Seven reasons why Bitcoin is becoming more popular
Bitcoin is a virtual currency that is significantly better in its characteristics compared to the traditional money and currencies that we use. The network, called the Bitcoin blockchain, is essentially software that allows you to manage bitcoins (BTC) and ensure their safety. The system is designed so that it is impossible to penetrate this network in order to steal your money.
The Bitcoin blockchain also does not allow to know the identity of users who can make transactions on this network. At the same time, the blockchain system records all your transactions – this reminds your personal accountant, who records absolutely all your financial activities in the ledger.
If more than 10 years ago, bitcoin was only a concept of a means of payment, now it has become an official payment method for many companies.
Bitcoin has become so popular that it is even traded on the cryptocurrency market, which has become a kind of addition to the traditional stock market.
Let’s analyze the main reasons for the popularity of cryptocurrency Bitcoin:
Banks build their reinforced concrete, and the money in them is in vaults with a very thick wall. Anyone with the tools can destroy such a physical repository. However, in the world of computers, you need an IT genius who has special skills or knowledge in the field of encryption technologies to crack a particular system. And such a specialist is not easy to find on the street.
However, even if you find such a specialist, and he knows how to hack the Bitcoin blockchain, hacking this system is still impossible, since it uses sophisticated cryptography, the decryption process of which requires ultra-fast calculations that modern computers simply can not cope with.
Knowing that no one can enter your account on the blockchain with your bitcoins, you can safely make transactions anywhere in the world. Besides the fact that your operations are safe, the Bitcoin blockchain allows you to settle accounts between the parties much faster than when using credit cards. Thus, you can make your payments with the click of a button on your device.
The cost of bitcoins increases as people and even states accept them – for example, in Japan, bitcoin was allowed for payments back in 2017. To say that bitcoins are very similar to traditional currencies is not enough, since cryptocurrencies in their capabilities significantly exceed them. Bitcoin growth also depends on market sentiment, while the usual law of supply and demand also plays an important role here.
The value of bitcoins is constantly fluctuating. We often say that bitcoin is volatile. As in the Forex market, this makes it possible for investors and traders to earn money. With the increase in the number of Bitcoin buyers, the value of the coin also increases. For such investments, the right timing for the investments is very important. If you invest at the right time, then you can become a millionaire overnight.
Despite the fact that all bitcoin transactions are registered in the public registry, specific information about who made the transaction will not be known. Thus, the key advantage of cryptocurrencies is their anonymity.
If you conduct transactions with Bitcoin, then you do not need to worry about the fact that confidential information pointing to you can fall into the wrong hands – including representatives of the authorities.
5. Speed, convenience, lack of borders
One of the many advantages of bitcoin is its relatively high transaction speed, while funds can be sent anywhere in the world where there is Internet access. Since bitcoins are not tied to a centralized system, the transfer of funds becomes much more efficient. At the same time, your cross-border bitcoin transfer will cost you real cents compared to sending money in traditional currency.
6. Influence, recognition, popularity
Since Bitcoin became known to the general public, it has become increasingly popular and has been widely covered by the media. Sites, newspapers, magazines, social networks and television often discuss bitcoins. There are even documentaries explaining what bitcoin is.
Now you will find many online and offline retailers that accept bitcoins as payments. Among these companies:
- Coinbase (gift cards Amazon, BestBuy, etc.);
- Microsoft Store
- Shopify et al.
7. Impossibility of fake
Bitcoin can be mined, although this requires expensive equipment and considerable energy costs. Many people and companies did / do this, but over time, the mining process has become more complicated. This is another reason why Bitcoin has become so popular.
At the same time, the process of mining bitcoins is what ensures network security. Bitcoin mining consists in solving a mathematical problem by computers, the answer for which should consist of a combination of 64 digits. After confirming this answer, bitcoin transactions are added to the blockchain registry.
Miners are rewarded for such work with new bitcoins, and this work also ensures that bitcoin transactions are not fake, but valid. It is such a process that helps all participants to keep a correct record of transactions, while the network does not have people who would use centralized authority to solve certain issues. This also suggests that the Bitcoin blockchain excludes the human factor, which, for example, could result in basic corruption, abuse and manipulation for everyone.
You probably now understand why Bitcoin has become so popular. The whole world became interested in Bitcoin, thanks to its unique concept – a currency with a decentralized system.
Bitcoin is also an excellent gateway to investment. It is clear that the higher the risks, the higher the reward, however, investing in bitcoins requires you to have sufficient knowledge about the crypto industry and investing in general.