Definition of Bitcoin and Why do People Use Bitcoin?


Bitcoin is the world’s first cryptocurrency. It is not currency minted at any central bank of countries. Satoshi Nakamoto’s pseudo entities development of Bitcoin in 2009 has been hailed as a radical development in the current financial system. It brought decentralization in the usage of money and currency.

Bitcoin operates similar to any digital cash but on its own decentralized network, Like PayPal, Paytm, or GooglePay you scan an address and press send, and voila, Money sent. Looking back it is Bitcoin that brought the scan and pay system to the world.

Why do people use Bitcoin?

People can send Bitcoins, even a small part of it to your digital wallet, and you can send it to other people. Every single transaction over the blockchain is recorded in a public ledger called the blockchain.

This makes it possible to trace the history of Bitcoins to stop people from spending coins they do not own, making copies, or undoing transactions.

When it comes to dealing with bitcoin, there is no need for the users to worry about the engagement of the intermediary. Anyone can download the software and can start using it without facing any barriers. There are no permissions associated with this.

Some people like the fact that the government or banks do not control Bitcoin. People can also spend their Bitcoins anonymously. Although the ledger records all the transactions, nobody would know which ‘account number’ was yours unless you told them.

Bitcoin is completely free from political agendas, though a government or any institution does not back it, it is proofed by mathematics and cryptography, and thus you are trusting the network itself and not the changing Politian’s. Bitcoins are generated through a process known as Bitcoin mining. No one can cancel the previously generated bitcoins just like bank currency.

What makes it valuable?

Currently, people use bitcoin as store of value, a hedge against inflation.

Our traditional currency is an inflationary currency, which incentivises us on its spending, but its value decreases. While bitcoin is a deflationary currency, it has a maximum supply of 21m bitcoin.

We can compare bitcoin with gold in terms of supply, as there is also a limited supply of gold on earth, which is the reason for the increase in its price. It is applicable in bitcoin, as stated above only 21m bitcoin are available. Moreover, there is no need to own a complete 1 bitcoin as it can be used in parts of 0.00000001 bitcoin called 1 Satoshi. This is even a lot better than gold as there are other gold mines to found.

Why is it gaining publicity?

Bitcoin was invented in 2009, and after 2013 it had gained a huge adoption by techno enthusiast. But still in this year of 2021 a huge amount of world’s population don’t have much idea about the principal, working and use cases of bitcoin or the underlying blockchain technology brought by it. All people know is that it is a highly valued currency.

Many famous economists across the globe have predicted that Bitcoin will keep increasing its value in the coming years. Thus, buying or exchanging this cryptocurrency assures a good future in the time to come.

Bitcoin started with value equivalent to 0, actually in fractional amount of cent but in a decade it valued above $60000 and reached a market cap of $1trillion, and that too quickest. Bitcoin reached this milestone in just 10 years. Who will not dream of becoming a millionaire with only small investment? And Ten years ago if you had bought bitcoin when it was equal to $1 only an investment of $100 would have made you a millionaire toady even after the recent crashing of market. IF this doesn’t look lucrative enough than I don’t Know what will?

At present, many investors have shifted their portfolio into the Bitcoin like

  • MicroStrategy Inc
  • Greyscale Inc
  • Tesla
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