QTR’s Fringe Finance: Why I Bitcoin

After being the best-performing asset of 2023, bitcoin has taken a backseat so far in 2024. However, that could simply be the result of speculation ahead of ETF approval. A bitcoin ETF allows investors to profit from bitcoin without having to deal with it directly.

Now that 11 ETFs have been approved and are trading, demand for bitcoin may continue to rise. That suggests a higher price over time as billions of dollars gradually flow into bitcoin ETFs.

With demand rising, a supply shock is imminent. The bitcoin halving is set to occur in mid-April, just over two months away.

This will be the fourth time bitcoin has had a halving. This is the process where the reward for mining bitcoin is cut in half.

Bitcoin is the first form of digital scarcity yet created. It can’t be copied and pasted. There will ever only be 21 million bitcoin. And a few million have already been lost.

That’s in contrast to physical money, which can be printed up. Or the digital money in your bank account, which can be changed with a few keystrokes.

That points to a tremendous value in owning some bitcoin. It works as a piece of technology still in its early stage of adoption. And it acts as a way to store value over time better than inflation-prone currencies.

To read the full rationale behind owning bitcoin ahead of the next halving, click here.