Those who know about cryptocurrencies surely know about Bitcoin since this was the first digital currency to spearhead the revolution. It had been originally developed in 2008 by an anonymous hacker using the pseudonym Satoshi Nakamoto. Despite recent crashes, the space for Bitcoins still exists and its popularity after a decade has not faded.
Why did Bitcoin come about?
The main idea behind Bitcoin was to create a system that would let buyers bypass conventional financial institutions via a peer-to-peer platform. Online payments could thus be sent directly to parties without having to go through financial institutions like banks. So, Bitcoin is an online adaptation of cash that you can use for buying products and services. However, not all stores will accept Bitcoin and some nations have even banned it altogether.
How did Bitcoin become so popular?
The blockchain is a public ledger in which all transactions are recorded. So you can trace the history of Bitcoins, in order to prevent people from spending coins not owned by them or using copies. People had been initially skeptical about the use of Bitcoin as they felt buyers would not be keen to use virtual money. But these doubts have now been laid to rest as more and more consumers have taken to digital currency.
- One of the biggest reasons for its popularity has been anonymity or privacy. Ever since the Snowden leaks, people have been living under a constant security threat and are reluctant to entrust their data to government corporations. Bitcoin is anonymous and allows consumers to cut down their digital footprint as they can buy goods without exposing their identity.
- Bitcoin has grown in popularity as more and more companies have been accepting it. Earlier, it was being used only for private transactions of small amounts, or for online gaming purposes, and illegal activities. But things have changed today and it is being acknowledged as a widely-accepted currency used by big brands. Companies like WordPress, eBay, Reddit, OkCupid, and Intuit are using Bitcoin.
- With Cryptocurrency, you do not need to ask for permission to use this cryptocurrency. It is simply software that you can download free of cost, and once you install it; you may send or receive bitcoins and other such cryptocurrencies. The software applications like the bitcoin revolution help the ineffective trading of cryptocurrency.
- More than anonymity, buyers are concerned about online security. The recent data breach incidents at Target and many other renowned corporations have shown how vulnerable customer financial data is. But with cryptocurrency, you get to make purchases without having to submit your financial data for public viewing. The transactions are protected by a blockchain or decentralized ledger and this means that Bitcoin wallets will not be exposed each time there is a digital transaction.
- Transactions are propagated almost instantly and they can be confirmed in a matter of minutes. These take place using a globally-spread network of machines and this has nothing to do with your physical location.
- Despite the ups and downs in prices, Bitcoin values have remained more or less stable and it is his stability that accounts for its popularity in the cryptocurrency market.
- As Bitcoin uses complex technologies, it is unlikely that it will be outsmarted by anyone; you will need serious skills in order to conduct a digital heist to dislodge Bitcoin. The Bitcoin funds are locked in a cryptography system where only the owner has the private key to send the Bitcoin. So, transactions are completely secure.