Bitcoin is digital money founded in 2008 by Satoshi Nakamoto to replace traditional paper currencies. Since then, Bitcoin has become an extremely popular speculative asset. Hundreds of millions of people invest in cryptocurrency around the world. The insane popularity of Bitcoins can be determined by the fact that roughly 69% of blockchain market value consists of Bitcoins. Additionally, Bitcoins have gained a staggering 260% value appreciation in the year 2020. The value of Bitcoins has increased from $8,326 in January 2020 to $26,475 in December 2020.
Hence, it created a huge potential for investors to generate a return by investing in Blockchain technology. The return that a bitcoin trader can get from the cryptocurrency market is extremely difficult to find in any other cryptocurrency market in the world. The tremendous growth in the value of Bitcoins has won the attention of investors from all over the world. However, this was not the end of the rally, and the value of Bitcoins has continued to appreciate further.
Why Bitcoins are getting So popular?
The value of Bitcoins touched the value of $60,000 on March 12, 2021. This means the cryptocurrency was able to double its value in less than 3 months. Hence, it generated better returns compared to any financial market in the world during that time. There are many reasons for such an astounding growth of Bitcoin. Here are some of the reasons for the tremendous popularity of Bitcoins.
Social Media
One of the significant reasons that contributed to the growth of Bitcoin is social media. Social media has become a part of our life. It is something we use daily. The social media post on platforms like Instagram, Reddit, and Twitter have very high engagement.
There are a large number of traders and trading communities on these social media platforms. News can have a big effect on the value of Bitcoins. Social media plays a very important role for the traders to stay updated with all the latest news in the industry. Additionally, traders can use social media to get tips and recommendations from other experienced traders. Many top celebrities and business owners also use social media. Any news from these celebrities and CEOs of the top company can also have a big impact on the value of a financial asset.
One of the recent such examples can be Twitter. The CEO of Tesla, Elon Musk, announced on Twitter that they are investing $1.5 Billion in Bitcoins. He also supported Bitcoin with the fact that it is better than traditional currency and increasing the investor’s confidence. This has led to an increase in the value of Bitcoins over the next few days. Hence, social media platforms are a great place to get global news about the cryptocurrency market.
Advantages of Bitcoins Over The Regulated Currencies
The tremendous popularity of Bitcoin also has to do with the way it functions and the advantages it provides it over the normal paper currencies. Bitcoin is a cryptocurrency that provides the user with the most user control. That means you can control the way you spend your Bitcoins without worrying about the intervention of any third-party governments. No banks are regulating the flow of cryptocurrency. The Bitcoins transactions also enable users to transfer Bitcoins with total anonymity. Apart from that, if we look at the liquidity, Bitcoins have the highest liquidity as compared to other cryptocurrencies.
This is one of the reasons why many traders choose Bitcoins over any other cryptocurrency in the world. Moreover, Bitcoins are a very secure way of storing your money. The Bitcoin wallets available in the market today use advanced encryption technologies to ensure that no one can hack a Bitcoin wallet. Hence, you can lose your Bitcoins only when you forget your wallet keys. Forgetting or losing wallet keys is not uncommon, and this is why you should keep your wallet keys safely.
Not only do Bitcoins give you more control, but it’s also getting wide acceptance all over the world. Many popular companies have started accepting Bitcoin as a mode of payment. These companies include Microsoft, Shutterstock, and Twitch, have started accepting as a mode of payment. Moreover, many smaller companies accept Bitcoins too. Apart from that, Paypal, one of the most widely used payment gateway, has also started incorporating Bitcoins into their payment system. That is, a user can easily store, buy and sell crypto from their PayPal Cash or Cashplus account.
Moreover, Bitcoins can be used to purchase stuff from over 26 million sellers that accept PayPal. Additionally, a user can also learn and track their spending made using Bitcoins within PayPal itself. Bitcoins are viewed as the future of the global payment system. The increasing acceptance of digital money like Bitcoins has allowed increased investor confidence in cryptocurrency.
Another great advantage of Bitcoins is their ease of making international payments. International payments can be made easily using Bitcoins, just like domestic Bitcoin transactions. Since Bitcoin is not regulated by banks or governments, there are no international transaction fees. Hence, it becomes far easier to send and receive payments across borders without worrying about government regulations. However, the Bitcoins wallets available in the market today do have a transaction fee. But these fees are far lower when compared to traditional forms of currency.
The international transaction cost with fiat currency can range anywhere between 3% to 15%. However, this is not the case with Bitcoins, and you can send and receive your money for much lower transaction fees. Not only for the international transactions, but the lack of regulations enables users to make any transactions at a much lower transaction cost than others.
Conclusion
The acceptance of Bitcoin is growing all over the world. Many popular companies have started accepting Bitcoins as a way of payment. Bitcoin acceptance by large companies like Paypal and Microsoft is very important to increase the confidence of investors in cryptocurrency. Additionally, social media also plays an important role in such impressive growth in the value of Bitcoins. Famous personalities like Elon musk have favored Bitcoins over fiat currency Twitter, one of the largest social media networks in the world. This is one of the reasons for the appreciation of the value of Bitcoins.