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5 reasons why you should opt for bitcoin
What is Bitcoin? How does it work?
Created in January 2009 by Satoshi Nakamoto, Bitcoin is the world’s largest cryptocurrency by market capitalization. It functions on peer-to-peer software and cryptography. Each Bitcoin is a computer file that is stored in a digital wallet.
All Bitcoin transactions can be tracked on the blockchain which works like a shared public ledger. The complete Bitcoin network is founded on the blockchain. Miners can add blocks in this blockchain network to secure the Bitcoin transactions.
These blocks store information of all transactions. It also contains a unique identifying code that is allotted to each transaction. Once this block is linked to the blockchain, anyone who wishes to view it can have access to the transaction details.
Importance of Bitcoin in Global Economy:
Bitcoin has been rightly described by Vigna and Casey as “a groundbreaking digital technology with the potential to radically change the way we conduct banking and commerce and to bring billions of people from the emerging markets into a modern, integrated, digitized, global economy.” Today investing in Bitcoins has been legalized in several countries like the U.S, the U.K, and Canada. In September 2021, El Salvador became the first nation where Bitcoin has got the legal status. This proves that Bitcoin is gradually gaining acceptance in the world market. At the time of its inception, it was met with a lot of cynicism. It was mainly because it was a completely novel concept that people were not familiar with. The use of paper currency has been in circulation for a very long time and people did not have any idea of “digital or virtual” currency.
The increasing popularity of Bitcoins among investors over the years is proved by the fact that in 2019, when one Bitcoin was sold for less than $ 150, and today to buy a bitcoin you need to pay $62,000. Today it is considered as digital gold. In the entire financial history, there hasn’t been such rapid growth in such a short period as seen in the case of this cryptocurrency. Bitcoin offers security, confidentiality, and flexibility in monetary transactions.
Five main factors that make bitcoin investment a favorable deal:
- Fraud proof: Once transactions are recorded on the blockchain, they cannot be altered or deleted. Also, before it is added to the bitcoin blockchain, it is required to be verified by a majority of Bitcoin owners and the unique codes assigned must match the correct encryption pattern. The codes are long and random. According to the Forbes ADVISOR, “this level of statistical randomness blockchain verification codes, which are needed for every transaction, greatly reduces the risk that anyone can make fraudulent Bitcoin transactions.”
- No physical barriers: The decentralized nature of Bitcoins ensures that there is no external intervention of government or central authority. Each owner has control on his transactions and financial freedom minus any interference from any financial institution, like a bank. This currency can reach to any part of the globe transcending geographical barriers and can be accessed by anyone who has an internet connection.
- Fast transaction speed: On an average, it takes between 10 minutes to an hour to conclude a Bitcoin transaction. It depends on a few factors like online traffic and the time an operator takes to process the transaction fees. But, you do not need to bear a hefty transaction fee if you make your transactions online with Bitcoin, as most of the banks charge a high fee for the same.
- Low transaction fee: No involvement of financial institutions or government results in Bitcoin transaction costs being considerably lesser than routine bank transfers.
- Owner anonymity: Unless the wallet address of the user is made public the transactions cannot be traced back to them. This ensures privacy and confidentiality for the owner, unlike the traditional transactions where a third party can have access to your financial information.
Like all financial transactions, Bitcoins have their pros and cons. There are many user-friendly apps like thebitcoincode.io that offer a seamless trading experience and help make your venture a profitable one. It is a trusted platform and used by many major investors.
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