Why bitcoin is the only cryptocurrency to be used as an investment asset

[royalfestus]

I believe that the upcoming bull market will play a crucial role in determining the future direction of investments made by cryptocurrency whales. If the returns on investment following this bullish period do not justify holding onto a particular coin, similar to other top coins, there will likely be a significant diversification of investments into the next promising market.
Among the factors you mentioned as defining features of Bitcoin, four of them can also be found in other leading cryptocurrencies. For instance, BNB (Binance Coin) is considered a top coin that could potentially challenge Bitcoin's position, causing some investors to shift their focus and funds from BNB back to Bitcoin.

[nakamura12]

I don't think Bitcoin is the only cryptocurrency to be used as an investment but it is the common or most used by many people. Well, most crypto do follow Bitcoin's price but there are some coin that doesn't always do that where it's price increase while Bitcoin isn't. If you ask many investors then you'll know that most people investing most of their money in Bitcoin especially newbie investors as it is the advice of most people and the rest will be divided to different altcoins.

[CryptopreneurBrainboss]

With all these and more, and most importantly the fact that bitcoin price change is actually been followed by other cryptocurrency which are not secure, makes them more risky to be used as an investment asset.

It will be better to look into other assets like stock, gold and real estate for an ideal portfolio diversification

As an investor, when you're diversifying your investment into altcoins and thinking you're making a smart move, you're not and you should know that you're making a financial mistakes that others have made before and they have understood that Bitcoin shouldn't be substituted for altcoins. Altcoins can give your profits but they aren't better investment opportunity than Bitcoin. In years to come bitcoin will still be standing strong but most of the altcoins won't be in the trading again or they won't be popular as they're at the moment. Altcoins has a short term lifespan while bitcoin is everlasting.

Bitcoin wasn't created as an investment assets but it has turned to one because of some of its unique features. We should learn to diversify our investment outside of cryptocurrency just to be on the safer side. After investing in Bitcoin resist the urge to invest in altcoins and use that money to invest in other assets that are valuable like Bitcoin. We have other investment that can help you when bitcoin is experiencing some setback (price correction). I'm a big fan of having investments that has direct impact to helping humanity like investment in Real estate, investing in the education system and the rest.

[boyptc]

Having a limited supply makes it scarce and it even more scarce because of the halving. Putting up the numbers and calculating the input that it has got for those factors make it a great value as an investment.

Even if satoshi firstly implemented it as an alternative payment for fiat, change is really constant and that's seen on Bitcoin as everyone is treating it mostly now as an asset.

Maybe satoshi anticipated that knowing that it has got a limited supply or probably not. Not a problem if someone is diversifying a lot with their assets through many altcoins but the mistake they're doing is that, they're setting for less and not putting BTC as their priority pick.

[Nwada001]

~snip~

Bitcoin is not the only crypto currency that could be used as an investment asset, but it's the most commonly used digital currency as an investment asset. Aside from the above-mentioned features that Bitcoin possesses, it's also one of the oldest and first to be accepted for the exchange of goods or services.

People choose what they want to use as investment assets after considering the risk involved in all of the assets presented to them. The risk of losing everything is not the only important thing, as the amount of risk that could be accumulated also follows. This is the reason why most people out there choose to invest in some altcoins rather than Bitcoin because the possibility of the altcoin giving them a short-term huge profit is larger than the chance they can get with Bitcoin without considering the risk involved in terms of also losing everything to that Altcoin while waiting for that profit.

We Bitcoiners overlook the get-rich-quick features and consider risk reduction, considering the long-term holding decision.

[Bushdark]

I don't think Bitcoin is the only cryptocurrency to be used as an investment but it is the common or most used by many people. Well, most crypto do follow Bitcoin's price but there are some coin that doesn't always do that where it's price increase while Bitcoin isn't. If you ask many investors then you'll know that most people investing most of their money in Bitcoin especially newbie investors as it is the advice of most people and the rest will be divided to different altcoins.

There are thousands of crypto projects in the market and there are those that are stable coins and volatile coins. If we know what we are doing, we can dive into some of the good projects in the market and use them as investment asset. It all depends on us and the motive we have to wards our investment. Bitcoin is a good and reputable coin that will last as long as the cryptocurrency market is in existence. Bitcoin has good volatility and we can be assured that we are going to make good profits from it just like other coin projects in the market that we can buy and hold as long as we want to.

[Jawhead999]

Actually the main purpose of Bitcoin is used to be as a currency, not as a commodity or something that you need to hold for a long time.

So it's really subjective matter and you can't force every people to use Bitcoin as a commodity.

If only 5 reasons above why Bitcoin is the only cryptocurrency to be used as an investment asset, you're wrong because Litecoin is pretty much same, so it's not only one. You forgot about with the most important reason, Bitcoin is the first currency while the others are only following and change few thing to make it different.

[icalical]

But I think when most people talking about diversification in crypto is to diversify their altcoin choice if they choose to invest in altcoin,

What do you mean?
Sure, people have the option for diversification on altcoins. However, there are some people who invest in Bitcoin only because they don't want to take bigger risks in altcoins.

