The world today has become a digital play, and the ways of doing things have changed enormously. It is a way of doing business, connecting with friends and family, learning, and especially trading has changed a lot. Advanced technology has emerged, and it changed the way of making payments. Earlier people used cash whereas as of now advanced technologies have provided us new way and ease of making online payments. The trading has been possible using the electronic payment system. Trading online is now promising using payment services. You must check advfn.com to trade bitcoin online and get the maximum profits out of bitcoin trading.
Cryptocurrencies are virtual digital assets that follow a person-to-person system and are highly used as a medium of exchange. The blockchain technology used in most cryptocurrencies uses cryptography to create new units as well as protect the transactions. Cryptocurrencies are a great alternative to traditional currencies as they follow a decentralized network.
Bitcoin: the World’s First Cryptocurrency
In the world of cryptocurrencies, bitcoin became the first modern digital currency invented in 2009 by a mysterious programmer named Satoshi Nakamoto. Satoshi planned to build an electronic payment system that is not dependent on government or financial institutions and is entirely decentralized. He focused on creating a decentralized network that is independent of central authority or servers.
In 2009 when Bitcoin was introduced, people didn’t understand its underlying technology, i.e., blockchain, but over time, it gained a considerable reputation across the world and became the first modern cryptocurrency. Many developers tried creating cryptocurrencies but failed despondently.
What led to the popularity of bitcoin and other cryptocurrencies?
Just like traditional currencies, bitcoin has value. No doubt, its market is highly volatile, and its value keeps on fluctuating a lot. The main reason behind the skyrocketing value of bitcoin is its pervasive usage across the world. Many businesses and individuals are using bitcoin as a payment method instead of traditional currencies. Most consumers are using bitcoin because of the high convenience and ease of bitcoin and ultimate security that blockchain technology offers.
Cryptocurrencies like bitcoin are gaining colossal popularity become a plethora of customers are accepting bitcoins in their businesses. Through this, trading has become a lot easier and more possible. People are choosing real estate companies, businesses, and even coffee shops that accept bitcoin payments. By looking at the growth rate and value of bitcoin, bitcoin’s value may rise with more retailers and businesses accepting it as a payment method.
Let us move forward and know the precise causes of its popularity:
Quick and cheap transactions
Bitcoin is not dependent on central authority and banks, and this means there are no intermediaries. With no intermediaries being involved, no transaction fee is charged when compared to traditional currencies. While transferring funds through banks internationally, banks usually charge huge fees as transaction fees from both the sender and receiver and take several days to complete the transaction.
Transferring funds through bitcoin is a much easier process as it takes only some minutes to complete the transaction, and a nominal transaction fee is involved. This has become bitcoins are accessible worldwide, and there are very few restrictions or laws while completing transactions.
Highly volatile market
The government and its community do not control the bitcoin market, and its users control it. Therefore the bitcoin market is extremely volatile, and it behaves according to demand and supply. A volatile market can make you lose all your bitcoins and pertinent bitcoin investing and trading methods; many investors have made excellent gains. Investors tend to invest in bitcoin at fewer prices and sell them when the price rises.
The reason for the volatile market of bitcoin is the various doubts related to the legality of bitcoin. Despite its volatile market, it has a significant impact on businesses and is expected to become the most popular cryptocurrency.
Less risk of fraud
Most investors are attracted to bitcoin because it is digital, and this factor is quite appealing to traders and investors. Also, there are no fraud issues because it has no physical appearance and is not controlled by a central authority or financial institutions.
