Bitcoin has witnessed an unbelievable surge in its popularity in the last few years. In its initial years, with the kind of response that digital asset had garnered, no one could have believed how popular it would eventually be globally.
Bitcoin was the first-ever virtual currency introduced in 2009 by Satoshi Nakamoto as an alternative to the traditional fiat currency. With not many people understanding this new concept, this currency got a rather tepid response from investors and traders alike. Although the entire digital currency market is a volatile one, yet while you invest in Bitcoin, the financial loss is not that much more, as compared to the other types of coins.
Despite the static initial phase, Bitcoin has gained momentum, especially after 2017. The increase in the number of people willing to invest in Bitcoin has been massive. Governmentshave also started the process of adapting their laws to include Bitcoin. Banks and businesses have started incorporating crypto trading as part of their financial transactions. Even if there were resistance level at times, now the case of Bitcoin has again surged in popularity, and it is going to stay like this for the next few years.
Here we shall analyze the causes that have spurred the global interest in Bitcoin and the resultant increase in its popularity for trading and investment purposes.
- Decentralized nature of Bitcoin
Bitcoin was introduced as an alternative to the traditional fiat currency that has always been controlled by governments and financial institutions. The functioning of Bitcoin is based completely on decentralized blockchain technology. Peer-to-peer transaction without any third-party interference is the core of Bitcoin. It is one of the techniques through which people know the idea of what a safe-haven asset is.
Besides the removal of a central authority, decentralization has made transactions foolproof. Once a transaction detail is stored, it cannot be changed or deleted. Also,the other nodes can easily identify that computer from where the alterations are being attempted.
The ability of the transaction owner to be anonymous and the knowledge that all your transaction details are safe has encouraged an increasing number of people to invest in Bitcoin.
- Accessible to all
A traditional financial transaction can be done only if you have an account with a financial institution. For those who do not have access to banks, any type of monetary transaction is not possible. Bitcoin transactions can be done by anyone across the world who has a strong internet connection.
- Affordable rates
The absence of a central authority means that Bitcoin knows no barriers, be it physical or political. In fiat currency transactions, cross-border transactions are expensive as they include transaction fees charged by the banks. Bitcoin can be transferred to any part of the globe at minimal costs.
- Unaffected by inflation and currency value
Inflation affects all economies, big or small. Investing in Bitcoin is a safe way of keeping your wealth protected against inflation rates. If you pay for a product in a currency stronger than your currency, it may be a disadvantageous transaction for you. The value of Bitcoin is uniform across the globe. So, when you send money via this virtual currency, the value remains unchanged.There is a historical trend that Bitcoin follows, and this closely includes the stock-to-flow pattern and this is a very ambitious outlook, but this pattern is also essential for the overall popularity of the Bitcoin in the global market.
- Easy availability
The emergence of online cryptocurrency exchanges, trading apps, and brokerages has simplified the process of Bitcoin trading. You need to open an account with a reputed exchange. Once the verification process is complete, you can buy Bitcoin with fiat currency and start trading right away.Bitcoin Era is one such trusted app that has enabled hundreds of crypto traders to enjoy againful trading experience.
- Immune to political unrest
When a country experiences political turbulence, its economy takes the worst hit. The value of the currency plummets. Bitcoinis seen as an option to safeguard your financial assets in such troubled times.
Bitcoin has become one of the most preferred modes of financial transactions in recent times. With its unique features that make transactions easy and cost-effective, this is a currency that is here to stay. Its popularity is expected to increase multi-fold with its greater acceptance in the global economy.