I know, most people in this forum hate altcoins, what I mean is when people saying things like 'Diversify their crypto investment' they are talking about diversifying their altcoin, Bitcoin not included it's a must have. So they already own bitcoin, they want to invest in altcoins, but it's better to invest in different altcoins rather than only one altcoin.

[Nheer]

Due to all these advantages some  people have not only taken bitcoin as an investment asset but have generalized it to other cryptocurrencies as well. Some have thoughts that investing in these alternative coins are actually diversification of one’s portfolio. But is this really portfolio diversification?

Bitcoin is an alternative payment mechanism, however owing to its volatile nature, lack of central authority, and a few other reasons, its value may rise or fall over time. As a result, individuals now see bitcoin as an investment that may be profitable over time, and they want to take advantage of this by holding onto bitcoin for a longer period of time. Other alternative coins are likewise viewed as investments to be held similarly to bitcoin because they share characteristics with bitcoin and are equally volatile, but since they follow bitcoin's price trend, they are worthless if bitcoin doesn't move. Diversification of portfolio may not be much of a use during bear market but can be highly profitable during bull runs even more profitable than bitcoin itself.

Alternative cryptocurrencies cannot be regarded as diversification of portfolio because;
1. Most of all the altcoins follow the same price trend as bitcoin, with just few going higher than it due to hype, which has made many to call them pump and dump coins.

You are right but It can sometimes be regarded as Portfolio diversification in terms of bull market where most of these coins yield greater profits than bitcoin. It just that since they follow bitcoin price trend they can’t be much of a help during bear market.

It will be better to look into other assets like stock, gold and real estate for an ideal portfolio diversification

Aside bitcoin, treat alternative cryptocurrencies as pump and dump coins that they are.

Alternative coins may seem meaningless, but you can't write them off either because they have the potential to turn a trader into a millionaire when the market is strong. As they both have the same potential for profit, I will instead treat bitcoin and alternative coin investments as a single class and refer to them as cryptocurrency investments and then i will also, as you suggested, look into other investments like real estate investments.

[aylabadia05]

This could be deduced from some of the advantages of his below;
1. Decentralization
2. Stores of value
3. Great Return on Investment
4. Fixed Number or Supply
5. Adoption rate.

Of the 5 advantages of investing in Bitcoin, the store of value is the first thing that can be used as a reference. A large return on investment can be obtained by investing in the long term.
There are some altcoins that can also get great returns if invested, but not all altcoins. Most altcoins end up in disposal.

Note: I am not advising anyone on investment

I would suggest investing in Bitcoin because you already know about the advantages of Bitcoin if it is used as an investment asset even though the purpose of Bitcoin is to serve as an alternative to fiat currency payments.
Bitcoin gives freedom to owners to use it as they wish, may be for payment and may be used as an investment.

[Peanutswar]

The use of Bitcoin is to become decentralized. Still, due to the number of people who want to have this and don't have an idea how to have it, they need to use a centralized platform, for example, exchange, so they can buy the coin they want as an investment or trading, most of the platform supports the use of the bitcoin rarely seen a platform that doesn't have a bitcoin, of course, its the mother of all coins, for me one of the reasons why the cryptocurrency is ideal to use is because of the security that the blockchain can give and being transparent unlike the current state of the mode of payment can be interrupted or make an under the table transactions.
If you know how to properly use the bitcoin or the crypto sure you can get a good profit.

[YUriy1991]

Well, just for you to know, why is Cryptocurrency present in our midst today and being introduced. Yes, nothing but for changes in the current financial infrastructure and this is why crypto is unique. Currently it is often discussed as one of the factors that can provide benefits for its users, both investors and financial institutions. However, behind these advantages, there are risks that we must understand further.

Now, according to my opinion, what you are asking is because Bitcoin is the leader of coins/tokens and the price is predicted to continue to increase and can be used as a means of payment. Well, that's why bitcoin BTC is considered an option that is used as an investment asset.

[Eureka_07]

<snip>

There could be some cryptocurrencies out there that could/might also be used as investment assets. However, Bitcoin remains the best as it has the most solid foundation and is currently known as 'the king' and the most trusted cryptocurrency. In my opinion, it is the safest crypto investment, but it will take time if the investor chooses a long-term investment. Its volatility can be useful for those who want to short.
Note to do your own research.

[Saint-loup]

Bitcoin main purpose according to Satoshi himself, is as an alternative payment to fiat currency. But over the years bitcoin has grown in such a way that many have seen it’s potential of been a great investment asset. This could be deduced from some of the advantages of his below;
1. Decentralization
2. Stores of value
3. Great Return on Investment
4. Fixed Number or Supply
5. Adoption rate.

Due to all these advantages some  people have not only taken bitcoin as an investment asset but have generalized it to other cryptocurrencies as well. Some have thoughts that investing in these alternative coins are actually diversification of one’s portfolio. But is this really portfolio diversification?

Diversification of portfolio can be termed the process by which investors, invest in different assets to mitigate a loss been encountered in a particular asset.

