Cryptocurrency, especially Bitcoin, is not always easy to understand or accept. For many, spending money to buy a 'digital currency' operated on a massive energy-consuming network sounds… ridiculous. Legendary investor Warren Buffett even argues that Bitcoin 'does not create real value' because it does not produce any products or provide any services.

Furthermore, the likelihood of Bitcoin returning to the 'staggering' growth rates of its early years is low. Therefore, if you still have doubts about Bitcoin and cryptocurrency in 2025, that is completely understandable.

But times are changing. If you look closely, you can realize that this is the right time to own a small portion of Bitcoin in your diversified investment portfolio — and you should consider it before stepping into 2026, and here are three key reasons explaining why.

One of the biggest barriers to the cryptocurrency market historically has been the ambiguous legal framework. Without clear regulations regarding buying, trading, and owning Bitcoin, major financial institutions and billionaires have often steered clear of this market.

However, as we move into 2025, the landscape has changed. The U.S. government under President Trump is pushing to establish a clear legal framework for cryptocurrency while also setting up a Strategic Bitcoin Reserve Fund and a national digital asset treasury to manage cryptocurrency under federal oversight.

This new transparency helps reduce the 'wild west reputation' of crypto, instilling confidence in investors that they are operating in a safe and legally protected environment.

2. Bitcoin is Getting Closer to the Role of 'Digital Gold'

With legal barriers gradually being removed, the initial promise of Bitcoin — to become 'digital gold' — is becoming more convincing.

Bitcoin has a maximum of 21 million coins that will ever exist, and currently, 19.9 million coins have been mined. This limited supply, combined with decentralization, always makes Bitcoin attractive in the context of inflation or monetary instability.

Famous investor Cathie Wood has noted that the current issuance rate of Bitcoin is lower than the annual mining rate of physical gold. This makes Bitcoin a potentially better hedge against inflation than gold. According to her, a diversified portfolio with good risk management should prioritize holding more Bitcoin than gold.

3. Clear Laws Promote Capital Flows from Large Investors

Large-scale investment institutions — such as pension funds, insurance companies, or sovereign wealth funds — have historically stayed out of the crypto market due to concerns about legal risks. But as the rules of the game become clearer, they are starting to boldly invest in Bitcoin.

This is especially supported by the emergence of Bitcoin ETF funds. The iShares Bitcoin Trust ETF (NASDAQ: IBIT) has now reached $85 billion in assets under management just 19 months after the SEC approved the first 11 spot Bitcoin ETFs — an impressive growth record.

The participation of 'big players' not only helps stabilize the market but also creates a ripple effect, driving up the price of Bitcoin and attracting new investors. This is a positive feedback loop — rising prices enhance the recognition and reputation of Bitcoin, which in turn continues to attract more capital.

Conclusion

The picture of Bitcoin in 2025 is gradually coming together: clearer legal frameworks, the image of 'digital gold' being reinforced, and large capital flows starting to enter. Although we cannot guarantee that the journey will be 'smooth sailing all the way to the moon,' holding a small portion of Bitcoin in a long-term investment portfolio is an idea worth considering.

You can buy Bitcoin directly or through ETF funds like iShares Bitcoin Trust. It is important to maintain a reasonable ratio — small enough not to be significantly affected if Buffett's view is correct, but large enough to benefit if Cathie Wood's predictions come true.