People often ask me why they should invest in Bitcoin. My answer is that you should “save” in Bitcoin instead of “invest.”
Although Bitcoin behaves like an investment for those who like to ogle over financial charts, Bitcoin has no underlying cash flows and is fundamentally different than any “investment” out there. The goal for many when investing in traditional asset classes is to collect cash flows over time from that asset and/or resell the asset for a higher monetary price in the future. The goal for many, including myself, who have saved in Bitcoin for a while, earn Bitcoin, and accumulate more over time is to never have to “cash out” because Bitcoin itself becomes a global monetary network that people, businesses, and institutions all over the world use and accept for goods, services, and other assets.
Understanding Bitcoin requires a proper frame of reference.
Many get bogged down defining Bitcoin and argue whether it’s a money, currency, commodity, property, etc. Truthfully, Bitcoin and similar cryptocurrencies are alien financial entities that transcend traditional classifications that have grown out of a world dominated by fiat (government money monopolies). I will let others hash out those definitional arguments, which actually serve to constrain one’s understanding and will instead focus on why millennials should save in Bitcoin instead of in the legacy financial system.