If somebody mentioned Bitcoin some years back, nobody would’ve cared to know what it is. Even the term cryptocurrency was foreign to some individuals a few years back.
Although many people have heard about cryptocurrencies, others think about it as a form of underworld banking or currency with crooks doing shady deals behind computer monitors.
But that’s far from the truth. Bitcoin is an electronic currency that people use the same way they spend fiat money. You can also read about Bitcoin or any other cryptocurrency online. Many financial publications, websites, and blogs feature loads of articles about Bitcoin. Essentially, you can quickly learn about this cryptocurrency over the internet.
What is Bitcoin?
People use different terminologies to define Bitcoin. Some people call it a cryptocurrency, while others use digital currency. Some individuals refer to Bitcoin as a virtual currency. But, all these terms are correct. That’s because Bitcoin is digital money. It’s a form of electronic cash or money. That means you can’t have physical Bitcoins in your pocket. Ideally, Bitcoin resides in computers and mobile devices only.
But regardless of how you define Bitcoin, does it deserve the attention it is getting? Why is Bitcoin so important? These questions may linger in your mind on realizing how much attention people are giving this cryptocurrency.
Why Bitcoin is So Important
As hinted, Bitcoin is a virtual or digital currency. Like other cryptocurrencies, blockchain is the basis of Bitcoin. That means it is entirely decentralized. Essentially, no central bank, government, or authority can control or regulate Bitcoin. A peer-to-peer community comprising networked computers maintains the Bitcoin network. Each user is considered a node and has equal rights in the network.
Using blockchain creates an effective digital database or a distributed public ledger. And this ledger runs through cryptography, and it records all Bitcoin transactions. Bitcoin mining is a process via which miners confirm every transaction manually. And this makes Bitcoin transactions secure.
Through the mining process, all information that enters the Bitcoin blockchain undergoes mathematical checking. The Bitcoin network confirms and verifies all entries into a public ledger. Miners also check any change in the database.
Bitcoin is one of the pioneer cryptocurrencies to use blockchain technology. Since the introduction of this cryptocurrency in 2009, no hacker has managed to infiltrate it. And this has proven to most investors that it’s a safe investment.
What’s more, the meteoric rise of Bitcoin’s value has captured many investors’ attention. Today, people are trading this cryptocurrency on platforms like Bitcoin Loophole. These are known as crypto exchanges that facilitate the purchase and sale of cryptocurrencies. Perhaps, you can visit this trading app
Bitcoin has also proven to be a valuable value storage asset. That’s why some people compare it with gold. During an economic crisis, Bitcoin has proven its ability to withstand challenges better than fiat money. Thus, you can use this cryptocurrency to store value during a financial crisis.
Why You Should Care
Many people are looking for opportunities to invest in Bitcoin. Even large corporations are collaborating with existing crypto clients. More stores, both online and local, are gradually accepting Bitcoin payments. The crypto market is growing with more people buying and selling Bitcoin for profit. What’s more, the number of people using Bitcoin to store value is increasing by the day.
These are valid reasons to care about Bitcoin. If you’ve not thought about investing in or trading Bitcoin, you probably should. If you run a store or provide services, you might want to start accepting Bitcoin payment. That’s because if you don’t do that, you will lag behind your competitors.
Nevertheless, take your time to understand Bitcoin, how it works, and how to trade or invest in it. That way, you can decide from an informed viewpoint when dealing with this cryptocurrency.
