Why Has Bitcoin Become So Popular?
Bitcoin is a virtual currency that’s as good as the traditional bills that we use. Because it’s already accepted, security features have to be embedded in the application or software that manages it. Many developers had designed the system that makes it impossible to break into it so that no one can steal your money.
Moreover, no one knows your identity in the Bitcoin application since it’s supported by the Blockchain system. A Blockchain system is responsible for recording all your transactions. It’s similar to an accountant recording your activities in the system with a ledger.
Recently, Bitcoin has been gaining a lot of traction not only in the financial world but also throughout every nation. From a simple concept, Bitcoin evolved into one of the official payment methods in many establishments.
It’s so popular that it’s even being traded in the market. In addition to the foreign exchange and the stock market, the cryptocurrency market was also born.
Here’s the reason behind the popularity of Bitcoin:
Right now, we have banks that are protected by concrete structures, and the money is kept in a vault with a very thick wall. Anybody with the right tools can destroy the physical vault. But in the cyber world, you need an IT genius who has special skills or knowledge in the encryption technology to hack into the system. It’s not just any criminal that you can pick from the streets to break into a cyber-security.
In dealing with cryptocurrencies, specifically Bitcoins, all of your activities are encrypted, and the encryption is also sophisticated to the extent that it would be impossible to hack it. That’s the kind of protection you’ll be getting from Bitcoin.
With this sense of security, you can do your transactions anywhere in the world. In addition to being secure, using Bitcoin is faster than using a credit card. Thus, you can settle your payments with a click of a button.
Since Bitcoins are already being officially accepted, its value has gone up, which is quite similar to the traditional currency. The value goes up since market sentiment to Bitcoin is good as more establishments accept it as official payment. Same as the law of supply and demand, the value goes up if demand is up.
There was a time that the value of Bitcoin rose to more than a thousand dollars. Imagine, if you bought Bitcoin at one dollar you could have been a thousand times richer. This caught the attention of a lot of potential investors.
People noticed that Bitcoin’s value is constantly fluctuating. Same as the FX market of trading foreign currency, they turn this into an opportunity to make money. As more and more people buy Bitcoin, it causes the value to rise. Right timing is very important in investment. If you invest at the right time, you could be an overnight millionaire.
Just a word of caution, when trading Bitcoin, make sure you’ve studied about Bitcoin first. Know everything and anything that you can about Bitcoin. Aside from the things you hear from other people, make sure that you also do your own research.
If you’re looking for a platform to trade Bitcoin, you might want to check out Bitcoin Code platform.
- Ability to be Anonymous
Even though all of the transactions in Bitcoin are published in a public ledger, the specific identity of who transacted it will be unknown. Thus, the key advantage of cryptocurrency is anonymity.
Because of this, it protects the people who transact with Bitcoin. You don’t need to worry about your personal privacy being invaded or personal info being made known to others.
One of the many advantages of Bitcoin is its faster speed to send money internationally. Since Bitcoins don’t circulate in a centralized system, transfers are made possible with more efficiency. On top of that, there will be smaller fees for transferring Bitcoin from one country to another compared to transferring traditional currency.
Ever since Bitcoin was known to the public, it has been getting more and more exposure and coverage from every kind of medium. It’s all over the papers, magazines, newspapers, social media, the internet, and television. There are also documentaries and movies made to explain Bitcoin.
Moreover, because of Bitcoin’s exposure, there are already numerous online and offline retailers that already accept Bitcoin as payment.
Here are examples of some establishments that accept Bitcoins as the official mode of payment:
- Coinbase (purchase gift cards from Amazon, BestBuy, etc.)
- Microsoft Store
- Shopify stores
- Inability to be Counterfeited
The thing about Bitcoin is that it can be mined. Bitcoin mining has many advantages. One of them is that you don’t need to worry about Bitcoin being counterfeited. This is another reason why Bitcoin became so famous.
At the same time, the process of mining a Bitcoin is also the creation of a security feature on the Bitcoin simultaneously. To mine Bitcoin, you need several computers to solve a mathematical problem. Once you solve the mathematical problem, you should get a 64-digit combination. Afterward, once the answer is validated, the Bitcoin transaction gets added to the ledger.
Mining doesn’t only push new Bitcoins into circulation, but it also makes sure that a transaction is valid. It helps everyone keep a good account of all transactions while not having a centralized authority to check it for you.
Now, it should be clearer to you as to why Bitcoin has become so popular. With the unique concept it introduces – a currency with a decentralized system – many people have become interested in it.
Bitcoins are also a gateway for potential investments. However, always remember the basic rule of investing, “the higher the risks, the higher the reward.” To ensure that you’re making the most out of your money when investing Bitcoins, always have sufficient knowledge in the world of cryptocurrency.
Now, not only has it caught the interest of people, but it’s already on its way to being recognized as an official currency without a country associated with it.