Bitcoin: Is it still a smart long-term investment?
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Bitcoin's unique appeal
Bitcoin is a groundbreaking asset, combining gold-like qualities with modern advantages like portability and divisibility. Its value stems from its hard-capped supply and decentralised network, which has never been hacked and has operated without downtime for 16 years. Although it lacks gold's historical track record, this may suggest untapped growth potential rather than being a drawback.
Recent price dips, sparked by global market fears and U.S. tariff policies, have raised questions about whether now is the right time to invest in Bitcoin. Yet, with a 400% surge since 2023 and prices above past peaks, Bitcoin's upward trend persists, despite short-term volatility.
Regulatory clarity: A game changer
Regulation, once a major hurdle for Bitcoin's growth, is now evolving in a way that could unlock its full potential. The 2024 ETF approvals have increased market liquidity and enhanced Bitcoin's credibility as an asset class, reinforcing its long-term viability.
Price action since the launch of ETFs mirrors that seen for gold markets after the first gold ETFs launched in 2003, which kicked off a secular bull market for gold.
Data source: World Gold Council
Alongside this, the SEC's lighter touch under Trump—already dropping speculative lawsuits against crypto firms—signals a more supportive regulatory environment for crypto innovation.
Finally, the U.S. Strategic Bitcoin Reserve, established in March 2025, retains seized Bitcoin rather than liquidating it, and provisions for the government to purchase more Bitcoin in a budget-neutral manner—a telling acknowledgement of its value. Other governments are likely to adopt this approach.
Fiat debasement and global debt burdens: Bitcoin's sweet spot
Global debt is soaring, and inflation risks are reappearing. In the U.S., the national debt continues to climb despite efforts by the new Department of Government Efficiency (DOGE). Across the pond, Europe's ramped-up defence spending adds more borrowing pressure on the euro. In China, the government is implementing a slew of measures to combat a lull in consumer spending and reignite growth.
Bitcoin has repeatedly thrived in environments of broad-based monetary expansion, as shown in the graph below, which represents the Bitcoin price vs the global money supply.
Data source: BGeometrics.com
Taming volatility: Why cost-averaging works
Despite several fundamental tailwinds, investing in Bitcoin is notoriously volatile, making market timing the greatest challenge for investors. Bitcoin's price swings are legendary—think 2017's blockchain boom or 2020's COVID rally, both followed by crashes.
By investing a fixed amount regularly, investors can smooth out the bumps.
Historical data shows the effectiveness of a cost-averaging approach in high-potential, but volatile investments: steady Bitcoin buyers since 2017 have seen big gains with less stress. The same held for Nasdaq investors through the dotcom bust and the 2008 crash.
The chart below illustrates the power of a cost-averaging approach (light blue line) in recent years. Returns are in line with a lump-sum investment approach over the period.
Data source: costavg.com
The simple way to invest in Bitcoin: Jaltech's Bitcoin Investment
For investors looking to gain or grow their exposure to Bitcoin, Jaltech offers a simple way to access the cryptocurrency. By simply completing an application form, Jaltech's investment team will process investors and give them access to Bitcoin (and/or other cryptocurrencies).
Why invest with Jaltech vs buying Bitcoin on an exchange?
- Simple process: No need to open an exchange account and then navigate through the process of buying Bitcoin.
- Secure custody: Jaltech has partnered with the leading cryptocurrency wallet provider, Fireblocks. By investing with Jaltech, your Bitcoin exposure will be stored off an exchange and through Fireblocks' custody technology.
- Estate planning: Many investors who store their cryptocurrency on exchanges either neglect to inform their loved ones about how to access it in the event of their passing or fail to disclose its existence altogether. Jaltech ensures that your loved ones can easily access your holdings if the need arises.
Jason Welz & Chris McCormick
If you are interested in Jaltech's cryptocurrency offerings, click here and complete the enquiry form, and a representative of Jaltech will be in touch.
Jaltech manages over R2 billion of investors' capital and offers a full suite of cryptocurrency products and services.
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