People are going crazy about Bitcoin and other cryptocurrencies primarily when their prices have suddenly increased this year. Despite its downward movement last year, Bitcoin has gained a high price increase that made hundreds earn more than a hundred percent.
Because of Bitcoin's popularity worldwide, may insights are on the internet. Some say Bitcoin's price will hit rock bottom while there are those who say otherwise. But no matter how many critics claim that Bitcoin is a bubble that’s about to pop, it continues to rise just like stocks.
That said, here are some reasons that contribute to the popularity of Bitcoins even in the future:
1. Bitcoin is Being Used and Accepted Globally
The rise of Bitcoin usage across the globe has skyrocketed because more business entities have accepted Bitcoin as a mode of payment. For instance, Ecuador, Colombia, Venezuela, and other parts of South America have used Bitcoins to trade their services and goods.
With Bitcoin, you can also buy gift cards that you can use to purchase items online. Even if you don't have a bank account, you can use Bitcoin as a mode of payment for online shopping. Aside from the convenience of paying online, Bitcoin is accepted globally for the following reasons as well:
● Media Coverage - People are becoming aware of many things because of press releases, and this includes Bitcoin. Because of the news issued by the press on Bitcoin-related matters, the public has acknowledged Bitcoin's existence. Also, websites giving honest reviews on crypto trading like the-news-spy.info helps educate people on the process of cryptocurrency trading and the tools they would need.
● Thought Leaders - When big and famous names like Richard Branson, Steve Wozniak, and Bill Gates started endorsing Bitcoin, people began to notice and invest in Bitcoins as well. Since people trust these key leaders, they also believed in Bitcoin's technological revolution.
● Government Tolerance - Although there are countries that oppose the use of Bitcoins, a lot of countries like Japan are already recognizing cryptocurrencies to be legally used in paying for goods and services. And when the government is involved, more people acknowledge it.
● Big Players - Large investors and big companies use Bitcoin for their businesses and investment. It's an excellent opportunity for people in the industry to use Bitcoin because of its benefits in their business. Using Bitcoin for business transactions has minimal cost, as well as fast and secure. All purchases made are also trackable. Especially when businesspeople and investors are operating in different parts of the world, many of them choose to use Bitcoin.
2. Bitcoin's Blockchain Technology Offers High Security
Bitcoin cannot be faked, cheated, or outsmarted because it has a strong core backbone, which is the blockchain technology. It is the foundation of Bitcoin transactions, and it is highly secure and developed for the cryptocurrency field. Blockchain technology has a proven track record of maintaining billions of dollars worth of goods on its decentralized, immutable, and incorruptible digital ledger.
The system of Bitcoin prioritizes the security of its network. Bitcoin is secured from hackers because its transaction process is complex. The use of a cryptographic algorithm verifies each transaction from the histories stored on every computer in the network. After verification comes the approval of the transaction, its processing by the system, then its completion.
Blockchain technology had been designed for people who don't trust others to have a tamper-proof and secure way of sharing data. Especially with investments for your future, blockchain can help in securing your retirement fund, for instance. The reason behind this is due to the innovative software rules that cannot be easily manipulated as Bitcoin miners have agreed on shared history or what they call a consensus protocol. Also, the use of each block's cryptographic fingerprint makes it unique for every transaction.
Moreover, sophisticated math is used when storing any data. Thus, hackers wanting to change any transaction details entered in the blockchain must also alter every transaction previously entered before the target information.
3. Bitcoin's Technology is Transparent
Although it's difficult to link the individual user to the public address used in cryptography behind the blockchain technology, it's still considered transparent. It's because you can view the transactions of every public address.
Blockchain is a database that is distributed to the network of users operating the Bitcoin software. Each completed Bitcoin transaction is recorded on the blockchain permanently, and is open publicly to the network users. This means all transactions are transparent and visible to every user, enabling them to track and trace their transactions while users’ identities are secured. All network users are accountable for their actions.
This transparency in technology without having to reveal an individual’s identity makes Bitcoin very attractive to many people, especially for those who put a prime on their privacy.
4. Decentralized System
The decentralized filing of data on the internet is more likely organized than the centralized filing of data. Decentralized filing protects the files from being hacked or lost as you can access and track your whole transaction history in the system. Without going to the bank or involving a third party, you can transact or send money to anyone you want.
When trading with Bitcoin, the blockchain allows you to control your transactions without the need for approval from central authorities. When there are central authorities, transactions may undergo an unfair process. But with a decentralized system, you no longer need a middleman to assess or approve your transactions.
Moreover, a centralized system requires service charges rendered by these third parties. But with a decentralized network, third-party fees are eliminated. Thus, the cost of transacting comes cheaper as you and the other party are the only ones directly involved in a transaction. Fast transactions and little to no fees certainly contribute to Bitcoin’s long-term popularity.
Conclusion
Bitcoin is universal; its social equality and its global economic growth are bottomless. With the use of Bitcoin, all users can transact payments instantly, anytime and anywhere. All users must acquire better knowledge and understanding of how the currency can impact the global economy, and what to do to make the new form of currency safe, secure, and trusted for financial transactions. Thus, it's expected that Bitcoin is not going to be out for the next few years, but it will be more accessible and acceptable worldwide.
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