Cryptocurrencies are those virtual assets that are used as a good medium of monetary exchange. In recent years, cryptocurrencies have become an easy option to choose from instead of the traditional currencies as these are the followers of a network that is not centralized. However, among different cryptocurrencies, Bitcoin is the most famous one.
In addition to Bitcoin, there are other altcoins like Ripple, Litecoin, Ethereum, Safemoon, Dogecoin, and many more that have become popular. Thus, today, there are more than 4000 cryptocurrencies. What makes Bitcoin so popular is its value and market cap. It is estimated to be more than $1 trillion, and the number of users. If you think that why Bitcoin is so famous, let’s discuss the main factors that influenced the growth of this cryptocurrency.
About Bitcoin: The first-ever cryptocurrency
Bitcoin is the first digital currency in the world of cryptocurrencies. The cryptocurrency was invented by a programmer named Satoshi Nakamoto in 2009. Satoshi wished to create a system of electronic payment that is completely decentralized and does not depend on the government or any other financial organizations. Thus, he tried to create a decentralized network that does not depend on any server or the central authority.
Hence, in 2009 Bitcoin came into existence. At first, people could not understand the technology under this, but with time, it became very popular across the globe as a modern cryptocurrency.
The reasons behind the popularity of Bitcoin
Similar to the traditional versions of currencies, Bitcoin also has no value. Though we know that the bitcoin market is extremely volatile, and its value fluctuates, it is still very famous. The main reason behind its high value is its pervasive use across the globe. Many businesses are now shifting their focus on choosing decentralized payment medium. The processes are hassle-free and faster. Moreover, many consumers prefer using bitcoin because of its ultimate security offered by blockchain and high convenience. So, let’s take a closer look at the reasons for the growing popularity of bitcoin over the years.
- Volatile nature of the market
The government and other financial organizations cannot control the market of bitcoin, but it is the users who are in control. Thus, the market nature of bitcoin is highly volatile, and it usually behaves as per the supply and demand. The volatile market can lead you to lose all your bitcoins, whereas, with the proper knowledge regarding bitcoin’s investment and trading methods, you may have made amazing gains. Many investors usually invest in bitcoins at low prices and sell them when prices increase.
The cause of this volatile nature of the market is different types of uncertain factors related to the uncertainties regarding the legitimacy of bitcoin. Though its market is volatile, it has a powerful impact on different businesses and has the potency to become one of the most popular forms of currencies.
- Easy, Quick, and cheap transactions
As bitcoin does not depend on the central authorities and banks, there are no intermediaries, hence there is no processing fee or transaction fees. As those transaction fees are transferred through the banks, the banks charge a large amount as transaction fees from both the receiver and sender. It also takes several days to complete the transaction process.
The reason Bitcoin is gaining popularity is that the transactions are decentralized. There is no intervention. The notable feature of Bitcoin is that blockchain-based transaction platform has minimal transaction fee and is faster. These easy, quick, and less expensive transactions make bitcoin more and more popular.
- Very minimal risk of fraud
Many investors choose bitcoin because it is completely digital and very appealing to investors and traders. Also, there is no risk of fraud because there is no physical presence, and is not controlled by any financial institutions or central authority.
Therefore, transferring funds using bitcoin is a much easier process, and it takes very minimum time for a transaction. So, all of these exceptionally great qualities have made bitcoin really popular worldwide, and people are choosing this unique method to do their transactions. So, four crypto trading rules offer various opportunities to the users to use bitcoin more and more and live a successful and wealthy life.