Part 4/8:
The Long-Term Perspective on Bitcoin as an Asset
One of the primary benefits of investing in Bitcoin is its potential as a store of value. Unlike traditional fiat currencies, which tend to lose purchasing power over time due to inflation, Bitcoin is designed to appreciate in value over the long run. Investors would do well to view Bitcoin as a long-term commitment akin to saving, offering a hedge against the declining value of fiat money while providing opportunities for future gains.
However, those gains can be significantly impacted by taxes, which makes tax-efficient investment strategies crucial. Utilizing avenues such as cryptocurrency IRAs can allow individuals to trade without incurring immediate tax liabilities, thereby enhancing long-term wealth building.