Billionaire investor Mike Novogratz recently labeled Bitcoin as “Digital Gold” further fueling the fire to the frenzy surrounding it, which was already at a fever pitch, especially since Bitcoin hit an all-time high this week. This comes as no surprise as its value has skyrocketed over the past year, making millionaires out of those that adopted early.
But what exactly is Bitcoin? Here’s a quick rundown for the uninitiated: Bitcoin is a form of electronic money that holds a prominent position in an ecosystem of cryptocurrencies. It is decentralized which means that unlike modern fiat money, Bitcoin is not controlled or backed by any bank or central government authority. It also relies on a technology system called blockchain that keeps your bitcoin wallet safe and also eliminates the need for any middlemen, cutting down transaction costs involved.
Now the crypto space has been a fairly volatile courtyard. However, despite recent price volatility and global macroeconomic uncertainty, 2020 continues to be a big year for Bitcoin. Due to the availability of various software and apps, one can make the most out of the rapidly changing dynamics of this market. Also, you don’t even need to be an active trader as something such as abitcoin digital website can always come in handy as it makes use of Artificial Intelligence (AI) and Machine Learning (ML) algorithms to aid in maintaining profitability by adjusting to changing market conditions. A safe haven for new investors, if you will. So whether you’re more of a mere spectator watching its development or simply a Bitcoin novice, here are 4 reasons why you need to start taking the Bitcoin evolution more seriously?
The value of traditional currencies is always subject to inflation. However, this is not the case with Bitcoin.
The design of Bitcoin involves a limit to the number of Bitcoins that can be in existence, which is capped at 21 Million. This limit effectively makes Bitcoin inflation-proof, giving it a massive advantage over fiat currencies and allowing it to retain its value.
This also means that the more people use it, the higher the demand will be. However, as there will ever only be 21 Million Bitcoins in existence, high demand could lead to the coins being scarce, driving its value upwards.
No Third-Party Involvement
The entire Bitcoin transaction system is purely peer-to-peer. This means that users experience a greater degree of freedom than they would with traditional currencies.
There’s no involvement of any third party. Government or financial intermediaries have no way to interrupt user transactions or place freezes on Bitcoin accounts allowing for a more secure and free experience.
All transactions made with Bitcoin are transparent and available to the public even if the people involved are anonymous. Therefore, no one can cheat, scam, or otherwise fraud the system. Not only that but they’re also irreversible, so once you get your Bitcoins, or sell them, no one can demand their money back.
Bitcoin is also pseudonymous, allowing you to keep your identity hidden. Since it is decentralized as well, it makes it less vulnerable to security and more resilient and efficient.
Additionally, once the payment has been made, there is close to no chance of fraud. It allows you to safely send your money to the required address without any intervention. Further, with Bitcoins, there is no chance of misplacement of coins either.
Easy Accessibility and Availability.
The process of performing transactions with Bitcoin requires minimal elements. All you’ll essentially need is a smartphone and internet access. It is particularly beneficial in countries where physical banking is a hurdle or close to impossible, like in developing countries and far-flung areas.