Are you wondering why Bitcoin’s popularity keeps rising? If so, here’s why this virtual currency’s fame continues to grow.
Satoshi Nakamoto, the Bitcoin’s creator, wanted Bitcoin to serve as an alternative currency. This virtual currency is a form of peer-to-peer online money, meaning individuals or enterprises transact directly. Bitcoin doesn’t involve intermediaries like governments and banks. Instead, it uses an independent network comprising decentralized computers or nodes.
The Bitcoin network runs on the blockchain using cryptography to validate transactions. According to Satoshi, Bitcoin’s primary purpose was to facilitate online payments that users would complete directly without a financial institution.
However, the absence of a central regulator or intermediary has made Bitcoin a highly volatile crypto asset. Consequently, individuals and institutions trade it on platforms like the bitqs. Also known as cryptocurrency exchanges, these platforms allow users to purchase and sell digital coins using fiat money.
Bitcoin trading on crypto exchanges is a popular activity, with some people making good money. However, trading Bitcoin requires innovative tools and strategies. Bitcoin’s volatility means you can lose a significant amount of your hard-earned money within hours. At the same time, you can make good money by purchasing Bitcoins at a low price and selling them once the value increases.
Also, some people invest in Bitcoin by purchasing the coins and holding them in their crypto wallets for an extended period. Eventually, they can sell their coins once the value increases to make profits. Such activities are partly the reasons for the rising Bitcoin’s popularity. Here are more reasons for the constantly growing popularity of this virtual currency.
As a payment method, Bitcoin facilitates instant transaction settlements. With a smartphone, computer, or tablet, you can access the internet and start transacting with this Bitcoin via your digital wallet. And because you don’t involve intermediaries like banks and other financial service providers, you can complete a Bitcoin payment instantly.
Instant settlement is the reason more people want to transact with Bitcoin. No matter the location of the person you’re transacting with, Bitcoin allows you to transfer funds to their crypto wallets directly. And a Bitcoin transaction takes minutes, which is not the case with bank transfers.
The government or central bank owns the fiat money in your physical wallet or bank account. Consequently, these central authorities can confiscate your cash or freeze it. With Bitcoin, you own the digital coins in your crypto wallet. And only a person with your crypto wallet’s private key can access and spend or transfer the coins in it.
Perhaps, the most endearing trait of this virtual currency is that no central authority controls it. Consequently, you can even use Bitcoin without paying taxes.
Many individuals compare Bitcoin to gold. That’s because its protocol limits the number of digital coins circulating in the world. Miners can produce a maximum of 21 million tokens only. Consequently, this scarcity increases Bitcoin’s value, and crypto experts predict that this trend will continue until miners generate all 21 million digital coins.
But unlike gold, people can use Bitcoin more quickly due to its portability. Also, thieves can steal your gold bars if they know you’re carrying them. Thus, Bitcoin is scarce and safer than gold.
Many people love Bitcoin because it eliminates intermediaries like governments and banks that slow down transactions while increasing costs. Also, this virtual currency gained popularity when celebrities like Elon Musk, Bill Gates, and Gwenyth Paltrow endorsed it. Additionally, several merchants like MicroStrategy and PayPal announced their decision to accept Bitcoin. Crypto exchanges and other digital platforms have also emerged, allowing individuals and enterprises to convert fiat money into Bitcoin and vice versa. Such developments continue to popularize Bitcoin combined with its increasing value and adoption.