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Bitcoin is an effective component to any investor's portfolio. The purpose of this research paper was to study the capabilities Bitcoin has to investors and anyone interested in learning more about cryptocurrencies. What are the strategic applications of Bitcoin and why should it be used over other types of assets? Bitcoin offers diversification capabilities to commodities, equities, bonds, the U.S. dollar, and most stock market indices. It can offer hedging capabilities against the U.S. dollar, Ethereum, stock market indices, and commodity uncertainty. The Financial Times Stock Exchange 100 (FTSE100) is an example of an index that Bitcoin can hedge against. Bitcoin, like gold, has potential as a safe haven asset during market downturns. While Bitcoin is a high risk and high return asset, it is not affected by the same price drivers as most stocks and investors have been able to make impressive returns in short periods of time. Bitcoin can also be useful in the foreign currency exchange market. Eleven formulas were created in this research paper to use Bitcoin as a medium of measurement and exchange between currencies and cryptocurrencies. While the value of Bitcoin will vary over time, the application of the formulas will always be useful. The results reveal that Bitcoin can be useful in many ways rather than just a form of currency.