Bitcoin is the world’s famous cryptocurrency that is becoming more famous by increasing its usages. Millions of bitcoin users use bitcoin for trading, investing, mining, accepting, and sending payments. There is 21 million bitcoin on the network, and the market capitalization is in billions, which is very high compared to other cryptocurrencies. Already there are a lot of bitcoin users, but it is attracting more and more investors to invest in bitcoin. This article will talk about the top five significant reasons or strengths of bitcoin that attract many investors.
What is Bitcoin:
Bitcoin is a popular cryptocurrency that came into existence in 2008 by a person named Satoshi Nakamoto. Bitcoin came into existence to solve the fiat currency problem, but people are using it for multiple purposes because it is a decentralized currency. Decentralized currency means that currency which no one can control over it. The price of bitcoin was less than one dollar at the time of launching, but the current price of bitcoin was 62,487 US dollars at writing this article.
Top five features of bitcoin that attract more investors:
There are the following top five features that influence more and more investors to invest money in bitcoin cryptocurrency given below:
No one can control:- The first and significant feature of bitcoin is that no one can handle it. Bitcoin is a decentralized system that means no banks, government, and financial institutions can control bitcoin even the founder Satoshi Nakamoto has no control over it. The fiat currency is a centralized currency that means the government of the country regulates it. The government has all the transactions of sending and receiving people because banks and other financial institutions are centralized. So bitcoin started to remove the centralized system that means no one can control the bitcoin.
Volatile:- Volatile means fluctuations that mean there are too many fluctuations in bitcoin. The price of bitcoin changes every second because it is a decentralized system and the value of bitcoin rests on the demand, supply, and other external factors. In the past few years, people who invested in bitcoin earned huge money because, at the present stage, the price of bitcoin is very high compared to previous years. Therefore, people with a high-risk appetite are eager to invest money in bitcoin.
Multiple uses:- Bitcoin is more than a currency that means it is not only the medium of exchange, but you can do various things with it as given below:
- You can invest money for the long term and short term.
- You can earn money through trading bitcoin (Check here for more information on digital wallets)
- You can send bitcoin to anyone globally.
- You can receive bitcoin from anyone in the world.
- You can accept bitcoin payments as a business.
- You can use it as a currency or medium of exchange.
- You can do online shopping with bitcoin.
- You can do mining through the bitcoin platform and can earn money.
So there are a lot of uses of bitcoin that have become more and more popular and attract more investors to invest in it.
Privacy:- Your identity is anonymous on the bitcoin network that means no one can see your personal information except you. The government or third parties cannot track your bitcoin transactions because bitcoin is a decentralized system. On the other hand, if you use fiat currency, you have to submit your identity proofs to third parties such as banks or other financial institutions to register or open your account. They can make your balance zero, and they can see all the transactions, they can close your account permanently when you breach their rules, and they can also share your information with third parties. But in bitcoin, you are the owner of your account. No one can see your transactions or information except you.
You are the owner:- When you open your bank account or another account through a third party, they will ask for your identity proofs for validation that means they have access to your personal information and your budget. They can modify your account, and they are responsible for all the activities. But in bitcoin, you are the owner of your account, which means no one except you can see your transactions. You are the only person who can change the information and create a new wallet according to your choice.