Why Bitcoin? It is a massive success story with unprecedented growth, Bitcoin could pave the way for a cashless society in not so many years.
Bitcoin originated from a technology base rather from a banking system, that is why it is uniquely different. Bitcoin caused one of the biggest shocks in the financial markets when it was released in 2009. It was the first currency not to be regulated by any government, organisation or any single entity. It is a virtual currency.
The Bitcoin has been the worlds fastest earning currency every year since it was invented. Such has the value increased that it has even outperformed gold.
When asking why Bitcoin? you need to understand how it works and what it can do. The value of a Bitcoin today is around 800 US dollars. (Check today’s Bitcoin value here) Firstly, you can purchase a Bitcoin or a fraction therefore from an online exchange. You cannot walk in to a bank and buy one, it is a virtual currency, it cannot be held in you hand but you can put it in a digital wallet. That wallet is stored on you PC or your mobile phone. Be aware that people have lost Bitcoins due to computer crashes but you can back them up, most people do that to their mobile phone or online cloud.
Transactions made are recorded on a blockchain and shared on millions of computers around the world. It works in the way of a peer-to-peer collaboration using cryptography based on mathematical formulae for integrity and security. Blocks are calculated and mined every 10 minutes and the list of transactions is updated and time stamped. The security is inherent from the way the blockchains are stored. In order for a hacker to compromise the system they would need to simultaneously hack every computer on the chain.
Bitcoin is regarded as an international currency, it does not belong to any one country. You would think that it would secure from snoopers but it does not work like that. Each transaction is recorded with real identities but they are not attached to the blockchain. It is not completely anonymous because addresses can be linked to all transactions made.
Many people are turning to Bitcoin as their currency because individuals anywhere in the world can use it online. History tells us that the value of Bitcoin has increased beyond any currency so why would people not want to use it. Transactions can be made across borders with ease and without having to pay excessive bank charges. The banks are not involved with Bitcoin. There are transaction fees for trading in Bitcoin but typically they are around 2% which is far lower than a bank would charge for a foreign exchange transaction.
Bitcoin allows people to be in control of their finances. There are now Bitcoin ATM’s in many countries where Bitcoins can be exchanged for local currency. Also Bitcoin is widely accepted as a currency by many major organisations, as that increases it is easy to see the attraction of using Bitcoin.
We have seen electronic technology take over the world with massive benefits to emerging economies. The benefit of foresight can be seen but seldom imagined. You will never see a Bitcoin but in the virtual world it has already become a great benefit to millions of people.
In years to come we may see people paying for their shopping or a beer using their mobile phone. It is possible that the future may be for a cashless society.
Investing in gold has always been a safe haven but now there is another lucrative option for investors. Bitcoin investment could be here to stay.
We hope you enjoyed our why Bitcoin? article.
Update: As of June 2017 Bitcoin has been trading at more than $2,500 dollars.
Update: As of August 2017 it has been trading at more than $3,000.
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Disclaimer: This article only represents the author’s opinion and should not be taken as investment advice.