I have already made 158% on Bitcoin. Here’s why I continue to hold.

I bought first Bitcoin (BTC 1.20%) April 24, 2020, when the price of one token was about $7,509. This means that my position has generated a return of 158% (as of Oct. 13) in about 2 1/2 years. That’s impressive no matter how you look at it, and that number has far surpassed popular stocks like apple and Costco Wholesale.

Even with such an unprecedented return on investment, especially compared to S&P 500its total return of 34% over the same period, I have no intention of selling mine Bitcoin inventory anytime soon. Here’s why.

Not a good time for risky assets

After reaching an all-time high of nearly $69,000 per token last November, Bitcoin has fallen 72% (at the time of writing). This has followed the general negative trajectory of the overall stock market as well.

Inflation began to rise more than a year ago and it hasn’t slowed down. This has forced the Federal Reserve to raise interest rates to slow rising prices across the US economy. Investors have lashed out at risky assets in favor of safer ones, and this shift has hurt Bitcoin and the cryptocurrency market as a whole.

The tightening of liquidity, combined with a softer economic environment, could pave the way for a recession in the near future. Consequently, this could mean even more downward pressure on Bitcoin for the foreseeable future.

Perhaps I would have looked smart in retrospect had I exited my Bitcoin position at the top last November, but it is difficult to correctly time the market on a consistent basis or call the exact top. And sitting on a paper gain of 158% right now can encourage one to sell and take the profit. But this is not my approach.

Keep a long-term mindset

Despite the price drop, Bitcoin has still generated a incredible return of almost 14,000% since the spring of 2013. And to be clear, I remain extremely bullish on the world’s most valuable cryptocurrency for the next decade. This is why I remain a holder.

Bitcoin is seen by a growing number of market participants as a legitimate store of value, the equivalent of digital gold. But Bitcoin is more divisible, useful and portable than gold. And these key features could propel the cryptocurrency’s current market cap of $371 billion, bringing it closer to its total value of $12.5 trillion worldwide. Supporting my argument here is the younger generations’ increasing familiarity with and appreciation of all things digital, a trend that will only intensify.

Large companies, such as Block and Micro strategy, has allocated part of the balance to Bitcoin. And large institutional investors are also coming in. Ark Invest, the investment firm headed by Cathie Wood, is extremely bullish on Bitcoin. In addition, Coin base recently signed a partnership with Black stone giving the massive asset manager’s clients easy access to Bitcoin. Increasing investor demand, especially for a digitally scarce asset like Bitcoin, helps support a higher price over time.

I know that the road to greater Bitcoin adoption will be fraught with extreme volatility, just as it has been in the past. But as long as I maintain a very long-term time horizon, as I do with my entire portfolio, I have no doubt that I will be able to maintain my conviction and remain a Bitcoin holder.