Industry Analysis

4 ways Bitcoin is much better than traditional stocks

When it comes to investments, many think of stocks or sometimes, the real estate industry. However, in recent times, Bitcoin, a new form of asset class has emerged, drawing the attention of many who might have been left out due to the bureaucracy and sometimes, significant capital involved in the above mentioned traditional investment options. Here are 4 ways Bitcoin is much better than traditional stocks for long term and short investors.

10 years Return on invstment:

In 2009, after Bitcoin (BTC) was founded by the unknown Satoshi Nakamoto, many discarded its viability since it was trading at about $0.001 while most stocks normally have an IPO price comprising of double digits. Facebook for example had an IPO price of $38 and today trades under $170.

Bitcoin, however, is currently trading around $3600, down from around $20,000. This means Bitcoin has increased by more than 3 million times within 10 years. Top S&P stocks have experienced less than 200% increase within the same period.

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This high potential for ROI makes Bitcoin is much better than traditional stocks.

Wealth re-distribution and ease of entry

The 2nd way Bitcoin is much better than traditional stocks is that no one individual can claim ownership of the Bitcoin blockchain since it is open source. It has also created a lot of wealthy users, with people, less than 25 years old being numbered among the Bitcoin millionaires.

Rarely do we see a stock that has created such wealth for people of such age groups.

In as much as these young stars will like to participate in IPOs and create wealth, not many had the ability to purchase a significant amount of Facebook stocks which could yield to significant returns as Bitcoin did.

Also, the bureaucracy which is sometimes involved with participating in IPOs or simply investing in stocks makes Bitcoin favorable by younger investors.

Can easily be converted to cash

Another way Bitcoin is much better than traditional stocks is it can easily be converted into cash. With most stocks, you might need to go through a broker and generally, they can only be sold when the markets are open.

Bitcoin, for example, is active in exchanges that never sleep so in case of an emergency, Bitcoins can be easily converted to cash.

In fact, it can be used as cash with many businesses now accepting Bitcoin as a form of payment. Some states in America are now even accepting Bitcoin for payments of income tax.

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Can be exchanged to other assets

Unlike Bitcoin, stocks can primarily be converted to fiat after being sold before one can pay for goods or serices.

Bitcoin, on the other hand, can be easily exchanged for other cryptocurrencies like Ethereum, Ripple, Litecoin etc, which can then held on to for the future or can be used to purchase goods or services accepting the coin .

Furthermore, many blockchain projects are now focusing on real word usage of their blockchain solutions via their coins. This makes the conversion of Bitcoin to their coins a neccesity.

Also, with the development of new Dapps, Bitcoin can be used to pay for their services, to invest in related projects and recently, for the buying of real estate and much more.

Final words

In as much as many call Bitcoin a bubble, or frequently refer to the high risk involved in Bitcoin investments, Bitcoin’s benefits out way the negativity that may surround it.

Its decentralized nature makes it a prefered medium of exchange and its numerous use cases makes it prefered over fiat, at least for most Bitcoin and cryptocurrency lovers.

Nevertheless, given the less accountability when hacked or stolen from exchanges, or the risky nature involved in investing, doing own research is always important to know if investing in Bitcoin is something for you.

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