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.
The launch of Bitcoin opened the gateway for entry of new cryptocurrencies. Thus, today, there are more than 4000 cryptocurrencies. However, among those, Bitcoin continues to enjoy top slot . With the valuation of $1 trillion Bitcoin is the most valued cryptocurrency. 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. 2009 was the founding year of Bitcoin when Satoshi Nakamoto introduced it. Satoshi wished to create a system of electronic payment that is completely decentralized in nature 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 were unable to 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
We know that the bitcoin market is extremely volatile in nature, and its value fluctuates a lot. It is still very famous. The main reason behind its high value is its pervasive use across the globe. Many people and businesses are using bitcoin as a payment method instead of those traditional currencies. 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 are not able to control the market of bitcoin, but it is actually 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. The working of the cryptocurrency market is almost the same as the stock market, except that Bitcoin is a more volatile market.
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. For this reason, no transaction fee is charged as compared to the traditional currencies. 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.
On the other hand, transferring funds through bitcoin is a far easier process, and it takes only several minutes to complete the process of the transaction. Moreover, a minimal transaction fee is required for the entire process. These easy, quick, and less expensive transactions are making 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 any financial institutions or central authority does not control it.
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 across the world, and people are choosing this unique method to do their transactions. So, bitcoinup is offering various opportunities to the users to use bitcoin more and more and live a successful and wealthy life.