What is Bitcoin and why is cryptocurrency so popular?
Bitcoin has been the buzzword in the financial space. In fact, Bitcoin has exploded onto the scene in recent years and many individuals and large companies are now jumping on the Bitcoin or cryptocurrency bandwagon wanting a piece of the action.
People who are completely new to the cryptocurrency space constantly ask this question; “What is Bitcoin really?”
Well, for starters, bitcoin is actually a digital currency that is outside the control of any federal government, it is used all over the world, and can be used to buy things like food, drinks, real estate, cars, and other things.
Why is Bitcoin so important?
Bitcoin is not susceptible to things like government control and fluctuations in foreign currencies. Bitcoin is backed by the full faith of (you) the individual and is strictly peer-to-peer.
This means that anyone completing transactions with Bitcoin first realizes that it is much cheaper to use than trying to send money from one bank to another or using any other service that requires sending and receiving money internationally.
For example, if you wanted to send money to, say, China or Japan, you would have to pay a fee from a bank and it would take hours or even days for that fee to get there.
If I use Bitcoin, I can easily do it from my wallet or my cell phone or a computer instantly without any of those fees. If you wanted to ship, for example, gold and silver, it would require a lot of guards, it would take a lot of time and a lot of money to move the bullion from one point to another. Bitcoin can do it again at the touch of a finger.
Why do people want to use Bitcoin?
The main reason is because Bitcoin is the answer to these destabilized governments and situations where money is no longer as valuable as it used to be. The money we have now; the paper fiat currency in our wallets is worth nothing and a year from now it will be worth even less.
We have even seen large companies showing interest in blockchain technology. A few weeks ago, a survey was sent out to a handful of Amazon customers about whether or not they would be interested in using a cryptocurrency if Amazon creates one. The results of that showed that many were very interested. Starbucks even hinted at using a blockchain mobile app. Walmart has even applied for a patent for a “smart package” that will use blockchain technology to track and authenticate packages.
Throughout our lifetime we have seen many changes in the way we shop, the way we watch movies, the way we listen to music, read books, buy cars, look for houses, now how we spend money and banking. The cryptocurrency is here to stay. If you haven’t already, it’s time for anyone to take a deep dive into cryptocurrency and learn how to take full advantage of this trend that will continue to thrive over time.