Bitcoin’s surge in popularity is rapidly bringing newcomers to the space. If you’ve only recently become interested in cryptocurrency, you’re in the right place. This article will go over all the basics of the most popular cryptocurrency in the market.
- What bitcoin is and why it’s popular
- How it’s different from the current banking system
- What are the benefits of using it
- Whether it’s a safe investment
- How to get it
So without further ado, let’s dive in and answer each of these questions.
What is Bitcoin?
Bitcoin is a digital cryptocurrency that was created back in 2009. It has become one of the most significant investment assets, achieving over $1 trillion market cap in the past decade. Its popularity has attracted millions of investors globally.
Many continue to invest in it, as El Salvador has accepted it as an official form of payment. As more businesses and governments accept it as a payment method, bitcoin will become increasingly popular. That will lead to even more people using it.
Multiple reasons make bitcoin so popular. Keep reading to see what they are.
Why is it Popular?
Bitcoin is the first cryptocurrency to come into existence. Since its inception, it had received wide media attention, especially when it started gaining value. The more news media outlets started reporting on its activities, its popularity in the general public grew.
Of course, media is not the only reason why it’s popular. The currency runs on a blockchain, which is the latest and greatest solution that ensures the complete security of the whole system. Its invention is why cryptocurrency and the entire space are so popular.
Aside from powering bitcoin, that same technology will power the whole Web3. Platforms such as Ethereum and Cardano keep showcasing blockchain’s vast versatility. All this instills more hope in investors, who continue to back bitcoin by buying it every day.
With the metaverse development, the leading crypto asset will become more popular. That will lead to more investors.
How is it Different Than Traditional Banking System?
The technology backing bitcoin is not the only reason it’s so appealing. The nature of how everything works is what is bringing in more investors. There are a couple of different things to consider.
The bitcoin network runs on millions of nodes. Their goal is to make advanced mathematical algorithms to calculate the current block’s hash. That process is called proof of work. The nodes are, in fact, processing machines such as graphics cards or dedicated mining rigs.
That’s the power of bitcoin, as nobody controls the system. Its founder has created a self-governing system backed by millions of independent nodes. They keep the system secure and out of the control of a government or any corporation.
Unlike traditional banking that takes days to transfer funds, the bitcoin network is much quicker. Each transaction takes a short period to finish. They range from minutes to hours, depending on the number of transactions.
As the system grows, the speed will improve as the community keeps improving it.
All bitcoin holders are anonymous. The bitcoin address is a random selection of letters and numbers. There are no names involved in transactions. Anonymity is a very appealing fact about the network, as nobody knows how many bitcoins you hold.
Another benefit of using BTC is low paying fees. Plus, whenever you pay the fee, you know it’s for the maintenance of the network. The fees are rewards for nodes that consistently work to keep the system running.
Unlike creating profits for banks, paying fees benefits everyone using cryptocurrencies.
Using bitcoin is practical. It was not an official currency once it went live back in 2009. However, as more people put faith in it, it slowly evolved into a widely accepted payment method.
Companies such as PayPal have brought its use to millions of online retail businesses. An increasing number of businesses are starting to accept bitcoin as a payment option. That makes the currency very practical, as you can use it to pay for goods and services anywhere.
Is it a Safe Investment?
If you’re looking for a safe investment, bitcoin is not the best pick. Its volatility is what often gets it in the media’s eye. However, if you’re a long-term investor, bitcoin has kept growing when you take a look at its history.
History shows that the trend will likely continue, but there will be plenty of bumps along the way. If the acceptance rate grows and more governments adopt it as a form of payment, its price will likely increase.
Still, the advice remains, don’t invest more than you can afford to lose.
How Can You Get Bitcoin?
The easiest way to get bitcoin is to purchase it from an online exchange. Most people opt for this option as it’s the most convenient one. Another option is to invest in mining gear and become one of the nodes in the network.
You can then get paid a reward in BTC for maintaining the network. However, buying it is a much simple process.
Take the Estonian Azondo, for example; the exchange allows you to swiftly register, confirm your identity, and purchase bitcoin in a matter of minutes. As soon as the BTC is in your Azondo wallet, you can withdraw it wherever you like.
Rely on the Bitcoin Exchange Azondo to Purchase BTC
If you’re looking for a way to buy bitcoin quickly, safely, and easily, the Estonian Azondo is one of the top options for EU citizens. Customers from all European Union and Scandinavia can seamlessly use our platform to purchase, store and withdraw bitcoin.