Is Bitcoin worth all the hype?
BY READERS DIGEST
5th Jan 2022 Technology
Although there are thousands of cryptocurrencies prevalent in the market, Bitcoin has made its mark by outrunning all the others.
Despite being invented in 2009, the cryptocurrency has shown its upsurge only in recent times. People across the world have actively started investing in Bitcoin. Moreover, a big hype bubble has been created around this cryptocurrency boom. The concept of cryptocurrency was created to eliminate the function of banks or intermediaries in transactions. Hence, Bitcoin is based on a system that allows users to make transactions with cryptographic validation instead of physical proof.
Moreover, all the transactions made using Bitcoin can be found on a public ledger, that can be accessed by anyone across the world. Due to this systematic approach, transactions made using Bitcoin cannot be forged or undone. Now people across nations can buy or sell goods without the need for a middleman (banks). However, many speculations are revolving around this concept, since there is no institution or government behind it, owing to its decentralized nature. There are many digital applications available using which users can exchange Bitcoins, such as the Immediate Edge.
Why is Bitcoin so popular?
The concept of decentralization of capital is the major reason behind this sudden upsurge and demand for cryptocurrency. There is also another benefit of using Bitcoin for your transactions. Users possess the ultimate power over the flow of your funds. Through Bitcoin, only you can access your funds and Bitcoins for the transaction. Nobody else can access or make use of them. This means no government or authority can freeze or confiscate your Bitcoin assets. Moreover, since there is no middleman or bank involved in Bitcoin transactions, it is a lot cheaper than conventional methods.
Additionally, Bitcoin opens the door to the world of digital currency to everyone. This means that anyone, beyond what they are capable of, or whether they are viable to banking systems or not, can access Bitcoin, and execute transactions using the cryptocurrency. Users can execute this type of transaction in a hassle-free way. You just need a computer or a smartphone; no permission, to trade in cryptocurrency is needed. With the fast-changing pace of the world, many institutions, firms, and services are accepting Bitcoins as a payment option. Hence, you can utilize Bitcoin to buy a car, book your flight tickets, and so on.
How does Bitcoin work?
Users often think Bitcoin is vastly different from the traditional banking system. However, both currencies have a few similarities in their functioning. Like banks, Bitcoin has a ledger in which all the transactions made by users across the globe are recorded. But, Bitcoin is very transparent and accessible to all users. Similarly, the currency system of Bitcoin is highly safe and inaccessible to anyone except the user. This makes fraudulence and misuses almost impossible.
Moreover, while creating a Bitcoin wallet, the process is similar to opening a bank account. To activate dealing in cryptocurrency, you must furnish a source that can fund your Bitcoin wallet, like a bank credit card. The software also requires you to validate your identity for the same. In this Bitcoin wallet, you can store all your Bitcoins, which you have mined or bought. Also, the fees charged for each of your transactions may add up to a big amount. So watch out when you execute your cryptocurrency transactions. One Bitcoin is comprised of 100 million minor elements called Satoshi. If you cannot afford to invest in whole Bitcoins, you can purchase or trade-in fractions of the currency.
Why all the Bitcoin excitement is true
Although the hype around Bitcoin is real, you must beware of the serious risks associated with trading and investment. Due to fluctuating demand and extensive use, Bitcoin is highly volatile. The value of Bitcoin went up from less than USD 150 to around USD 62,000 within the year 2021 alone. However, the scarcity of Bitcoins has immensely increased its demand. This situation will arise because only 21 million Bitcoins can ever be created and will ever remain in circulation. With passing years, the surge in the demand and value of each Bitcoin will also increase due to the growing number of users and the capped amount of Bitcoin creation.
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