Investment is often understood as the activity of using capital to invest in various projects, an activity that many people believe is only for the wealthy due to the large amount of capital required.
Is Bitcoin the Most Equitable Investment
This creates a significant barrier for those in the middle and lower income brackets, making it difficult for them to access investment opportunities such as real estate, expensive art, and startups. The wealthy can easily increase their assets through these investment channels, while those with lower incomes are restricted due to the high capital requirements.
The aim of this article is to explain why Bitcoin can be a “fairer” choice for wealth accumulation. Bitcoin opens up opportunities for everyone, regardless of their wealth level, with easy access no matter where you are in the world and without requiring large initial capital.
We will explore how Bitcoin helps low- and middle-income people access investment opportunities, protect asset value against inflation, and create fairness in investment and long-term wealth accumulation.
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Table of Contents
The Inequities in Traditional Asset Investment
How can you buy shares in the world’s leading companies while living in a small country with a limited financial system?
How can you take advantage of the growth of the U.S. stock market, especially the excitement from companies in the artificial intelligence sector?
Investors outside the U.S. often face regulatory barriers, high transaction fees, and complex legal requirements.
In many countries, there are investment opportunities available only to those with high incomes or large assets.
For example, to invest in some venture capital funds or startups, investors must prove significant income or assets.
This creates barriers for lower-income individuals to access high-return investment opportunities. From another perspective, these regulations are also in place to protect small investors from the risks associated with high-risk investment opportunities. However, this acts as a gate that blocks opportunities for those who want to use their capital to seek life-changing investment opportunities.
Real estate or expensive art investments are prime examples. These types of assets typically have very high values, requiring substantial investment capital.
Moreover, investing in real estate and expensive art not only requires large capital but also demands specialized knowledge and exclusive industry connections. Ordinary people often lack the resources and information to access these opportunities, creating a significant disparity in asset accumulation capabilities across social classes.
Why Bitcoin Might Be a Fairer Choice for Wealth Building
Potential for Growth
Bitcoin’s growth potential over the years has created numerous profit opportunities for investors. Since its launch in 2009, Bitcoin’s value has increased significantly, bringing substantial returns to those who hold it. This creates a level playing field where everyone, whether small or large investors, can take advantage of this opportunity to grow their assets.
Easy Accessibility – Investment Opportunities for Everyone
You don’t need to buy a whole Bitcoin. You can purchase a fraction of it. For example, if you only have $100, you can still buy a small portion of Bitcoin and start your investment journey. This is different from investing in real estate or art, where you need a large sum of money to participate.
Bitcoin opens up investment and wealth accumulation opportunities for everyone around the world, regardless of nationality, gender, or economic status. With just a smartphone and an internet connection, anyone can buy, sell, and trade Bitcoin easily. This is especially beneficial for people living in developing countries where banking systems are underdeveloped or hard to access.
Bitcoin’s ability to democratize access to investment opportunities makes it a compelling choice for individuals from all walks of life. Here are some additional points to consider:
Inflation Protection
Bitcoin is often seen as a hedge against inflation. Unlike traditional fiat currencies, which can lose value due to inflationary pressures, Bitcoin’s supply is capped at 21 million coins. This scarcity can help preserve its value over time, providing a safeguard for wealth.
Transparency and Security
Bitcoin transactions are recorded on a public ledger called the blockchain, which ensures transparency and security. This decentralized nature of Bitcoin means that no single entity controls it, reducing the risk of corruption or manipulation.
Global Reach
Bitcoin is not bound by geographical borders. This means that individuals in countries with unstable economies or restrictive financial systems can access and benefit from Bitcoin. It empowers people to participate in the global economy, transcending local financial limitations.
Inclusivity and Financial Freedom
Bitcoin fosters financial inclusivity by allowing anyone with internet access to participate in the financial system. This is particularly valuable for the unbanked population, who might not have access to traditional banking services but can engage in digital financial transactions using Bitcoin.
Bitcoin and the Early Investment Advantage for Retail Investors
One interesting aspect of Bitcoin is that it allows retail investors to invest earlier than large institutional investors.
In traditional financial markets, professional investors and financial institutions always have the advantage of early investment in major opportunities. For example, Initial Public Offerings (IPOs) often have private investment rounds before they are opened to the public.
Luxury real estate is typically sold to insider investors before being released to the broader market.
Institutional investors often have the opportunity to invest in startups at very early stages through venture capital funds. Retail investors typically do not have this opportunity due to capital and relationship requirements.
Bitcoin truly provides an advantage for retail investors over institutional investors.
Since its launch in 2009, Bitcoin has offered opportunities to anyone with basic technological knowledge and a small amount of initial capital. This is entirely different from traditional investment opportunities, where institutional and professional investors often have the upper hand due to large capital reserves and special relationships.
The Development of Bitcoin and Market Penetration Stages
Bitcoin’s growth and market penetration have undergone several key stages, each offering unique opportunities for investors. Understanding these stages can help highlight why Bitcoin is seen as a fairer investment option for everyone. Here are the stages of Bitcoin’s development:
Early Stage of Bitcoin (2009-2012)
In the early years after Bitcoin’s creation, most investors were small individuals, software engineers, and tech enthusiasts. At that time, Bitcoin was not widely known and lacked the participation of large institutions. These small investors had the opportunity to buy Bitcoin at very low prices. For example, in 2010, a programmer named Laszlo Hanyecz famously bought two pizzas with 10,000 BTC, an amount that is minuscule compared to Bitcoin’s current value.
2017 Bull Market
Before Bitcoin’s price explosion at the end of 2017, most Bitcoin buyers and traders were still individual retail investors. While financial institutions and large investors remained skeptical about Bitcoin’s legitimacy and potential, many small investors seized the opportunity to invest in Bitcoin early. As Bitcoin’s price soared from around $1,000 to nearly $20,000 in 2017, these early investors reaped enormous profits.
2021 Bull Market
By this time, Bitcoin saw significant participation from large investors, particularly companies buying Bitcoin as an asset to store value and hedge against inflation.
After Bitcoin had proven its potential, major financial institutions and professional investors began to show interest and invest in the market.
Companies like Tesla, Square, and MicroStrategy bought large amounts of Bitcoin to include on their balance sheets.
Post-2024 ETF Approval
After 2024, when the Bitcoin spot ETF was officially approved, funds from traditional investment firms began to flow into Bitcoin. Bitcoin was moving towards widespread public acceptance.
Bitcoin ETFs were developed to provide an easier way for institutional investors and traditional investors to invest in Bitcoin. However, retail investors had the advantage of direct access to Bitcoin long before, while ETFs were still in the process of approval, deployment, and customer education.
Besides Bitcoin, very few assets offer a similar early investment advantage to retail investors.
Conclusion
Bitcoin truly offers a fairer opportunity for investment, allowing anyone, regardless of where they live or how much money they have, to participate in the market and benefit from its growth. This makes Bitcoin a more attractive and fairer choice for wealth accumulation compared to many traditional asset types.
Disclaimer: This is not investment advice. Please conduct your own research and consider your financial situation carefully before making any investment decisions. We are not responsible for any financial losses you may incur. Invest wisely and at your own risk.
