Bitcoin, the world’s pioneer cryptocurrency, has attracted all manner of attention from governments, regulators, skeptics, scammers, investors, and, most recently, institutional players since its inception in 2019. This guide explains why adding a Bitcoin investment to your portfolio in 2025 could be a good decision.
When most people thinking about investing in Bitcoin see headlines like “Crypto Makes Teen Millionaire Overnight,” or “How Crypto Made Early Investors Ridiculously Wealthy,” they assume there are no more opportunities, thinking the ship has already left the harbor without them. While there could be an aspect of truth in that kind of thinking, the truth is the dust hasn’t settled yet, and there are still more opportunities ahead in this “money of the future” evolution.
Successful… and Not-so-Successful Stories
If you’re considering investing in Bitcoin, a simple Google search for a term like “Bitcoin success stories” will open up many interesting scenarios. For example, Forbes magazine has the story of a man who spent $3,000 to buy 20,000 Bitcoins in October 2010 at the price of $0.15 each. Bitcoin made the headlines a few months later when its price grew over 2000 times to reach $350 per Bitcoin. The man sold off 2,000 Bitcoins at $350 and another 2,000 Bitcoins at $800 apiece to make $2.3 million. The man went on to make many other sell-offs and eventually earned over $25 million from the initial $3,000 Bitcoin investment.
On the flip side are other not-so-successful stories. First is one about computer programmer Laszlo Hanyecz, who infamously spent 10,000 Bitcoins to buy two pizzas – that would amount to $876,207,100 at the time of writing. There’s also the sad incident where 32-year-old James Howell discarded a hard disc containing the private keys to his 7,500 Bitcoin stash. While that would be $657,155,325, the authorities have rejected his pleas to allow him to turn the dumpsite upside down to retrieve his hard disk. What about Lily Allen, who rejected a 100,000 Bitcoin payment to stream a performance, gig? The stories are endless.
It Can Never Be Too Late
Whether to make a Bitcoin investment today or it’s already too late has been a hot topic over the years and will always be. What with all the noise surrounding the crypto space? It’s very easy to give up hope especially after listening to stories about massive failure and extreme success. As far as investing in Bitcoin is concerned, plunging in as soon as you can, would be the best decision you can make. Addressing this important subject, financial guru and best-selling author of Rich Dad Poor Dad Robert Kiyosaki stated in his X handle that “while the price of each coin is important… Ultimately, the amount of coins, gold, silver, or bitcoin you have” matters more than the price of Bitcoin at the time you choose to invest.
Get in Early
While Robert Kiyosaki once regretted not investing in Bitcoin when it was $10 apiece, he started buying the digital asset at the price of $6,000, and at the time of writing, he owned 73 Bitcoins. The renowned author said in November 2024 that he planned to continue to make Bitcoin investments to reach 100 Bitcoins by 2025, at a time when the price of BTC was about $90,000 each, and expected to surpass $100,000 by the end of 2024.
The secret to investing in Bitcoin, just like any other financial investment, is getting in early relative to the time you get an opportunity. Considering that the price of Bitcoin could still go up, getting in now means that you potentially place your investment where you could become a part of future success stories if you are able to HODL, even when the market appears shaky, as it will from time to time. If you choose to invest in Bitcoin in 2025, you could be positioning yourself just before a bull run, and your investment could become a gold mine. The following are reasons why there is still time to make a cryptocurrency investment:
Bitcoin’s Limited Supply
Unlike traditional currencies that governments can print in excess and affect the value, Bitcoin has been designed to only ever have 21 million Bitcoins. The definite supply was created deliberately and remains among the coin’s main characteristics. The price of BTC has always rallied based on a phenomenon called “Bitcoin halving,” which happens every four years. Halving is designed to reduce the reward that Bitcoin miners receive for confirming transactions by half. The halving events have so far occurred in 2012, 2016, and 2020, and the last took place in April 2024. Most experts believe the surging price observed is the result of the halving events and political events following the US presidential elections won by pro-crypto candidate Donald Trump.
Bitcoin as a Store of Value
Also known as digital gold, Bitcoin is slowly gaining favor as a store of value because of the economic concept of supply and demand. Unlike traditional government-controlled currencies like the US dollar, the fixed supply of 21 million coins is about to be reached. As that time draws close, the Bitcoin mining process gets increasingly difficult, meaning it takes much more effort to produce new Bitcoins. The scarcity of Bitcoins can be compared to the appeal of rare precious metals like gold, which investors consider the true store of value. As time has gone by, many investors today consider Bitcoin an alternative to gold and other precious metals as a haven asset. Bitcoin is slowly but surely being seen as a hedge against inflation that people could use to diversify their portfolios and preserve their wealth over the long term.
The Future of Bitcoin
When talking about making a Bitcoin investment, consider the fact that it resembles all other established assets that are subject to demand dynamics. Beginning in 2023, the introduction of some specific crypto investment products has seen Bitcoin adoption rapidly go into the mainstream. There are already many businesses and merchants worldwide that accept Bitcoin as a medium of exchange, besides there being infrastructure established to enable the average person to use it as a form of payment. Technological development has ensured that there are many crypto exchanges, user-friendly digital wallets, and the elimination of technical barriers that existed during Bitcoin’s early days.
There’s currently increasing interest in Bitcoin investment among institutional market players. Endowment funds, asset management firms, and hedge funds have lately started adding Bitcoin into their portfolios after recognizing the crypto asset’s potential as a portfolio diversifier and potential as a store of value. Bitcoin has become especially attractive because it has characteristics that give it the potential to hedge against inflation. For example, the Bitcoin exchange-traded fund (ETF) market registered $123 billion worth of inflows, mainly from institutional players, and it’s still growing. The interest in Bitcoin investment by countries and public and private companies via ETFs has added to Bitcoin’s allure.
Become a Part of the Future
There’s every indication that the year 2025 will become a groundbreaking period for anyone thinking about investing in Bitcoin. As experts predict that the price of the asset will exceed $100,000 by early 2025, there will be more positive attention, investment, and innovation surrounding Bitcoin. For anyone with a vision, this could be the ideal time to consider a Bitcoin investment seriously.
For potential investors who seek assets with a history of stellar performance, Bitcoin has a record to show for it. Notwithstanding the volatility normally associated with the cryptocurrency market, BTC has mostly outperformed many traditional assets in the last 11 or so years. The following table shows Bitcoin investment’s historical returns as of December 2023.
1 year: 156.62% returns
3 years: 50.00% return
5 years: 999.77% return
7 years: 5,147.10% return
10 years: 6,172.12% return
Considering these figures, we can safely conclude that investing in Bitcoin still has the potential for a good return on investment and can be attractive if you have the patience to wait for high returns.
