Why Bitcoin is Promising (Why Bitcoin is So Popular)

Why Bitcoin is Promising Why Bitcoin is Promising?

Why Bitcoin is Promising?

In 2020, the global economy has undergone tremendous changes. Governments and central banks around the world are starting a series of reforms and measures on the financial system and currency issuance. From the 1970s to the 1980s, the US dollar quickly dominated the world, but at the same time, its high fees (especially transaction fees) made it difficult to achieve a considerable scale, and eventually entered the mainstream. Therefore, we now see that many countries are speeding up the implementation of digital asset strategies to promote economic recovery and stable growth. (Forbes)

According to Bloomberg’s data, the US Treasury bond yield is 3.8%, while gold has fallen nearly 10% to 1.1%. The current price of Bitcoin is about $9,450. This means that investors have held more than one million BTC since the beginning of this year, buying an average of one BTC per day. With more and more institutional investors putting funds into the cryptocurrency market, the price of Bitcoin may continue to rise in the next few years. However, this is not a bad thing because it may change our way of life and work, bringing more wealth to humanity. The reason Bitcoin is worth attention is because of its anonymity and security features, which make it an attractive alternative to traditional currencies with more value preservation and usability. Bitcoin is not only a means of storing value, but also a technology that can help people better protect their assets and can be used for any purpose, such as payments, etc. So, what is Bitcoin? Bitcoin was created by a group of geeks and has the characteristics of decentralization, making it one of the most popular applications in the world. “I think Bitcoin can play a very important role as a tool,” said a blockchain expert from the United States, “For most ordinary people, Bitcoin may be a form of ownership proof, and they can be used as proof of all properties of currency or commodities.” “So if someone wants to use it, they can exchange their Bitcoin for something else.” In addition, he pointed out: “If you don’t believe that the Internet or Bitcoin will have any problems, you can try to establish a trust-based network through the network, so you won’t miss an important event in the future.” Regarding the security of Bitcoin, this analyst explained: “When you see digital tokens like Bitcoin, your private key is your bank account. At this time, you will find that Bitcoin is actually an unbreakable smart contract platform, and the transaction process of Bitcoin is as simple as a computer: you can send emails with just a string of characters. In other words, the only purpose of Bitcoin is to achieve peer-to-peer transactions without a cryptographic foundation; and, each transfer is just a starting address, not a separate wallet.”

In addition, this analyst also mentioned several black swan events that have occurred in recent months. These events indicate that although Bitcoin has risks, many people are still willing to accept Bitcoin as a new asset class, and they have also recognized this.

Why Bitcoin is So Popular

Editor’s note: This article is from Bit-coin Information (ID: bitcoin8btc), written by Overnight Porridge, authorized by Planet Daily.

Bitcoin has attracted attention since its birth. On October 12, 2017, Coinbase, the world’s largest cryptocurrency exchange, announced its listing; in January 2018, the price of Bitcoin reached a historical high; at the beginning of 2020 trading session, the price of Bitcoin once exceeded $8,000; the bull market in 2019 was also considered a sign of institutional entry. On the morning of November 24, 2020, keywords such as “digital gold” and “COVID-19 pandemic” appeared on major media headlines, including Chinese central bank governor Zhou Xiaochuan and U.S. Treasury Secretary Janet Yellen, who said in an interview with CNBC: “We have seen people’s views on the future financial system, and all of this takes time.” So what is driving Bitcoin’s popularity? Why is Bitcoin so popular now? Below, we will explain the reasons from two perspectives. “I know that many people will ask whether Bitcoin is a store of value rather than a speculative investment or an alternative asset class,” a anonymous expert pointed out.

Bitcoin is a virtual commodity with a fixed supply and divisibility. It is usually linked to fiat currency, but it is actually not related and is not supported by legal tender like stocks. Therefore, it is immutable.” Although many people describe it as “useless”, this statement makes sense because it is not essentially used as a medium of exchange. In fact, most people only consider using this term after purchasing, or more specifically, when they own some BTC and want it to be used for other purposes, there will be an increase in demand and market sentiment. If Bitcoin becomes a payment tool, its price may reach trillions of dollars. Therefore, if someone wants to take advantage of this wealth and earn high profits, you have to buy it back and participate.

Of course, there is another explanation that can help everyone understand this:

1. Bitcoin is a peer-to-peer electronic cash system, and users can obtain funds in any way through it without the need for a bank account to achieve instant transfers; 2. Due to the security and decentralization of the Bitcoin network, it is almost impossible to be attacked and there are no problems with smart contracts. Even if there are security issues, it will become easy to liquidate. In addition, Bitcoin cannot guarantee 100% free and may even be lost at any time; 3. In order to avoid fraud and theft risks, it is necessary to establish a sound legal system to ensure ownership and reputation, as well as to prevent illegal fundraising and other criminal activities.