Relai is a Bitcoin-Only App: Here’s Why
Because we are driven by the belief that bitcoin is the best way to save money.
Read on to learn why we believe that bitcoin is one of the best investments anyone can make and why we have chosen to build a bitcoin-only investment app.
Bitcoin is the Best-Performing Asset Class of the Decade
Bitcoin was the best performing asset class in the past decade.
In April 2012, bitcoin was trading at around $5 per coin. Today, ten year later, one bitcoin is worth around $46,600.
That means bitcoin generated a 931,900% ten-year return on investment for early investors.
No other asset class can match Bitcoin in terms of performance. Even if we don’t look that far back and only look at the past five years.
From April 2017 to April 2022, bitcoin generated a 3,457% five-year return for investors.
To compare the returns of bitcoin with the stock market, European stocks (measured by the EURO STOXX 50 Index) booked a 71% ten-year and a 12% five-year return on investment for equity investors.
The value of gold only increased by 16% in the last decade and by 53% in the last five years, showing that the “digital gold” bitcoin is arguably the better store of value, inflation hedge, and investment.
Why Bitcoin is (Probably) the Best Investment You Can Make
Renowned Bitcoin investor and founder of Winklevoss Capital Management, Tyler Winklevoss, was right when he said:
“… [Bitcoin] will be the best performing asset of the current decade. Our thesis is that bitcoin in gold 2.0 and will disrupt gold.”
Millennials are especially fond of Bitcoin, making it the largest demographic among Bitcoin investors.
For the younger, tech-savvy generations it just makes sense to download an app like Relai to buy bitcoin instead of buying gold certificates on an online brokerage or gold bars at a bullion shop.
While bitcoin shares many of the characteristics of gold, such as divisibility, portability, utility, and scarcity, it offers additional characteristics that make it arguably superior to gold.
For example, bitcoin can be transferred across borders within minutes for minimal transaction fees. Moreover, bitcoin can be easily bought and sold online. Moreover, the digital currency can be easily stored and no storage fees apply. Transferring large amounts of gold across borders is difficult and creates security risks, and storing physical gold is expensive.
But bitcoin is more than just digital gold.
Bitcoin is also money.
Think of bitcoin as money for the Internet age.
Bitcoin is an open monetary network that enables anyone with an Internet connection to store, send, and receive money in digital form.
The adoption of bitcoin as legal tender in El Salvador has proven that. Today, more El Salvadorans have a Bitcoin wallet than a bank account, highlighting Bitcoin’s ability to bank the un(der)banked. Moreover, El Salvadorans are saving substantial amounts of money on remittances by using the Bitcoin Lightning Network as opposed to traditional money transfer operators.
But El Salvador is not the only place where people are using bitcoin. Today, there are very few corners left in the world where people aren’t using bitcoin to make payments, send money across borders or hold it as a store of value.
Arguably the most powerful feature of Bitcoin is that the holder has full control over their money. No financial intermediates are needed to store, send and receive bitcoin, and there is no paperwork to fill out to open a wallet.
In that sense, Bitcoin is money and a savings technology for everyone.
The more people are waking up to this fact, the more people are buying bitcoin, pushing up the price of the digital currency.
To learn more about Bitcoin, read our beginner’s guide titled ‘What is Bitcoin?’ and our investor guide titled
Why We Are Bitcoin-Only
At Relai, we firmly believe that Bitcoin provides the best way to save money.
Bitcoin has been built in a way that its value will continue to increase as adoption continues to grow.
Whether individuals in emerging markets are using it to send and receive remittances or whether publicly-traded corporations are buying it as an inflation hedge for their balance sheets, the more bitcoin adoption grows, the more the value of bitcoin will increase.
Because there will only ever be 21 million bitcoin and the supply of new BTC into circulation slows down over time. As a result, bitcoin experiences increasing demand (as adoption continues to grow) that is met with a limited supply, which pushes the price higher.
We believe that this trend will continue and we want as many people as possible to benefit from bitcoin’s expected increase in value, which enables it to act as an excellent saving and investment vehicle.
There are hundreds of “crypto” apps out there that enable you to trade or invest in a wide range of cryptocurrencies, from meme coins like Dogecoin to Ethereum and others. However, unlike Bitcoin, the vast majority of cryptocurrency are highly speculative and were often only created to make their founders rich.
Moreover, most cryptocurrencies don’t have Bitcoin’s limited supply and hard-coded disinflationary monetary policy, which means they have not been designed to increase in value as adoption and usage increase.
Additionally, many cryptocurrencies have specific use cases, such as acting as access tokens to use a network or as voting rights in a crypto venture’s governance process. While the technological innovation delivered by these types of crypto networks may be exciting, they don’t offer the same promising investment case that Bitcoin does.
That’s why Bitcoin and “crypto” are not the same. Bitcoin is a unique and ingenious savings technology while “crypto” is a highly speculative asset class marred with scams and dubious incentive structures.
As a company, we have made the decision to only support Bitcoin because it provides the best way for individuals to save money.