6 Reasons Why Bitcoin can Change Your Life

But what is Bitcoin, really? Putting all technical jargon aside, Bitcoin is an opportunity to make money. It should be viewed like any other investment asset. If you are reading this article and have yet to take any action, I can confidently tell you that you are missing out. The crazy ROI potential for Bitcoin will not be here forever.

Many skeptics believe that Bitcoin investors are buying into the hype, when in reality, there are logical reasons behind the revolution that they fail to see.

Here are 6 logical reasons explaining all the hype, and ultimately why you should take a more serious look into Bitcoin.
 

1. It’s Outperforming Every Other Asset Class

At the time of this writing, we are in the middle of what we call a bear market. This means the entire cryptocurrency market has suffered a major fall, retracing down 70% from its all-time high. Bitcoin, the king of all cryptocurrencies, has suffered a loss of 67%. Some cryptocurrencies even had their prices decrease as much as 96%! That’s crazy and unseen.

However, zooming out to a big picture, it is clear that Bitcoin rises year after year. For example, if you bought Bitcoin anywhere from 2009 to mid-2017, you would currently be up 500% - 5,000% or more! If you bought earlier, your profits may be in the thousands or tens of thousands of percents. The only time you would be down, is if you bought in the window from around November 2017 to March 2018, when Bitcoin rose to $20,000. Read that again, if you purchased Bitcoin over the past 9 years at any time, other than those 4-5 months, you would have gained huge profits!

So even with the recent downtrend, why should you still be optimistic about investing in cryptocurrencies?

• One of the reasons is that for new investors looking to make an entry, this downtrend has created a solid foundation for future growth and profits. History shows that Bitcoin comes back stronger after it dips.
   
• That’s also the case for the other cryptocurrencies, called “altcoins.” Despite this recent market decline, altcoins provided considerable returns to its investors far beyond most other investment channels that exist. To illustrate, we took five of the most popular stocks over the past five years and compared them to Bitcoin. Even the total sum of their ROIs was no match for Bitcoin.

2. The Future Is Paperless

Just like the dot com boom 20 years ago, cryptocurrencies exist to solve many important problems in the real world. Here are some practical use cases:

• Banking the unbanked. Being unbanked is a major setback, and guess what - there are over two billion people unbanked in the world today. The main reasons behind unbanked countries are corruption, politics, and poverty. Many of these unbanked societies do not let their people bank internationally and offer limited banking options. Thanks to cryptocurrencies like Bitcoin, anyone with access to the internet can avoid this oppression by taking part in this decentralized revolution. Cryptocurrencies by nature are decentralized, meaning that no authority can restrict it and anyone can access it. The result is freedom for anyone to send and receive money (in this case, Bitcoin) wherever and whenever they want. Taking things a step further, there are also decentralized applications which allow users to take part in loaning money, receiving loans, and interacting with the outside world.
   
• Unlike government-backed currencies, cryptocurrency is much more difficult to confiscate. It puts financial power back into the hands of the people. One recent example is the current financial crisis in Venezuela. With value of the national currency deflating, people are trying to escape with whatever possessions and wealth they have. Unfortunately, it has been reported that the government confiscated any valuable goods they can in the process, such as gold and silver. If everyone had crypto, then the government would have no means to confiscate it. Additionally, the people of Venezuela would be able to send their digital assets to friends and family in a global, digital, and private fashion.

• Some cryptocurrencies are designed to be anonymous and private. It is these two factors that put power back into the people’s hands.
   
• It’s cheaper to use. It dramatically reduces fees due to the lack of intermediaries. With cryptocurrencies, you can send transactions to anyone through the blockchain, without the need of a bank or any trusted 3rd party. Avoiding 3rd parties is what keeps the fees low. Having a global system with minimal fees helps traders, investors, merchants, and those who send money to their families abroad. During a recent taxi ride, I was discussing crypto with the driver, when he mentioned that he sends money to Afghanistan every week to his family. I found this to be amazing. Keep in mind the alternative: Western Union. They are one of the largest regulated services offering global transfers, taking a commission of up to 15% with each transfer. Meanwhile, cryptocurrency fees are less than 0.5%, sometimes less than 0.1%! For example, someone managed to transfer $99 million worth of cryptos for a fee of only 0.40 cents! ₍₁₎

3. Industry Leaders Are Joining

Here are a few facts that demonstrate the interest in cryptocurrency and blockchain technologies from major companies:

• Google is currently working on its own blockchain to improve its cloud service offerings.
• Amazon has recently launched its service (2) that will allow businesses to launch their own blockchain with little effort.
• Companies such as Expedia, Overstock, and Shopify have started to accept cryptocurrency payments.
• Many countries have launched or plan on launching their own cryptocurrency (3). That’s the case for Venezuela and its controversial cryptocurrency, the “Petro.” (4)

If you pay attention, you will notice that more and more businesses are diving into the cryptocurrency industry and using its technology.