Bitcoin is a very popular, if not the most popular, cryptocurrency currently. It was the first cryptocurrency that was developed in the year 2008 and released in 2009 by Satoshi Nakamoto, who uses the name as an alias. Since then, Bitcoin has become a very influential cryptocurrency in the crypto world. In fact, Bitcoin has made such a huge impact in the cryptocurrency industry that it is now even used as a synonym for the same. One can also trade in cryptocurrencies by visiting online services.
There are many reasons why Bitcoin is considered so influential and why it has jumpstarted the entire crypto industry. The following reasons are the ways in which Bitcoin has jump started the cryptocurrency business are:
1. It attracted a wide number of traders due to its liquidity and easy accessibility
Cryptocurrencies are known for being easily transferred across borders. Similarly, Bitcoin is one such major cryptocurrency that allows cross-border trade. Bitcoin is a very adaptable, versatile, and easily accessible cryptocurrency. Transferring one’s Bitcoins to someone else or any other user is a fast and safe process. Hence, people have started showing trust in such cryptocurrency and using it for transactions and purchasing of goods and services from the marketplaces that accept cryptocurrency or Bitcoin as a valid currency.
This not only helps in facilitating inter-border trade but also intra border trade amongst countries with the least interference of the government fiat currency. This, in turn, helps in saving transaction fees and sometimes even completely eliminates the need for it. This makes Bitcoin easily accessible and improves its image in front of the general public.
2. People prefer Bitcoin due to the transparency, anonymity, and security that it offers
Unlike normal modes of trade which are very susceptible to fraud and cheating, Bitcoin makes it easy to eliminate these dangers by making the transaction process transparent for all the traders trading in this cryptocurrency. Bitcoin also provides some form of anonymity as the users are marked by numerical codes and can choose to have various public keys without having to use their actual names. In this way, it can also save one from fraud which is caused by people by using the name of reputed companies and hiding behind fake accounts.
As every Bitcoin trader has a unique number by which they are identified, it becomes easy to know which is the real trader that one would want to trade one’s Bitcoins with rather than falling prey to such scams. Plus, the blockchain technology that Bitcoin and other cryptocurrencies use keeps one safe from fraud.
Along with that, only the owner of a digital wallet has an idea about how many Bitcoins they have. This can help one save themselves from the lurking eyes of scammers. Besides this, Bitcoin also provides an option to create new wallet addresses in case the address of one’s wallet becomes public. This will help in keeping the information of one’s wallet and the amount of bitcoins that one possesses a secret.
This is in contrast with the current banking system that many countries have, from which an individual’s personal data and information could accidentally be leaked. Such personal information is not required when one is registering or trading in Bitcoin. This has brought a large number of people into the cryptocurrency trading world, and this number is only growing with the increasing influence of Bitcoin.
3. Bitcoin is preferred by many in the present world due to the non-interference of government policies
Bitcoin does not only get hype for being secure, safe, transparent, and quick. Many people also prefer trading in cryptocurrency like Bitcoin because it is not a centralized currency or a fiat currency controlled by a country’s Government. It is spread over the world and is not regulated or kept in control by the Government of a single country. This is a good thing because the Government, in these cases, cannot control the Bitcoin trade as a whole and would not be likely to freeze one’s Bitcoin or demand them.
This gives the traders of Bitcoins a lot more autonomy than they get while trading in Fiat currency. It gives them more control over their money and finances, and as the price of cryptocurrency like Bitcoin is not linked to the government policies, it can naturally go up or down as per the market’s requirement rather than the Government’s will. This is considered as one of the biggest advantages of Bitcoin and has brought in a lot more people into cryptocurrency trading and created a jumpstart for cryptocurrency traders.