Why Invest in Bitcoin?
We get it. You’re skeptical of buying Bitcoin, as you should be. Bitcoin investments have certainly had their ups and downs over the years. And we don’t blame you if you’re hesitant to put money behind an asset with such a volatile past. But give us just five minutes of your time to try and convince you otherwise.
In less than 700 words, we’ll make the case as to why a Bitcoin investment isn’t as risky as you might think and why starting now could pay off big in the long-run. Don’t worry. We’ll save the dry, technical stuff for another time.
For now, let’s dig into the top three reasons why you should invest in Bitcoin.
Bitcoin Investments Historically Outperform Stocks
We’re not going to lie to you and pretend that investing in Bitcoin will make you a guaranteed millionaire. Anyone that tries to tell you otherwise is full of sh*t. Historically, though, Bitcoin investors have made some impressive returns. Let’s make some comparisons.
The best performing stock of 2017, Align Technology, grew 132% over the year. PayPal, coming in at number eight, brought investors 87% returns. And Boeing, a consistent top performer, saw a price increase of 89%.
Now, let’s look at Bitcoin. In 2017, the Bitcoin price increased from about $1,000 to around $13,700 by the end of the year. That’s a 1,270% return.
We know what you’re thinking, “But didn’t Bitcoin crash shortly after, causing financial chaos for everyone involved?” The short answer is no. The Bitcoin price currently sits around $11,000 meaning that your investment in 2017 would still have a return of about 1,000%, blowing the stock market out of the water.
Let’s look at a longer time frame, though, because you should be investing for the future, not looking for a quick cash grab.
The Bitcoin Price Has Consistently Grown
Since its inception, Bitcoin has only had two negative return years for investors. Here are the annual returns from each year since 2013:
For those who don’t want to do the math, that’s an average annual return of just over 304%. Let’s see your mutual fund bring in that kind of ROI.
Netflix, one of the best-performing stocks over the same period only brought in an average annual return of 85%. The stock also saw one negative year — similar to Bitcoin.
So now, we’ve established that, historically, Bitcoin has performed pret-ty well. But, what’s the potential moving forward?
Bitcoin Still Has Room to Grow
The Bitcoin market cap currently sits around $200 billion. To put that in perspective, Apple, a single company, has a market cap of $920 billion, and gold’s market cap is $7.7 trillion. That’s trillion, with a “t.” That gap demonstrates a lot of growth potential if you ask us.
Let’s take the analysis a step further, though.
The total value of all the easily accessible money in the world is around $36.8 trillion. This money includes coins, banknotes, and checking deposits. If Bitcoin accomplishes its goal of replacing these traditional forms of payment, the price of one Bitcoin would reach over $1.5 million.
Even if Bitcoin became the national currency of just a couple of countries, the price would push into the hundreds of thousands. With the volume of Venezuelan Bitcoin transactions growing over 800 percent in the last six months, this outcome may be closer than you think.
So, Why Invest in Bitcoin? Why Not?
We’re not trying to tell you that a Bitcoin investment isn’t without its risks. There have been times when the price has fallen over 20 percent in a single day.
However, we believe that the potential return is worth the risk. By investing small amounts over time, you set yourself up for the potential 10x returns while limiting your downside risk.
Start with just a few cents here and there, and see how it pans out. In the end, it’s just your spare change. What have you got to lose?
…And we even finished with a few words to spare.