Cryptocurrency is digital money that can serve both functions: a store of value and a medium of exchange. Bitcoin is a decentralized digital currency, and among the most popular digital assets in the world. It is a decentralized digital asset and its creation and management are regulated by cryptography, rather than a central authority, and this helps control the creation of new units and secure its transactions. Bitcoin first came into the picture in 2009 by Satoshi Nakamoto. So, if you have plan to trade Bitcoins, you might consider visiting reputable websites like Guerilla Coin for more latest news, updates and guides about cryptocurrency.
Bitcoin and Ethereum might be more popular, but there are over 5000 varied types of cryptocurrencies in circulation. Bitcoin and Ethereum (Ether) have been the two most popular cryptocurrencies since it all started in 2009. Aside from Bitcoin, Ethereum, and Ripple XRP, several other popular cryptos exist, but their value and popularity have generally waxed and waned. But, what makes Bitcoins such a popular option among cryptocurrencies? Read on and find out!
- 1 No middlemen are involved in transactions
- 2 Very high prices, and thus, great investment worth
- 3 An ideal exchange medium
- 4 Billed as the currency of the future
- 5 A Safer option
- 6 Conclusion
No middlemen are involved in transactions
The enigmatic Satoshi Nakamoto created the single cryptocurrency — bitcoin — with the intent to give mankind a universal digital currency in which users could trade values without any middlemen. Bitcoin was the first blockchain — financial one — created by an individual (or a group, as it is known) named Satoshi Nakamoto back in 2008. Bitcoin is regarded as the original digital currency, with its launch in 2009 being the start of the cryptocurrency phenomenon.
Very high prices, and thus, great investment worth
Bitcoin is unique – considering the fact that just a finite number of this currency is there: 21 million. The prices of Bitcoin and other cryptocurrencies fluctuate widely, which some experts believe limits the utility of Bitcoin as a transaction medium. As more people learn about the scarceness of an asset, there is increased demand, which leads to higher prices. Since Bitcoin holds over half the market cap, Bitcoins price fluctuations may impact other currencies.
The Bitcoin PUT option has also allowed a single cryptocurrency, bitcoin, to solidify its position as the safest store of value, increasing its popularity to astronomical levels. Due to its increasing popularity and value, in the years following its release the world saw the coming of many Bitcoin clones.
An ideal exchange medium
Bitcoin has immense value in terms of medium of exchange platforms. Alternative cryptocurrencies may have a different usage which generates value, such as Ether, or improve on its model. If Ethereum is more like oil, Bitcoin is like gold in terms of digital value and market capitalization.
Without going through a financial institution Bitcoin can be transferred between individuals – another reason why it is so unique. The digital asset is not subject to government or financial institution control and can be used to purchase goods and services.
Billed as the currency of the future
Due to certain important factors, Bitcoin is expected to be the king of cryptocurrencies in the future. Bitcoins are increasingly being held as investments, probably more than hundreds of other cryptocurrencies out there, and are being used to buy software, guns, illegal drugs and more. It has grown in popularity since 2009 and has been used as a means of payment for a variety of goods and services. As of February 2019, there were over 100,000 active Bitcoin addresses.
A Safer option
With the network size growing, it will be increasingly difficult for any single person to make changes to the network and the blockchain code. The core design of BTC is becoming more and more complex, and therefore safer and safer, with each passing day. A direct and accurate connection can be established in a safe way between the physical and the digital space, and a transaction may be regarded as irreversible once it gets confirmed several times.
All these factors have helped single bitcoins cement themselves as one kind of money, but do not explain bitcoins exponential price rise and unique allure as a store of value. Another explanation for why there are so many cryptocurrencies involves the tremendous success that Bitcoin, and only some altcoins, have enjoyed.