If you were asked why Bitcoin has Become Such a Big Deal, what will be your answer? I had about bitcoin and took years before giving it a try. Like many, I was disturbed by the increased cases of bitcoin scams. Besides, no one could precisely explain to me what exactly bitcoin is.
However, I had an experience that washed away my fears and opened my eyes to this new currency. I was seated next to my brother when he initiated a bitcoin selling transaction. Within minutes, he received the money. I became more curious and vowed to learn more. Surprisingly, I am one of the most outstanding bitcoin traders in my locality. Do you trade bitcoin? Maybe you’ve had it, and you want to try. However, overcoming the fears might be challenging. But why fear? According to one survey, individuals are very concerned about the surge in bitcoin’s popularity in recent years. What if the popularity is on merit? Well, this blog discusses the reasons why bitcoin has become such a big deal. Let us see.
Timely transactions
If you have ever received payment in bitcoin, you agree it is one of the fastest ways to receive and send payment. Depending on the security measures adopted, it might take even a minute to open and close a transaction. It is absolutely a thrill trading with bitcoin as far as time constraint is concerned with any investor. The fact that it is paperless with no middlemen gives bitcoin an edge against other currencies, including the dollar and euro. A lot of time can be saved when transacting with bitcoin. The bitcoin market operates 24/7. Imagine being plagued with an emergency in the middle of the night! Will you go to the bank or sell your bitcoin online?
Reduced security issues
Bitcoin is one of the safest means of transacting. As earlier mentioned, there are no middlemen involved in the transactions. Unless you want to deal with brokers, middlemen are not necessary. A transaction is only between the receiver and the recipient of the coins. Several security measures can be adopted to protect the bitcoin wallet. For instance, you can use two-step verification with Google authenticator to verify logins and transactions.
Additionally, some sites change the bitcoin address of clients after a certain period to prevent hacking by scammers. Nevertheless, this does not mean you cannot be scammed. There are cases where individuals have made significant losses. For instance, some sites have collapsed with millions of investments. The point is, bitcoin transactions are relatively safer, hence attracting many investors.
What is the primary function of a currency? If you thought of storing value? You are correct. However, a suitable currency should meet all the basic money requirements. These are transportability, durability, divisibility, and counterfeit ability. Bitcoin meets all these requirements appropriately, and that is why it has become a big deal. Let us look at some of them.
Divisibility
When bitcoin was launched a decade ago, the developers stated that its circulation would be capped to 21 million. I am sure you are wondering why this small value. But do you know bitcoin can be divided up to 8 decimal points? For your information, the least significant unit is 0.000000001 Bitcoin, specifically a Satoshi. The fact that the smallest unit is in 8 decimal points means that quadrillion units of it can be distributed across the world economy.
A single bitcoin has bigger divisibility compared to the US Dollar and other fiat currencies. A dollar can only be divided into cents, specifically 1/100 of a dollar. In contrast, a Satoshi is 1/100000000 of a bitcoin. The scarcity of bitcoin is attributed to this extreme divisibility. In case it continues to appreciate, individuals with the smallest units can also take part in daily transactions. In case divisibility was impossible, do you think it would have been possible to transact with bitcoin? The currency would not have been used in many transactions. This is because 1 BTC would be equivalent to about $10,000.
Utility
The success of bitcoin is attributed partly to the utilization of blockchain technology, a disseminated ledger system dispersed in trustlessness. This implies that a party to a bitcoin market does not need to develop trust with the other party for the system’s efficiency. This works because of the established system of checks and verifications that allows maintenance of the ledger and mining. Moreover, its flexibility implies that it equally has utility beyond the cryptocurrency space.
Transportability
Due to cryptocurrency transactions and wallets, bitcoin transactions can be executed and closed within minutes. Read more here Instant Loan besides, the cost of the transactions can be meager, irrespective of the sizes. Incontrovertible transferability is a critical aspect of any currency. People do not need a physical representation of the coin in mining and maintaining the blockchain, though electricity cost can be high.
Durability
One of the most critical aspects of fiat currencies is actually their divisibility. Undeniably, a dollar bill can be worn or declared unusable. In contrast, bitcoin is a digital currency not predisposed to wear and tear. This makes it highly valuable. The fact that it cannot be destroyed similarly to the dollar bill gives it an edge. Nevertheless, this does not mean that bitcoin is 100% safe or cannot be stolen. For instance, losing your cryptographic key means the coins currently in your wallets are not utilizable permanently. Nevertheless, the bitcoin itself will be recorded on the blockchain. Although you cannot use it, it continues to exist within the records.
The Bottom Line
The popularity of bitcoin continues to surge daily. It is actually the most outstanding currency across the world at the moment. This blog has discussed several reasons why bitcoin has become a big deal lately. In case you are contemplating investing in bitcoin. Do not hesitate. This is one of the safest investment options out there. You only need to be careful not to be scammed, just like in other investments involving currencies. The best way to enhance your safety while transacting is to learn the top bitcoin scams and safeguard yourself against them.
