Decentralized asset accumulation should lift Bitcoin over the coming months
With the uncertainty surrounding the economy, it is an opportune time to gain exposure to decentralized assets such as bitcoin. Called “digital gold”, it provides investors with a safe haven amid the US Federal Reserve’s tightening monetary policy.
Of course, the tightening of monetary policy can come at the expense of economic growth. As such, rumblings of a recession continue, making it imperative that investors get diversified assets like bitcoin.
More and more, bitcoin has built a reputation as a store of value apart from its capacity to serve as a medium of exchange. This store of value component is where the leading cryptocurrency in terms of market capitalization mimics tangible precious metals such as gold and silver.
“Investors have diversified with gold and silver for decades to limit their exposure to poorly executed monetary and fiscal policies,” wrote Frank Holmes in Forbes.
In addition, the decentralization characteristic of gold and silver also flows into bitcoin. The cryptocurrency only has a limited amount, and unlike the US dollar, the US government cannot simply make more of it, increasing its attractiveness and scarcity as a valuable resource.
“For the same reasons, more and more investors are also diversifying with Bitcoin, an asset whose payment system is based on ‘cryptographic proof instead of trust,'” Holmes added.
Gain exposure to Bitcoin via Futures
While investors may want to invest in bitcoin directly via unregulated crypto exchanges, using the traditional financial route, which has regulatory infrastructure, is a safer option. As such, you should consider investing in bitcoin futures via ProShares Bitcoin Strategy ETF (BITO).
BITO provides the gateway for investors who want crypto exposure to diversify their assets, but still want to remain within the safe confines of a regulated market. As the crypto market grows and the government looks to strengthen its regulatory structure, BITO can provide investors with the regulated crypto exposure they want.
In addition, the fund is actively managed, giving investors peace of mind knowing that their investment is in the hands of experienced portfolio managers. Bitcoin can be a volatile asset, and active management can make portfolio changes on the fly when market conditions warrant an adjustment.
BITO is an alternative to get decentralized exposure without direct access to the asset. Given the current economic uncertainty, now may be a good time to do so.
“The way I see it, decentralized assets have never looked more attractive than they do now,” Holmes added. “That includes gold, silver and Bitcoin, and you can also make the case for collectibles like art.”
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