Editor's note: When cryptocurrencies first emerged, that's all they were thought of as – currencies. But as Eric Wade explains in this piece, adapted from the latest issue of his Crypto Capital newsletter, several key factors are changing how investors view cryptos. And this shift could present opportunities to build long-term wealth, if you know how to take advantage of it...

I've told the story about how I got started with bitcoin before.

Long story short, I was intrigued by the idea of a non-sovereign currency. I was looking for something similar to a hard currency (like gold)... but that could be used over the Internet.

So I started mining bitcoin in 2013.

And I still remember that I spent the first small amount of bitcoin I mined rather than holding on to it. That makes sense if you see bitcoin as a currency. You put some in your wallet, and you spend it.

But more than a decade has passed since I began mining. And now, I believe crypto is at a crossroads...

It can remain a currency – something you spend or trade for a quick gain... or it can become a store of value – an asset that accumulates wealth and can be passed down to your heirs.

And over time, I believe crypto will shed its reputation as a currency to instead become a form of wealth, like stocks or bonds.

Here's why...

Will Crypto Replace the Dollar?

When I first started mining, bitcoin wasn't considered a low-inflation asset.

The bitcoin network had its first inflation-reducing halving in 2012 – cutting the number of bitcoins entering the market in half. Inflation dropped below 25%... But it still remained above 10%.

So bitcoin might have been a convenient global digital currency, but it wasn't the best way to sidestep inflation.

But bitcoin halved roughly every four years after that. And its annual inflation rate continued to drop. Right now, the rate is less than 1%. It will never go higher than that, no matter how long you hold bitcoin. Take a look...

Meanwhile, bitcoin has continued to increase in value compared with the U.S. dollar. The U.S. dollar continues to lose purchasing power every year, as measured by the Consumer Price Index.

So, naturally, I found a digital currency that can't be impulsively printed appealing...

That's why bitcoin has started to take on another role: a store of value.

We could spend thousands of words writing about this concept and still just scratch the surface. But it can be summed up in one simple idea: Would you prefer to store your wealth in something that loses purchasing power... or gains purchasing power?

Cryptos probably won't replace the dollar altogether – not yet. But bitcoin was worth less than $1,000 when I started mining it in 2013. It's now worth nearly 80 times that... with a market cap above $1.5 trillion.

Plus, many expect the crypto-friendly Trump administration and clearer crypto regulation to also help institutional adoption. For example, Trump's executive order to set up a strategic bitcoin reserve will help build confidence in the "digital gold" currency, along with other utility-based tokens.

But bad actors will always target assets. So when you buy cryptos, it's important to follow best practices to keep them safe. We always say the security and safety of buying, moving, and storing your digital assets is your responsibility.

After all, I don't carry $1 million of cash in my pocket. So why would I leave millions of dollars of bitcoin unsecured? High-value assets belong in a safe, a vault, an insured account, a fiduciary, on the ledger of a transfer agent, or recorded with your county treasurer.

With crypto, there are very few safety nets – if any. And the safety nets that do exist are the ones that you are responsible for setting up yourself.

But as crypto prices continue to climb and mainstream adoption begins, I won't be the only investor looking for ways to treat tokens and coins more like assets than currencies to spend...

As the next phase of cryptocurrencies unfolds, this new store of value can help you build generational wealth.

Good investing,

Eric Wade

Editor's note: Investors are making the same mistakes today that they did during the last global trade war in 2018. And as investors watched their portfolios struggle, Eric used those conditions to help his subscribers make 1,000%-plus gains more than a dozen times. And right now, he's seeing the same "aftershock" opportunities. Click here to learn how to get started using Eric's strategy.