Why Do People Still Believe in Bitcoin?
Every aspect of life changes with the development of the internet, and of course, technology. People can work from home more easily, buy stuff online, use real money online or even find a date without leaving their home. Social and work life are adjusting to the use of the internet, and in the middle of all of this is the financial aspect of life. Money reserves are often saved in gold, but in modern days that’s not very practical so it’s easy to understand why something new will come. Bitcoin and other cryptocurrencies are novelties that can replace gold. Of course, there are many other reasons why people believe in Bitcoin, but the premise with which they begin is that the future will be made out of digital currencies. And if we listen to our common sense, it’s not too far-fetched.
If you consider the fact that a digital currency might make a jump forward sometime in the near future, Bitcoin’s features can make some believe that it will be a main cryptocurrency for the following reasons. First of all, Bitcoin is the currency of the internet and unlike real money, Bitcoins are issued and managed without any central authority whatsoever. Second, for this reason, it is more resistant to wild inflation and corrupt banks. Third, from the beginning of the year, Bitcoin has consistently risen in value. That’s surely what makes people have faith in Bitcoin.
One thing should be noted - people who believe in Bitcoin the most are people who invest in Bitcoin and people who invest in Bitcoin are mostly not professional investors. So, one of the reasons for believing in Bitcoin is not it’s characteristic, but the characteristic of the people who believe in it.
On the other side, there are experts who have more grounded reasons to believe in Bitcoin, and that gives other’s a sense of legitimacy. The future is always uncertain, so it’s safe to say that maybe Bitcoin will be a long-term success. If that happens, the current believers will probably make more profit.
That's a rather sweeping generalization there! Yes, if you look at Bitcoin's general trend over the past 12 months, it has been generally upward, however there's been hours, days, and even weeks where the profits were negative. Robert Reid on Twitter pointed out there's been seven 30% dips in Bitcoin's price over the past year. Yes, long term it's shown to be a valuable asset, but glossing over the short term high volatility isn't accurate.
I do agree with you that the people who believe in Bitcoin are the ones who have purchased, hold and use Bitcoins. Bitcoin was created to have utility and it has usefulness to a wide range of users. I've see most prominently users from first-world countries interested in it for the convenience of a digital payment that is also more secure (trust-less) than existing services they as first-world users have access to (e.g. Paypal). But it also attracts third-world users who have either corrupt governments/banks, or insufficient/inaccessible financial infrastructure. For them Bitcoin is an onramp to financial self-sufficiency, without waiting for their government to step in and create a financial infrastructure.