Bitcoin is a cryptocurrency or a digital currency that works without any central or government control or interference. There are various cryptocurrencies. All of them have their values that fluctuate from time to time.
As we all know that among all the cryptocurrencies Bitcoin is the most popular one.
Bitcoin’s value is touching new heights every single day. Do you know why bitcoin is growing so fast? Well, it is because many investors are investing big amounts in bitcoin.
Do you know that Bitcoin is also compared to digital gold? Well, this is because it is considered to be the earliest cryptocurrency Moreover, this digital currency is the biggest exceeding $1 trillion. Another important fact that is considered about bitcoin exceeding $1 trillion is that the supply of bitcoin is limited. Only 21 million bitcoins can be mined, so everyone wants to take advantage of the limited supply.
Advantages of Bitcoin in today’s era
Following are some of the advantages of bitcoin that everyone should be aware of:
- Easier Payment Method: Payment with bitcoin is easy to send and receive from any corner of the world and anytime without any interruption. Bitcoin is not bound by any bank holiday, borders, or anything.
- Fees Freedom- There are no fees for bitcoin like other payment methods. The fees have no relation with the amount that has been transferred, which means one can send 100 bitcoins and the fees will be the same even if the person sends 1 bitcoin.
- Less Risk For Merchants: Bitcoin is widely known for safe, irreversible transactions. They even do not contain any one’s personal information that secures merchants from loss by fraud or chargebacks. Moreover, in bitcoin, there is no need for PCI compliance.
- Full Control Over Charges: A person who owns a bitcoin or even a part of bitcoin is completely in control of their transactions, which means no merchant can force unnecessary charges like other payment methods. Bitcoin transactions can be made without any personal detail or information which means no identity theft. Another thing that adds to it is that any bitcoin holder can protect their crypto with encryption and backup.
- Transparency and neutrality: Every piece of information regarding bitcoin (its supply, price, etc.) is already there on the blockchain and hence anybody can verify and access that information in real-time. Not even a single person or organization can make changes or control the protocols of bitcoin as the method of bitcoin is secured cryptographically. This level of security encourages trust among its users that the bitcoin is fully transparent, unbiased, and predictable.
Why Bitcoin is popular?
Bitcoins transactions are used on an everyday basis by ordinary people, whereas other cryptocurrencies are still far from the idea of real-world and hence bitcoin is considered to be more reliable and valuable.
Bitcoin is a trailblazer, which means that it is considered to be the new mode of currency and technology in the real world, and that too very soon which is also resulting in the Bitcoin price increase.
Another reason why Bitcoin is popular and reliable is that is it more accessible among people. There are more hardware and more software that support bitcoin than any other cryptocurrency. It also has the biggest developer ecosystem.
As Bitcoin is widely accepted and its usage is growing in several unexpected ways, we can say that Bitcoin prices will increase even more in the next coming years.
How bitcoin price is affected?
Bitcoin price is directly related to supply and demand. As the demand increases, the price will also increase parallelly and when the demand decreases, the price will fall automatically. As mentioned, there is a limited number of bitcoins that are circulated, and new bitcoins are generated at an expected or decreasing rate.
Therefore, the demand for bitcoin should follow this intensity of inflation to keep the bitcoin price steady as the price of bitcoin is quite small as compared to what it could be in the future.