The Ultimate Cryptocurrency to Buy with $1,000 Today

There are thousands of cryptocurrencies in circulation today. And while they all sound enticing and tout the possibility of creating life-changing wealth, the reality is that investing in Bitcoin (CRYPTO: BTC) remains the simplest and most straightforward strategy for gaining exposure to this booming asset class.

This pick won’t win any points for originality, but the data and his near-impeccable track record speak for themselves. For investors with a little extra change in their pocket, here’s why Bitcoin is most deserving of your $1,000.

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Bitcoin sets the tone for crypto

Bitcoin’s market capitalization represents more than half of the crypto asset class’s total value. Due to this excess value, the majority of cryptocurrencies trade in a pattern correlated to that of Bitcoin. In other words, as Bitcoin evolves, so does the rest of the market.

Not only are other cryptocurrencies highly correlated to Bitcoin, but they are also generally inferior to Bitcoin in terms of performance. In a recent survey conducted by crypto analyst Benjamin Cowen, he found that out of the top 200 cryptocurrencies, only 39 outperformed Bitcoin over the past year. Rest assured that this number would be even lower if the analysis took into account data over a longer period of time.

The harsh reality is that when investors venture into altcoins, they expose their portfolios to significantly higher risks that rarely produce better returns than simply sticking with Bitcoin. The adage “If it ain’t broke, don’t fix it” perhaps sums it up best. Bitcoin is not broken and remains the most efficient, reliable and successful asset in crypto.

The undisputed leader in decentralization and security

Part of Bitcoin’s elegance is its unprecedented levels of decentralization and security. In many ways, it is the epitome of what a cryptocurrency should be.

Bitcoin does not have a single group or entity overseeing its function. Unlike other cryptocurrencies that have teams of developers and founders, Bitcoin is able to operate without any supervision.

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This should also reassure investors in Bitcoin, as there is little to no counterparty risk associated with owning it. Although it is often glossed over, investing in other cryptocurrencies is essentially an endorsement of the developers and founders who operate its blockchain, fix bugs, and in some cases even adjust monetary policy. There is none of this with Bitcoin. It is truly a decentralized network with no entity at the helm.

Its unrivaled track record of security and performance further solidifies its role as a true cryptocurrency. The Bitcoin blockchain has never been disconnected or compromised, a feat few blockchains can claim. When you consider that nearly a billion transactions have taken place on the Bitcoin network over the past 15 years, this accomplishment becomes all the more impressive.

Leading the crypto revolution

Last but not least, we need to discuss Bitcoin’s position at the forefront of a nascent financial revolution that is still in its early stages. Surprisingly, only a mere 15% of the world’s population currently owns cryptocurrencies.

As blockchain technology and cryptocurrencies establish their superiority over traditional fiat currencies, it is not difficult to see how the value of cryptocurrencies is poised to skyrocket with increasing exchange rates. adoption. This upward trajectory is not only promising for the entire asset class, but particularly advantageous for Bitcoin.

As the flagship and most valuable cryptocurrency, Bitcoin enjoys unparalleled accessibility, making it the natural entry point for newcomers venturing into the digital asset space. But not only is it the natural entry point for the average investor like you and me, it’s also about finding a new home on Wall Street and in traditional finance. Take the recent endorsement of Bitcoin ETF as proof.

Adding it all up, it’s almost certain that Bitcoin’s limited supply of 21 million coins will face increasing pressure in the years and decades to come. If that happens, its price will have no choice but to rise in an attempt to keep pace with increased demand.

Should you invest $1,000 in Bitcoin right now?

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RJ Fulton has positions in Bitcoin. The Motley Fool posts and recommends Bitcoin. The Mad Motley has a disclosure policy.

The Ultimate Cryptocurrency to Buy with $1,000 Today was originally published by The Motley Fool

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