Why is Bitcoin becoming popular
5 min reading
Did you know why bitcoin is still going strong? Keep reading if you want to get the answer!
Why is Bitcoin becoming popular nowwhen it has been around
for several years
As you know, bitcoin is the first and the most successful crypto in history. Bitcoin’s capitalization is worth at the time of writing approximately around a trillion dollars, setting a new price record. Bitcoin (BTC) was launched by developer Satoshi Nakamoto in 2009 and has held the lead for 12 years. Although bitcoin has been experiencing ups and downs through the years because of the volatility of the cryptocurrency market, we cannot deny its importance to the economic sector. In the article, we explain the advantages of bitcoin and why it is so popular now.
Bitcoin value is affected by many factors and its future depends on big businesses such as whales. Important to note, the cryptocurrency market is quite unpredictable as there is no special institution to regulate its price rates. Many organizations are now investing in bitcoin and accepting this cryptocurrency as payment. Bitcoin is becoming more and more popular, and there are now 370,000 transactions a day with this crypto-asset, up from 100,000 a few years ago. Unfortunately, the bitcoin network can confirm no more than seven transactions per second, so the user has a choice: either pay additional fees to the miners or wait for confirmation.
Besides, we want to focus on the obvious advantages of bitcoin and explain why it is an investment opportunity to consider as the coin has come a long way to become what it is now.
Cryptocurrencies differ greatly from any other assets because of a range of factors. For instance, they use blockchain, making them a competitive alternative to bank transfers, electronic payment systems, and even government money. Compared to existing financial instruments, cryptocurrencies offer some advantages. Most cryptocurrencies operate in a decentralized manner, according to their algorithm. There are no state authorities to control their issuing and circulating; all communication nodes have the same rights and are equal to each other. The algorithm in networks such as Bitcoin cannot be changed by anyone, not even the developers. Moreover, cryptocurrency transactions have a high processing speed. In addition, once a transaction is added to the blockchain, it becomes irreversible. The irreversibility of transactions prevents tampering with records and fraud in the system.
Also, the crypto community considers privacy one of the main benefits of cryptocurrencies. No personal details are required to use the system, allowing a better level of privacy, financial institutions or marketing companies. Only by knowing the private key, the person has access to the wallet. In other words, no one can deduct coins from an account or freeze their movement. Cryptocurrencies can be a means of protecting one’s capital in case a bank declares bankruptcy.
Buyers put their personal information at risk when paying for goods and services since it can be intercepted and exploited later. Indeed, the merchant receives no personal information in cryptocurrency transactions, so you can be sure that the information will not fall into the hands of malicious parties. Bitcoin is said to be very secure because it is based on blockchain technology. Moreover, the security of its algorithms is constantly being improved, which guarantees a high level of protection for your assets. So, to date, despite the huge stakes, no one has managed to hack this technology, and you can safely make transactions anywhere in the world. Many organizations and shops accept payments in BTC, which is quite convenient. This means that you can make payments at the touch of a button on your device.
Many countries around the world have recognized crypto-currencies as a means of payment. Thus, they regulate the crypto-industry at the legislative level in their countries and impose taxes. In addition, investment funds and companies such as Grayscale, MicroStrategy, and Tesla are investing vast amounts in crypto-currencies. Belarus, Malta, Switzerland, Japan, and Singapore are crypto-friendly countries.
Bitcoin has become an excellent investment opportunity because of its global capitalization around the world. You may have heard that bitcoin is a very volatile asset. This is true, but on the other hand, it is an advantage, which makes trading interesting. After buying and selling the asset at the right time, you can potentially make big gains. If you want to increase your chances of success, you should research all the information before trading or investing in crypto-currencies, as there is always a possibility of losing money due to the risks of fluctuations in the crypto-currency market. However, the rapid growth and development of the crypto-currency industry have many financial experts, such as JP Morgan, saying that the price of bitcoin will rise, and thus it could become an extremely profitable investment.
Let’s consider the main risks of investing in virtual currency to avoid unwanted problems in the future. For instance, assets may be subjected to theft or loss as a result of carelessness. If an attacker gains access to an investor’s private secret key, they can steal the entire contents of the digital wallet. The computer’s hard drive can also break down and one wrong move will result in the deletion of the secret key file. Another reason is the Lack of security. One of the biggest risks is that any institution or authority does not protect the virtual currency. Absolutely all national currencies around the world are backed by government assets. For instance, electronic currencies are backed only by the assets of the companies that created them. Cryptocurrencies, on the contrary, have no such security!
Moreover, there are Cyber-security risks and fraud possibilities exist. Hackers can hack into virtual currency trading platforms. Since Bitcoin’s inception, its acceptance has grown exponentially, making it the most popular virtual currency used around the world. Unfortunately, as cryptocurrencies grow in popularity, the number of scammers looking to make money from them also increases. According to statistics, phishing is a popular scam today.
Finally, it should be said that you should not open unverified sources to avoid being a victim of phishing. High volatility. Bitcoin’s value fluctuations, in general, are almost unpredictable in the short term, and this adds to its riskiness. The problem of network scalability also seems serious and not fully resolved. Network bandwidth has long been a concern, and rising fees make small transactions not entirely profitable.