Do you measure the performance of your portfolio in BTC or USD?
There is no exact answer, the decision should be based on considering the pros and cons of each strategy, as well as individual goals and risk tolerance.
Measurement in BTC:
The main goal of this strategy is to increase your BTC stock. Starting with just one BTC, the goal could be to increase that to five or 10 in a number of ways, such as investing in early-stage projects or smart investing.
Disadvantages: Remember that the crypto market is volatile. You may increase the amount of BTC in your portfolio, but the value of your total usd portfolio can experience a significant decline. This could be a way to end up being "crypto rich" but poor in cash. This strategy requires a certain amount of faith in assets to hold on to for a long time — that is, knowing that fiat's offer is unlimited, while Bitcoin has a limited supply.
With this method, an individual's portfolio uses Bitcoin as a crypto version of a risk-free rate, which is an important measurement given Bitcoin's dominance over the crypto market.
Measurement in USD:
Measuring portfolio performance in USD is suitable for investors who value stability. This approach offers a clearer picture of gains or losses in terms of purchasing power over fiat. Fiat currencies such as USD are used as the basis for tax liabilities, regulatory requirements, and financial reporting frameworks in many jurisdictions. Reporting capital gains or losses and meeting regulatory requirements can be simplified by measuring portfolios in USD. The world is still working on fiat, access to fiat is still necessary to be able to carry out your daily economic activities.
Finally, the decision between measuring portfolio performance in BTC or USD is up to you. Do you want to build wealth in the crypto world or do you value the stability and convenience of fiat currencies more? Whichever approach you choose, it's crucial to stay informed and adaptable in the dynamic world of digital and traditional finance.
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