This could be surprising, given the high-profile blow-ups in the crypto industry. In the early 2010s, the Mt. Gox exchange was breached. In 2022, FTX went bankrupt after misusing customer funds. When these failures occur, investors can easily lose confidence in digital assets. However, Bitcoin has stood the test of time. This points to its resilience.

Investors now know more about this crypto to make an informed portfolio decision.

BTC1,68%
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