I have a strong passion for cryptocurrency and investments. I have over 3 years worth of experience in it. I am not a financial advisor.
As early as 2008, news of Bitcoin was already circulating around certain online channels. At that point in time, Bitcoin was the only decentralised currency available, but not many were aware of its existence yet. It was not until 2017 where Bitcoin started to gain some real traction. The ATH (All-Time High) was as high as $20,000, a huge increase from $900. Ever since then, Bitcoin has never been the same again.
So, why is Bitcoin gaining popularity?
How Does Bitcoin Work?
Before we answer the question of why Bitcoin is so popular, let’s get the basic understanding of how Bitcoin works.
Until now, the real identity of Satoshi Nakamoto still remains a mystery. Is he an individual or is he a group? The next question is, why is Bitcoin so popular now?
The most valuable thing about Bitcoin is the fact that it is a decentralised currency. What this means is that no one entity actually owns Bitcoin. So, if no entity owns Bitcoin, then how do we verify whether transactions have already been made and are accurate?
This is where Bitcoin miners come into the picture. Miners rely on machines known as ASIC (Application Specific Integrated Circuit) to verify whether transactions have been made accurately. ASIC will generally perform calculations and if the result they calculated is correct, it will create a block. This block will then be uploaded to the network and will not be able to amended or removed. Hence, the name blockchain, as it is a chain of blocks.
Of course, computing all these calculations require tons of hashing power, which is why miners get rewarded in Bitcoin if they produced a correct block. Back in the earlier days, it was possible to mine Bitcoin using desktops or even laptops, however, as the difficult keeps on increasing, it is now nearly impossible to mine on those devices.
This is why an ASIC is required to help out with mining. An ASIC is essentially an extremely powerful system that is able to only do one thing that it was programmed to do. Depending on the type of ASIC, it can be used to mine Bitcoin or many other alternative coins (Altcoins).
So, really, why is Bitcoin so popular?
Why Is Bitcoin So Popular?
Bitcoin is becoming more and more popular due to the convenience that it brings.
First, it is the first currency that has no allegiance to any country, so the currency can be used in any country without the fear of forex exchange fees. As long as the merchant accepts Bitcoin, you can rest assured that there will be no forex fees.
Just imagine in the future, when we are travelling, there will no longer be a need to exchange our home currency to the other country’s currency.
Another key benefit of cryptocurrency is it being private. What does this mean? In simple terms, no one knows who the wallet belongs to. Every Bitcoin wallet does not have a name tagged to it, and users are freely able to create as many wallets as they desire. Some of the information that are present in any bitcoin transactions include the transaction ID, BTC amount and also the date and time stamp. That’s all, nobody can tell if that wallet belongs to you or not.
In comparison, when you create a bank account, your name is tagged to that bank account. Any transaction in or out will be made known by the bank because it’s tagged to your name.
Cheap and Fast Transfers
Sure, there are no Forex fees, but there are still feels that has to be paid when a transaction is made. If you move funds in bulk from one bank to another, then Bitcoin is a great choice for you, as the fees for transferring large funds is considerably cheaper than when you move them through banks.
Speed is another winning factor for Bitcoin too. After you have received at least 6 confirmations, your funds will be ready to be spent on the receiving wallet.
Confirmations are made through miners, who will do their part to ensure that the user has indeed sent a certain amount of Bitcoin.
Less Fraud Risks
As Bitcoin is not controlled by any centralised entity, nobody will be able to manipulate the Bitcoins circulating. And as it is entirely digital, there will not be a scenario where the sender sends fake currency to the recipient.
Is It Worth To Buy Some Bitcoin?
To put it simply, yes, it is worth it to buy some Bitcoins.
With so many upsides to Bitcoin, there are simply no reasons not to invest in Bitcoin and holding it until it reaches a price that is acceptable to you.
As they say, do not put all your eggs in one basket.
So, instead of just investing purely in the stocks market, why not put some eggs into the cryptocurrency market?
The only time when I discourage people to buy Bitcoin is if they are looking at Bitcoin as a get-rich-quick scheme. Bitcoin has never been marketed as a get-rich-quick scheme, and you should never trust someone who promises amazing returns by investing in Bitcoin.
If you are someone hoping to be a millionaire overnight through investing in Bitcoin, then I would highly suggest you to not invest in Bitcoin as you will get burnt.
Treat Bitcoin as you would any investment, always do your own due diligence and never trust the community in terms of when to buy or exit. You should decide that on your own.
I am not a financial advisor and this is not financial advice. Please, always do your own due diligence when it comes to investing.
Bitcoin ATH Price Comparison
Less than $0.01
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- How Does Bitcoin Mining Work?
Bitcoin mining is the process by which new bitcoins are entered into circulation, but it is also a critical component of the maintenance and development of the blockchain ledger.
- What is bitcoin? - CNNMoney
Bitcoin is a cryptocurrency created in 2009. Marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies.
- Bitcoin Definition
Bitcoin is a digital or virtual currency created in 2009 that uses peer-to-peer technology to facilitate instant payments. It follows the ideas set out in a whitepaper by the mysterious Satoshi Nakamoto, whose true identity has yet to be verified.
Some say bitcoin could reach as high as $50,000 next year. Although that seems extreme, it's not out of the question if investors move money from other assets into world's most valuable virtual currency.
- Bitcoin's Price History
Bitcoin's price history has been volatile. Learn how the currency has seen major spikes and crashes, as well as differences in prices across exchanges.
- Satoshi Nakamoto - Wikipedia
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2021 Muhammad Shairazi