If you work in blockchain and web3, you’ll know all too well that when normies aren’t ‘explaining’ crypto to you, they’re asking, “What crypto should I buy?”.
And it's a fair question.
However, the more I know about crypto (and this is my third cycle as an investor), the less I know which crypto is going to moon next.
But what I do know (what we all know), is that Bitcoin, the king of crypto, is the only cryptocurrency that has always exceeded its previous highs.
And with a projected CAGR (Compound Annual Growth Rate) of 30%, Bitcoin is what some pundits call ‘The trade of a generation’. (Assuming investors are ready to hodl!)
And that’s just the start.
I’m not a Bitcoin maxi. I hold other coins. But there are so many reasons to be bullish on BTC right now.
Here’s (some of) my logic:
- Bitcoin (for better or worse) has finally been embraced by mainstream finance and the US government - and the result has been billions of dollars pouring in through ETFs and new BTC all-time highs.
- Bureaucracy takes time. This means many companies and countries are probably still in the planning stages when it comes to BTC ETF exposure.
- Yes, investors are a bit risk-off at the moment, but there will always be capital looking for above-average returns. Across the past decade, Bitcoin has (mostly) been the best-performing asset available.
- Meanwhile, many countries are facing a pension crisis, with Boomers retiring, Gen Z opting out or unable to get work, and people having fewer children. An outperforming asset like Bitcoin could significantly reduce the deficit in pension funds.
- On the subject of deficits, the US (and plenty of other countries) has a historically massive debt deficit - $1.8 trillion in 2024. Trillion. Puts crypto’s current $2.5 trillion market cap into perspective, doesn’t it?
While Trump’s initiatives are trying to reduce that, the debt will come up for refinancing soon. And a cheaper dollar will be better.
In simple terms, if the dollar weakens, the value of the debt falls relative to other currencies, making it cheaper to refinance. They NEED that.
- So, once the Fed starts cutting interest rates, the dollar will weaken, and assets like Bitcoin should benefit.
- Why? Lower interest rate make high yields harder to find, so high-performing risk on assets like BTC become a strong choice.
I could go on (QE anyone?), but that’s already a lot of big reasons to be bullish about Bitcoin.
Wait a minute. Does this mean you hate altcoins?
No.
Obviously, for those hoping to make high returns in a shorter time frame, smaller cap coins offer a higher risk/reward ratio.
And for those looking to support a project with great tech, buying and hodling is an important way to show the love.
While this altcoin season has been a bit depressing so far, historically, the alts only moon at the end of the bull run. Assuming Trump’s tariffs and policies don’t break the financial or geopolitical system, (or even if they do?), we may be in a bear trap right now.
The alts aren’t seeing as much interest from TradFi yet. But if Bitcoin reaches a new all-time high, now could be a good buying time for altcoins.
(Or not. NFA etc.)
As we know, altcoins usually go up by a bigger percentage than Bitcoin, due to their lower market capitalizations.
Other important factors for alts include community support, the sentiment around them and their sector in crypto, technological use cases and advancements, partnerships, and sometimes, their newness (no old holders ready to dump their bags!).
But if any normies out there are reading this, with fiat to invest in crypto, do yourself a favour…
Before you ask - or worse, try to explain to me what Binance does (true story, kek)
Just buy some Bitcoin and HODL.