There’s one thing that everyone’s been talking about for the past few years, and that’s Bitcoin. There is a chance that you have heard about it, and there’s even a chance that someone close to you has invested in it. The number of people interested in Bitcoin and investment in this currency is growing as time passes.
But why, you may ask? Why is this so popular, and why are people so interested in it? So many people are trying to open the doors to this world, and some of them are very successful about it.
But you may still ask why is it so popular today, and what is Bitcoin? We are going to give you answers to those and many other questions if you keep reading this article?
What is Bitcoin?
Simply put, Bitcoin is a cryptocurrency, and that means it is a digital currency that is decentralized, and it can be sent from user to user on the peer-to-peer bitcoin network. It doesn’t have a central bank or a single administrator, and there is no need for intermediaries.
The transactions are verified by network nodes through cryptography, and they are recorded in a public distributed ledger that is called a blockchain. It was invented more than 10 years ago, in 2008, and there is still no record who the inventor is.
There is only a pseudonym of that person, Satoshi Nakamoto, and many believe that there is a possibility that it was invented by a group of people. In 2009 its source code was released to the public as open-source software. You can get it by mining, a process you can do on your computer.
A vail of mistery has been wrapped around this cryptocurrency, and a lot of people have been against it. But that still doesn’t go against its popularity, and the more people don’t like it and the more they talk about it, it’s even more popular.
Some criticize it, some say it’s a speculative bubble, but we can all agree that it is something new, something interesting, and the thing that most of the people from around the world want to have.
How can you use it?
Bitcoin is the most popular cryptocurrency in the whole market, and there are many ways you can use it. According to CryptoProfit, it can be used as an investment, and a great possibility to earn money and profit from it.
It is also a great way to do anonymous transactions, to buy things online, and to pay for goods or services. You can trade it for fiat currencies. Or you can just hold onto it and wait to see where it goes. Whatever you do with it, it is sure that you will have some kind of profit if you do things wisely and smart.
Is it safe or not?
Well, we can say it is safe, and that’s one of the reasons why is it so popular among many people in the world. All off the transactions are public, which means that they are transparent, and they are available to the public, while the people involved in the transactions remain anonymous, and that guarantees their safety.
Another thing that makes it safe is the fact that it is encrypted and backed with a special system named blockchain. The encryption guarantees everyone using this cryptocurrency safe transactions, all of the personal information remains personal, and they are kept hidden.
And what’s important, if someone tries to hack the system, and even if they manage to hack it and get into the system, they can’t steal anything, there is nothing of value for them to steal. This is very important to know because that’s what most people are afraid of, but it is also one thing that makes this popular currency so safe.
There is almost no chance for the system to crash down because there are servers all over the world, and plenty of nodes that are keeping track of all the transactions that are happening on the system. That means that if something happens to one server or one node, it doesn’t matter, because there is another one that will replace it.
And again, it is so difficult to hack the servers, and if one server or one node is hacked, the hacker doesn’t have anything to steal. Many servers and way too many nodes are there to prevent hacking and secure your possessions.
The reasons why Bitcoin is so popular
We mentioned anonymity and the fact that you can use this cryptocurrency to pay for things or to send money anywhere in the world. One of the reasons why people it and why they use it is the fact that transactions are made with little fees. It is a rare form of transaction where you don’t need a big amount of money to cover the cost of it while paying for something.
Another thing that is responsible for the popularity is the stability. Yes, the value of Bitcoin goes up and down, and from the time that it was invented, its value changed a lot. But it still is more stable than most other currencies in the world, and there is a small chance that it will suffer from hyperinflation.
Scarcity is the main reason for its fame. If there is a big money supply or too small, there is a possibility of economic collapse, and that’s something that can’t happen with Bitcoin. The maximum and the total number of bitcoins that can ever exist in the world is only 21 million, and that will never be changed.
Bitcoin is still not perfect, nothing that has to do with currencies and transactions can be perfect, but it is something that tends to be exactly that. While dealing with it, you need to be careful. And like with any other form of investment, you need to think twice about it, and you need to learn about it.