Bitcoin (BTC 0.40%) has been a tremendous addition to anyone's portfolio, despite the extreme bouts of volatility. Had you invested $10,000 in this digital asset 10 years ago in mid-January 2016, you'd have $2.5 million today. This means you would have captured an incredible 25,000% gain.
After it fell 5% in 2025, Bitcoin is off to a strong start this year, up 10% (as of Jan. 15). It still trades 22% off its peak. Regardless of the recent price action, this is an interesting asset to pay attention to.
Is Bitcoin a buy, hold, or sell in 2026? I think there are two reasons why this crypto asset is a firm buy.
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1. Bitcoin is not as risky as it once was
A decade or more ago, buying and holding Bitcoin was viewed as highly risky behavior because it was very volatile and unproven. Critics argued that it had no purpose other than facilitating illicit commerce over the internet. It was not the easiest process to purchase Bitcoin. The financial services industry at large thought it was a fad. And it wasn't even an important topic on the minds of politicians.
Today, however, the entire script has changed. Bitcoin's rise has resulted in a massive market cap of $1.9 trillion. This is more valuable than all but five companies in the world. Consequently, its size has given it recognition as a truly global asset.
Bitcoin has never been hacked, with credit going to its simple yet secure layout. It has survived various crypto-related entities going bust, as well as numerous crypto winters, only to reach newer highs over time. No competitor blockchain has come close to approaching its dominance in the industry. And when it comes to brand name, network effects, and liquidity, Bitcoin is second to none.
Moreover, politicians are leaning in. After he took office, President Donald Trump helped create a Bitcoin Strategic Reserve in the U.S. Large traditional financial institutions have also realized that they can't ignore Bitcoin, as people want ways to gain exposure to this digital asset.
CRYPTO: BTC
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2. Bitcoin has significant upside
Bitcoin being a de-risked asset right now means that it has a floor protecting it from the downside. The foundation is intact for it to continue making substantial progress. This leads me to the next reason why Bitcoin is a worthy buy in 2026. It has significant upside over the long term.
Bitcoin today is a truly tiny share of all the wealth tied up in various other asset classes. Theoretically, it has a gargantuan total addressable market. People are continuing to learn about the value of owning a decentralized, digital, predictable, and censorship-resistant asset in their portfolios that has a hard supply cap. More money will inevitably flow to Bitcoin, driving demand and its price higher.
Investors should think about buying this crypto in 2026.
