Bitcoin had once again solidified its position as one of the largest assets by market capitalization after securing the 9th position among other financial heavyweight assets. BTC reclaimed the position after an impressive 160% rise in a year, overtaking the likes of Meta Platform (Facebook), Berkshire Hathaway, and Tesla.

This significant surge in Bitcoin's market capitalization prompts a closer examination of why holding Bitcoin is necessary. Below are some reasons why you should hold bitcoin as an individual or an organisation aspiring to grow more:

1. Diversification of Portfolio:

• Rationale: introducing a non-traditional asset to diversify investment portfolios.

• Advantage: helps spread risk and potentially enhances overall portfolio performance.

2. Inflation Hedge:

• Rationale: Bitcoin's capped supply serves as a hedge against inflation.

• Advantage: preserves purchasing power in the face of currency devaluation and economic uncertainties.

3. Store of Value:

• Rationale: Perception of Bitcoin as a digital store of value, akin to gold.

• Advantage: Offers an alternative store of wealth, particularly appealing during times of economic volatility. For instance, the naira has lost over 53% of its value against the dollar since the beginning of this year. This is where holding bitcoin comes in.

4. Potential for Appreciation:

• Rationale: Historically, Bitcoin's value has appreciated over time.

• Advantage: presents the opportunity for capital appreciation over the long term. Just this year, bitcoin alone has appreciated over 160% from its closing price last year.

5. Global Accessibility:

• Rationale: Bitcoin's borderless nature enables international transactions.

• Advantage: Facilitates cross-border transactions without the need for traditional banking intermediaries.

6. Limited Supply:

• Rationale: Bitcoin's capped supply is 21 million coins.

• Advantage: Scarce supply enhances its store of value proposition, appealing to investors seeking scarcity in the digital realm.

7. Institutional Adoption:

• Rationale: growing acceptance by institutional investors and corporate entities. It was on the news that the biggest asset manager, BlackRock, and other notable asset managers like Fidelity, ArkInvest, and Wisdomtree filed for bitcoin spot ETFs (exchange-traded funds).

• Advantage: Provides credibility and validates Bitcoin as a legitimate and institutional-grade investment.

In summary, holding Bitcoin can offer individuals and businesses unique advantages, ranging from diversification, hedging against inflation, global accessibility, and participating in the digital economy. However, careful consideration of risk tolerance and regulatory compliance is required.

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