A year ago, BTC was trading at $400. Today, it’s around $15000. This is an excellent indicator that cryptos have a bright future. So what is bitcoin? And why has its popularity increased in recent years? Instead, bitcoins are transferred directly from one person’s “digital wallet” to another’s without any pesky middlemen involved.
Gone are the days of going to a bank, waiting in line, and asking for money. Banks make their money by charging fees to process transactions and lending money out to people. Unfortunately, they also launder money at their discretion. Banks will lend out your hard-earned money to someone they deem “creditworthy” and charge you exorbitant interest rates (typically 7%) while you watch your savings dwindle into the nothingness of the bank’s profits. Bitcoin is different because it allows you to transfer any bitcoin from anywhere in the world at no cost. It can be sent from any computer or mobile device running the bitcoin application software program directly to anyone else with a bitcoin address.
Factors that acknowledge about increasing popularity of bitcoin
1. Supply of bitcoin in the market:
The total number of bitcoins that can ever be mined is limited to 21 million, suggesting that the supply will increase in future years. Moreover, this number is adjusted by 1,600 every hour and will never be more than 21 million. So now you know that the probability of bitcoin going out of circulation is higher, which is why the supply will continue to rise.
2. Demand for bitcoin:
People are willing to trade their old currencies for something new and innovative because they want their money to grow within no time. But, on the other hand, people get bored with their old currencies because if they keep them in their possession, it’s like wasting money every day. Moreover, many people are also getting confident about bitcoin, which is the only reason for its demand.
3. Store of value:
Bitcoin has already proved that it can be a great store of value since it’s fluctuating very little than gold. In addition, Bitcoin can allow you to make a transaction despite not being controlled by a third party or government. The popularity of bitcoin is increasing because many online business firms have accepted it open-handedly. Also, bitcoins can be sold using 1k daily website in exchange for traditional currency if they’re done using it to make purchases.
4. New millionaires are getting created with bitcoins:
When bitcoin was first introduced, many wealthy people didn’t give it much importance, but now they realize its value, and they’re investing more in bitcoin. We can witness the same type of revolution in the late 90s when dot-com stocks gained popularity. This gave a boost to the popularity of bitcoin.
5. Large merchants are now accepting bitcoin:
The famous online store now accepts bitcoin as a form of payment, increasing the popularity of bitcoins worldwide. In addition, PayPal has started accepting bitcoins, and this has become a good sign for the users of bitcoin that they can use it anywhere in the world.
6. Dedicated network for processing payments:
Bitcoin is decentralized, so there’s no central processing unit where transactions are processed, unlike banks or other financial institutions. Instead, transactions are processed on a network that anyone in the world can access. Therefore, there’s no way that a transaction could be reversed or fraudulently charged.
7. Open source:
Unlike other payment networks, bitcoin is open source, and it means that anyone in the world can enter into it and contribute towards improving it further. There is no authority of anyone on the BTC, and you can work on it without anyone’s permission. Of course, it is good to have a bitcoin wallet in case you want to transfer bitcoins later when you need them. However, bitcoin eliminates the need to have your wallet in terms of security as your bitcoins are stored in what’s known as bitcoin wallet software.
8. No chargebacks:
This means that every transaction made with any online retailer can be paid for without requiring any additional verification from the purchaser, reducing fraud risk and chargebacks. This is how bitcoin remains a secure and efficient payment network for people worldwide.
