The ultimate cryptocurrency to buy with $1,000 today

Today there are thousands of cryptocurrencies in circulation. And while they all sound tempting and flaunt the possibility of creating life-changing wealth, the reality is that an investment in Bitcoin (CRYPTO:BTC) remains the simplest and most direct strategy for gaining exposure to the thriving asset class.

This pick won’t earn any points for originality, but the data and its nearly spotless 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 cryptocurrencies

Bitcoin’s market capitalization represents more than half of the entire value of the crypto asset class. As a result of this excessive value, most cryptocurrencies are trading in a pattern related to Bitcoin. In other words, as Bitcoin goes, so does the rest of the market.

Not only are other cryptocurrencies highly correlated to Bitcoin, but they typically fall short of Bitcoin in terms of performance. In a recent survey conducted by crypto analyst Benjamin Cowen, he found that 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 time span.

The harsh reality is that when investors venture into altcoins, they expose their portfolios to significantly greater risks that rarely produce better returns than simply holding Bitcoin. Perhaps the saying “If it ain’t broke, don’t fix it” sums it up best. Bitcoin does not break and remains the most effective, reliable and high-performing asset in the cryptocurrency sector.

The undisputed leader in decentralization and security

Part of Bitcoin’s elegance lies in its unparalleled 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. In stark contrast to other cryptocurrencies that have teams of developers and founders, Bitcoin is capable of running completely unsupervised.

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This should also provide reassurance to Bitcoin investors, since there is little to no counterparty risk from owning it. Although it is often swept under the rug, investing in other cryptocurrencies is essentially an endorsement from the developers and founders who manage its blockchain, fix bugs and, in some cases, even adjust monetary policy. There is none of that with Bitcoin. It is truly a decentralized network with no entity at the helm.

Further solidifying its role as a bona fide cryptocurrency is its unrivaled track record of security and performance. The Bitcoin blockchain has never gone offline or been compromised, a feat few blockchains can boast. When you consider that almost 1 billion transactions have occurred on the Bitcoin network in the last 15 years, this achievement becomes even more impressive.

Leading the crypto revolution

Last but not least, we must discuss Bitcoin’s position at the forefront of a burgeoning financial revolution that is only in its early stages. Surprisingly, only a meager 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 soar with increasing adoption rates. This upward trajectory is not only promising for the entire asset class, but especially beneficial for Bitcoin.

As the flagship and most valuable cryptocurrency, Bitcoin enjoys unparalleled accessibility, making it the natural entry point for newcomers venturing into the realm of digital assets. But not only is it the natural entry point for the average investor like you and me, it is finding a new home on Wall Street and in traditional finance. Let’s take the recent approval of Bitcoin ETFs as proof.

Adding it all up, it is almost certain that Bitcoin’s limited supply of 21 million coins will face increasing pressure in the coming years and decades. If this happens, its price will only rise as it tries to keep up with the increase in demand.

Should You Invest $1,000 in Bitcoin Right Now?

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

The ultimate cryptocurrency to buy with $1,000 today was originally published by The Motley Fool

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