Bitcoin is the world’s first Hedera cryptocurrency, created by an anonymous individual (or a group of people) under the pseudonym of Satoshi Nakamoto. Its first block called the genesis block was mined on 3 January 2009. It has been more than a decade, and Bitcoin is now at the top of the cryptocurrency market.
When Satoshi Nakamoto created Bitcoin, he only created 21 million bitcoins and it is said that the last bitcoin will be mined in 2140. Bitcoin is considered digital gold because it is available in limited numbers and the value of BTC is constantly increasing day by day.
Following are some advantages of Bitcoin over other currency systems:
- Fast transactions: Transactions with Bitcoin are lightning-fast and take a few seconds instead of days or even weeks. Moreover, you can use bitcoins for transactions 24/7 from anywhere and anytime. These transactions are hassle-free and you can use your exchange or wallet to make such transactions.
- Low transaction fees: So, there is no third party involved when performing a transaction with bitcoins. Due to this, the transaction fees are low, and you don’t have to pay any fees for transferring bitcoins from your wallet to another wallet. Some exchanges can charge a transaction fee when you use their ATM, and you can check their charges before you open an account on their platform.
- Privacy: Bitcoin transactions ensure the privacy of the user. Since there are security keys involved, Bitcoin transactions are anonymous and at that same time, all the information regarding the transaction is stored on the Bitcoin ledger. Thus Bitcoin transactions maintain proper records along with ensuring user privacy.
- Decentralization: Bitcoin is a decentralized currency which means that no government or financial institution has the right to interfere in the working of Bitcoin. Moreover, fraudulent transactions are not possible in Bitcoins due to proper database maintenance and high security. It is impossible to alter or make any changes in the public ledger of the BTC network where all transactions are recorded. You can trade bitcoins on many premium cryptocurrency trading platforms such as Yuan Pay group.
- No inflation: In the case of traditional payment systems, inflation is a big problem. However, with Bitcoin, you can avoid such issues. Thus depreciation of digital assets due to loss and value is only limited by the number of bitcoins that exist and have no other limitations.
- Secure: Every single transaction of Bitcoin is recorded in a public ledger in which no unauthorized changes can be made. Due to this Bitcoin transactions are highly secure.
Bitcoin was the first cryptocurrency. Due to this, it has an edge over other cryptocurrencies. Moreover, it can’t be replicated and is a decentralized currency which makes it more secure as compared to fiat currency.
Bitcoin helps avoid the double-spending problem. Most of the Bitcoin network is controlled by miners who verify and audit all the transactions taking place on the Bitcoin network. Miners control more than half of the network power which ensures security and prevents fraudulent activities.
However, the value of Bitcoin lies in its scarcity. There is a limited number of bitcoin available in the market. There are only 21 million bitcoins ever created and the last bitcoin is supposed to be mined in 2140. Thus, we can say that the USP of Bitcoin is its scarcity.
It is a simple logic that as the supply decreases, the demand for an item increases, and this is why the value of Bitcoin keeps going higher.
Bitcoin is currently ruling the cryptocurrency market. It is the most sought-after cryptocurrency and is expected to stay that way for years to come. Despite Bitcoin being so volatile people are still actively investing in it. Thus, you can say that the value of Bitcoin is quite high and it is still the most essential currency despite the introduction of hundreds of new currencies in the market.
Trading bitcoins is not a difficult task as long as you have done your research well and are not afraid of the risks involved. As long as you don’t mind the volatility of Bitcoin and losses, Bitcoin is a good crypto to invest in.