While writing this, I asked myself, why this type of cryptocurrency is so popular? And the most important question that amazed me when I was learning about bitcoin: What fascinates other people especially the prominent one? After research and survey, I had come up with these items below that attracts programmers, consumers, businesses, prominent people like Bill Gates, Peter Thiel, Winklevoss brothers, individual investors, kids, and more:
- Decentralized – it is controlled by no one. Nobody can manipulate or corrupt it (not even governments or financial institutions).
- It’s volatility is so exciting than stocks – Yes! that is why many people invested on bitcoin. Sometimes it soars up like 100% or more making investors, traders and simple users rich and sometimes its value falls down suddenly like massive collapse. Changes in bitcoin price are realtime like a little later as 1 minute, it’s value changes up to $4-$10.
- Convenience – Send and receive your bit in minutes anywhere as long as you have internet.
- Secure – transmission of bitcoins cannot be intercepted because of its cryptography and secured hashing technology. Not like an ordinary paper money or money in a bank, it can’t be stolen unless the thief got your private key(read here about wallet). Blockchain cannot be attacked by anyone over the internet due to its strong algorithm. Blockchain does not include any personal information in a transaction other than the address. Not like in credit card, paypal/payment services, and bank payments transactions for which the user’s personal information is being stored somewhere which are vulnerable to hackers and theft attacks.
- Cheaper fee – sending bitcoin doesn’t cost big fees like any other payment platforms and services.
- Market – It is now being accepted in the public and even by governments. There are many establishments that accepts bitcoin as a payment.
- Influencers – support of big time influencers and enthusiasts like Bill Gates, Peter Thiel, Winklevoss twins etc. contributes a huge impact on bitcoin community and bitcoin trading. Since these highly respective and successful people supports bitcoin, people’s trust on bitcoin became higher.
- Easy to setup – You can start using bitcoin with few steps I listed here.
- Scarcity – bitcoin has limited supply of 21,000,000. This value will be reached at year 2041. Bitcoin can be generated only through mining. At the time of writing, 12.5 bitcoins can be generated for every blocks discovered by miners. Tendency is, people are running into buying and hedging on bitcoin.
- It is the first and largest cryptocurrency.
Why Bitcoin is valuable?
It can solve problems that other markets have. It also represents a potential solution in less developed countries. Less developed countries doesn’t have enough banks, credit cards, and payment systems. With Bitcoin, you just need a wallet and basic knowledge about it and bitcoin. No need of any 3rd party processor. Using bitcoin also saves time on transmitting huge amount of money from one country to another.