The short answer is that I love a gamble and I see high growth potential. The other reasons are specific to me, but illustrate the value of “crypto” broadly.
I personally need to move money out of one country and into the one I’m moving to. There are millions, perhaps billions of people who would like to do the same.
I’m a young guy with a long time horizon, high risk tolerance (I play poker) and a willingness to buy and hold through crashes in return for growth. Yes, I could buy stocks, but they are at all-high time highs and there aren’t too many “great deals.” I already have a majority of my net worth in US companies. As crypto approaches the mainstream, more people will take my “1% of net worth” approach to “get in the game” as an investment. Bitcoin’s “ceiling” is just massive. As I write this, the market cap is only 36B USD. If this thing ever went fully mainstream, it will increase 100-1000x from today’s price.
I file and pay the taxes I owe, including a five figure amount while living outside the US and making a low salary. That financial blow forced me to plan to minimize taxes legally, for example reporting more deductions. BTC’s tax situation is unclear but others might see it a tax avoidance strategy (to be clear-I do not).
A friend straight up convinced me to get on the bandwagon! Look up ‘network effects’: some systems become more effective, and some resources more valuable, with each additional user. Some obvious examples are social networks and communication systems. 1 Telephone is useless, 2 have some utility, 2000 have significantly more and when everyone has one, the system as a whole is extremely useful. Each new user or investor will bring significant value to all the others. Just as my friend convinced me with, I became a crypto evangelist* trying to get my friends and family to dip their toes in Bitcoin Bay. Even if the pool of users is growing slowly, it is likely to grow exponentially if momentum stays in the right direction.
If. If. If! Yeah, this is still a gamble. Even if you believe in crypto, Bitcoin could be the Betamax, Segway, or Hindenburg of the technology: the initial failure superseded by superior products, an expensive toy of limited value or just a too-early implementation of a neat thing. Even Bitcoin hype men (yes, it skews male) seem to be paranoid about this possibility. You can make up your own mind about this, but I will put my money where my iPhone is and put a sliver of net worth into an exciting dream: the million dollar bitcoin. Let’s F’n Go!
*I could never be a fundamentalist anything- I’m more of a skeptical Reform Judaism Bitcoin guy who would never go full Krypto Kosher but still loves latkes and novelties.