Bitcoin and other cryptocurrencies have only existed for more than a decade, and yet, in a short span from their conception, they have already become known around the world. The majority of the population of known countries like the U.S. and Japan are aware of its existence. More and more people are opening their doors for this new form of currency. Merchants and retailers now accept these digital coins. Even known individuals in popular business sectors have invested or are planning to invest in cryptocurrency.
What is cryptocurrency?
A cryptocurrency is a form of digital currency that uses cryptography which makes it almost impossible to cheat or counterfeit. This currency utilizes blockchain technology, a public ledger that allows data storage to a series of computer networks. Blockchain technology ensures the integrity and transparency of data while maintaining its security features. One of the best features of cryptocurrency is its decentralization. It has no central server, and it is not governed by the government or central authorities. Therefore, it cannot be manipulated, regulated, or controlled.
Bitcoin is the first cryptocurrency ever created. It was created by a person or group of individuals named Satoshi Nakamoto in 2008. It was first launched in the market in January 2009. It was not used as a trading and exchange back then until 2010. The first-ever purchase using cryptocurrency was in 2010. The person uses $10,000 crypto coins to buy two boxes of pizza. To this day, this amount would have been $100 million.
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Despite the popularity of cryptocurrency, it has still become a subject of speculation by critics due to its high volatility. But this matter does not hinder some users and fanatics in patronizing the said digital currency. In fact, even known establishments and businesses have invested in Bitcoin and other cryptocurrencies. Elon Musk, CEO and co-founder of Tesla, have invested an amount of approximately $1.5 billion and also announced that their company will accept crypto as a form of payment for car purchases. And as of today, there are more than 10,000 cryptocurrencies in the market, according to CoinMarketCap.com.
The impact of cryptocurrency on business trends is undeniable. More and more people are attracted to invest in it, and its increasing value entices many.
Here are the underlying reasons why cryptocurrency has gained popularity worldwide.
Lower Fees. Most financial institutions are known to charge fees for almost every transaction. From credit card purchases to opening a bank account, all these transactions incur charges. Cryptocurrency offers lower transaction fees compared to regular banks and financial institutions, which makes it an ideal choice for online transactions and purchases.
Cryptocurrency is decentralized. Given that cryptocurrency is not owned, controlled or regulated by the government, it serves as an advantage for some investors who want to protect their wealth from inflation and economic downfall. This is one of the reasons why cryptocurrency’s value has continued to rise over the past few years.
Potential Profit. The large returns of cryptocurrency investment continue to attract investors worldwide. Buying crypto coins for a low price guarantees profit once the price rises. In fact, if you invested in cryptocurrency since it was first launched, you could have earned millions by now.
Convenience. Cryptocurrencies are easier to use at all times. More and more companies and merchants are adapting digital currency as payment for online purchases. It is also easier to make financial transactions. As cryptocurrency gains popularity over time, more people are going to adopt this form of currency in the coming years as its features become more and more desirable.
Security. The technology of cryptocurrency is so sophisticated that it makes it impossible to counterfeit. For people who seek security over their personal information, paying online using cryptocurrency is safer than using the traditional form of payment. Its security feature is one of the reasons why the cryptocurrency is so popular.
Continuous Growth. Over the years, cryptocurrency’s value has continued to rise. Its scarcity and limited supply make it valuable as time goes by. The volatility of crypto is an advantage for some investors out there. It is true that its price may drop on a large scale, but it can also increase and reach an all-time high, just like what happened in April last year. The possibility of cryptocurrency becoming a valid or legitimate form of payment may happen in the future due to the increasing number of businesses and institutions that welcome it.
Numerous Options to Choose From. As of this moment, there are 10,000 cryptocurrencies in the market since Bitcoin was first launched. Previously, only those miners were able to obtain cryptocurrency. But now, you can easily obtain crypto through crypto exchanges. These multiple exchanges offer varied prices and desirable features. This gives you the opportunity to diversify your portfolio. There is crypto for everyone for those who want to try our trading, short-term or investment. There are lots of crypto exchanges to choose from. Besides Bitcoin, we have Ethereum, Dogecoin, Ripple, Bitcoin etc.
Not just a currency but a popular investment. Although some experts warn us about the risks of crypto investment, this doesn’t stop some people from investing in the said currency. Even large establishments and known businesses have bought shares and hold long term investments. In 2017, Bitcoin’s value was just a few $100. And now, it has reached an all-time high price of $65,000 this year. This large digit has tempted people into investing. Most known cryptocurrencies have followed this trend and growth in market value.
There are several reasons why cryptocurrency has gained popularity worldwide. Finally, people view cryptocurrency as the future of money. It has set high standards of an ideal financial institution. Although it is not backed by the government, it still remained resilient over the years, and its potential is becoming more and more evident over time.
Disclaimer: This article does not encourage cryptocurrency investment for those who lack or have little knowledge about it. Due to its volatility, it is recommended that you seek advice from experts and do thorough research before trying out to invest or trade.