Alternative cryptocurrencies cannot be regarded as diversification of portfolio because;
1. Most of all the altcoins follow the same price trend as bitcoin, with just few going higher than it due to hype, which has made many to call them pump and dump coins.
financial
2. Bitcoin is the only true decentralized cryptocurrency and as such eliminates the fear of centralization which is in many altcoins which could be use to manipulate its market.

3. Bitcoin supply limit is what makes it a store of value and also an hedge against inflation, giving it an edge ahead of other cryptocurrencies.

With all these and more, and most importantly the fact that bitcoin price change is actually been followed by other cryptocurrency which are not secure, makes them more risky to be used as an investment asset.

It will be better to look into other assets like stock, gold and real estate for an ideal portfolio diversification

Aside bitcoin, treat alternative cryptocurrencies as pump and dump coins that they are.


Note: I am not advising anyone on investment

You shouldn't write misleading things about financial investments in the beginners section, but being way more cautious than that. Bitcoin is not a store of value or an hedge against inflation, neither provides guaranteed great returns on investment. All those claims are just BS for noobs IMO. Bitcoin is a high volatile and risky asset and altcoins are just higher volatile and riskier assets. But having more risky and volatile assets doesn't make Bitcoin a safe haven. Investing in Bitcoin is still mostly gambling and newcomers/beginners should only invest what they can afford to lose.

[Alpha Marine]

I don't think investing in altcoin is a bad thing. If you have proper knowledge of the coin and market then you can make your research and choose a better coin to invest in. There are many altcoins out there and choosing a good coin to invest in. That's the main reason why people are advised to just stick to Bitcoin if they don't know much about altcoins.
It won't be bad to diversify your coins if you know what you're doing.

In terms of long-term investment, Bitcoin should undoubtedly be the only coin you should consider. I don't trust any coin that much to hodl them for a very long period.
Diversification of assets is always a good thing if well calculated. It doesn't have to be only gold and stock, nothing wrong in diversifying to altcoins that you trust a bit.

[Forever101]

I think bitcoins is the only strong and first and foremost coins that ever existed which makes it a good pair for every other coins/token. This is the reason why every other coins follow it's price movement. From my point of view, every Cryptocurrency attached to bitcoins works in line with bitcoins price which means if you invest on bitcoins or other coins linked to bitcoins, one is to expect almost same result. Altcoins are not too bad but they are full  of risk and uncertainty as they can be rug pulled.

[Marykeller]

Due to all these advantages some  people have not only taken bitcoin as an investment asset but have generalized it to other cryptocurrencies as well

If we should go on to talk about investing in a digital asset, bitcoin is the first thing that people think of before they discuss investing in another cryptocurrency. However, the high cost of Bitcoin typically deters some investors from investing in bitcoin. Instead, they choose to utilize other altcoins since they are less expensive than bitcoin. Investing in altcoins simply means that, during a bull market, they will make more money than if they had bitcoin in their portfolio.

Aside bitcoin, treat alternative cryptocurrencies as pump and dump coins that they are.

Altcoin will not only be treated as a pump-and-dump coin but also as a short-term investment strategy rather than a long-term plan like bitcoin. People should only invest money they can afford to lose either in bitcoin or altcoins

[kamvreto]

I think bitcoins is the only strong and first and foremost coins that ever existed which makes it a good pair for every other coins/token. This is the reason why every other coins follow it's price movement. From my point of view, every Cryptocurrency attached to bitcoins works in line with bitcoins price which means if you invest on bitcoins or other coins linked to bitcoins, one is to expect almost same result. Altcoins are not too bad but they are full  of risk and uncertainty as they can be rug pulled.

Need to look at what altcoins are holding, top altcoins like Ethereum would not be rug altcoins so that risk would not occur. But for a new altcoin project, of course it will be more at risk of a rug happening. Bitcoin is indeed the first coin that you have to hold, because it's important. With almost the same results, but Bitcoin determines everything so that when another bullish Bitcoin follows it, but in some cases sometimes Bitcoin is bullish and others are bearish.

[suzanne5223]

Bitcoin main purpose according to Satoshi himself, is as an alternative payment to fiat currency. But over the years bitcoin has grown in such a way that many have seen it’s potential of been a great investment asset. This could be deduced from some of the advantages of his below;
1. Decentralization
2. Stores of value
3. Great Return on Investment
4. Fixed Number or Supply
5. Adoption rate.

In addition to what you mentioned some other reasons why Bitcoin has a lot of acknowledgment and people see it as a great investment asset is it
1 Consensus
2 Censorship resistance
3 Durable

But is this really portfolio diversification?

Diversification of investment in crypto has to do with allocating some portion of the investment capital to 2 or more cryptocurrencies. The idea of doing this is to reduce overall investment risk by spreading it across different crypto assets or bonds.

[Jones Praise]

Bitcoin Is not really the crypto currency used for investing. There are others such as Ethereum,XRP e.t.c just that Bitcoin Is the most reliable and profitable amongst other crypto currencies. Take for instance you invest your Ethereum and Bitcoin on different trading platforms, Bitcoin will yield greater profit and massive profit is the utmost reason why traders invest.
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