Why Bitcoin's Best Days May Still Be Ahead of It

Long live Bitcoin (CRYPTO: BTC), the most eulogized coin in existence. Its price is down 38% in the last 12 months.

Despite that, the investment thesis for buying it and holding it forever is getting stronger, not weaker. By some measures, the coin's best days may still be ahead. Here's why.

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Most people and most organizations still don't own this asset

Bitcoin's ownership is continuing to expand into new categories of holders that didn't exist as serious holders five years ago. Each new cohort has its own multiyear adoption curve for the asset, which is now playing out and could make the next decade a great one for holders. For instance, U.S. spot Bitcoin exchange-traded funds (ETFs) launched in 2024, and they already hold nearly 6% of the 21 million maximum supply.

Another group of newcomers, public companies looking to hold Bitcoin on their balance sheets, hold 5.7% of the supply. Of particular note are digital asset treasury (DAT) companies, like Strategy (formerly MicroStrategy), which seek to accumulate Bitcoin for long-term holding using their equity as financing; Strategy alone holds 4% of the coin's total supply. Private businesses are also thought to hold around 2% of the total.

Perhaps the most important new set of owners is the sovereign countries (which include central banks), which hold 2.5%. The U.S. and China each own about 0.9%. If the coin becomes a strategic resource or a vector for projecting a country's financial power -- a view that seems to be endorsed by the U.S. Secretary of War Pete Hegseth, per a House of Representatives Armed Services Committee hearing on April 30 -- it could spur significant competition between sovereign buyers to secure more of the supply. And a bidding war would likely be beneficial to holders, to say the least.

Still, for the moment, most sovereign positions in Bitcoin are still derived from seized coins rather than deliberate accumulation of reserves or a buildup of mining capacity. If that starts to change, it'd also be a huge catalyst.

The floor is higher

Bitcoin is becoming so mainstream that it's getting harder to argue that it's going to go to zero in the blink of an eye one day.

With its supply scattered across ETF custodians, sovereign nations, corporations, miners, decentralized finance (DeFi) protocols, and millions of individual wallets, many of which have been lost or rendered inaccessible, no single panic has enough power to drive the price to anywhere near zero. Even through the current decline, U.S. spot ETFs absorbed $86 million on June 12 after weeks of capital outflows.

This asset moves slowly relative to its own narrative, and getting rich in a hurry with an investment is not on the menu. Still, over the coming decades, Bitcoin could deliver a few multiples of returns to its holders, without the anxiety stemming from its now-fading reputation as ultra-risky. And that means it might deliver the best holder experience for those who buy it now, unlike in the past.

Alex Carchidi has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.