Introduction
Bitcoin is the first decentralized cryptocurrency. Bitcoin has all the qualities necessary to be a new kind of money. In this article, you will learn why bitcoin is so popular.
Bitcoin is Borderless and Unregulated.
Bitcoin is a borderless, decentralized currency. No one controls it. No single entity can control the currency, and the network is not subject to capital controls. The network also has no physical location, making it hard for governments to shut down or freeze assets if they want to seize them.
What does this information signify for you as a user? It means that your Bitcoin transactions will always be secure and safe from interference by third parties like banks or governments that may try to seize your assets at some point in time. You have complete control over your money when you use bitcoins because there’s no central authority involved in buying or selling them! That’s why bitcoin is so popular these days.
Bitcoin Has All Qualities Necessary to be a New Kind of Money.
Bitcoin is borderless and decentralized. It means that it is not subject to any government or central bank. The bitcoin network is run by many computers worldwide, so no one person or entity has control over it.
This characteristic makes Bitcoin attractive to those who want an alternative to traditional currency in countries with weak national currencies and unstable fiat currencies, such as Argentina and Zimbabwe.
Bitcoin’s anti-inflationary bias also makes it appealing. Since there will only ever be 21 million BTC, each BTC could become more valuable than its corresponding dollar or euro equivalent over time. The rate at which new Bitcoins come into circulation slows down every four years; after just two years from now—in 2020—the process will slow further until we reach an absolute limit of 21 million BTC per year by 2032.*
And finally: what about volatility?
Bitcoin is a Hedge Against Inflation.
- You may have heard that Bitcoin is deflationary. It means that the supply of bitcoins in circulation will eventually decrease, and their value will increase.
- When you hold USD, it can lose its value if your government starts to print more currency. For example, US dollars used to be redeemable for gold at some point after World War II.
- Bitcoin is an alternative investment with no counterparty risk and low inflation risk (2–3%).
The Halving Reduces Supply, Which Could Cause Prices to Increase.
The Bitcoin halving will occur in 2020, a predictable event. So if you’re looking for why Bitcoin could increase in value before then, this is it. The halving reduces the bitcoin supply by half every four years because miners receive half as many coins after each block they mine.
It may cause prices to increase because there’s a smaller supply of coins available on the market.
Bitcoin has all the necessary qualities to be a new kind of money.
The most crucial part of Bitcoin is its decentralized nature, which means it is not controlled by any single entity and can be used by anyone with an internet connection. Bitcoin’s blockchain technology allows users to send money without trusting any third party, like a bank or government institution. The absence of intermediaries allows for lower fees than using traditional financial institutions like banks, which charge exorbitant amounts for processing transactions.
Bitcoin also has robust privacy features that make it practically impossible for anyone but you and the sender or receiver to know about your transaction history on the blockchain’s public ledger. Similar privacy features are lacking from traditional fiat currencies such as US dollars and euros since governments have access to these centralized ledgers at all times!
Finally, Bitcoin is inflation-resistant because there will be only 21 million bitcoins in circulation due.
Conclusion
Bitcoin has all the necessary qualities to be a new kind of money. It is decentralized, borderless, and unregulated. It is also a hedge against inflation and can be used for international transactions. As long as people need an alternative currency that works globally, Bitcoin will continue to thrive—and could even go mainstream shortly! We hope you learn why bitcoin is popular.
