Bitcoin, the most valued cryptocurrency was invented on 3rd January 2009 by a person or a group of people named Satoshi Nakamoto. During its decayed journey, bitcoin has given us so many billionaires and millionaires, official website. In the first few years, people did not get so much positive and they doubted whether the cryptocurrency would last long or not.
But what makes bitcoin so much value that people almost became mad after it? More and more people are investing in it ignoring its volatile market and the number is increasing day by day. Numerous numbers of bitcoin exchanges are sprouting in the market. One such exchange platform is the Bitcoin Era which has recently become popular. Let’s know some of the facts that are responsible for bitcoin’s gained value.
- High profit: Bitcoin’s market value is subject to volatility. This might make you think that there is a high risk involved. This is true but, if you are a good player in this field, you might know that volatility can be the key factor for high returns. If you have enough knowledge about the economic market and have the right investment strategy, you can always win the game in this volatile market.
- Increasing market demand: The number of Bitcoins that can ever be in existence is fixed. At the time of its release, the bitcoin protocol has fixed the number that is 21 million. Among these 21 million bitcoins around 19 million have already been mined.
- Compared to gold: Investors of bitcoin started referring to it as a high-value asset class investment like gold. They have termed it ‘digital gold’ because its store value is almost similar to the value of gold. Bitcoin is now having a 20% share of the store value market and expected to have more in the future.
- Economic: Bitcoin trading and transactions are economic. There is a negligible amount of transaction charge involved. Sometimes no transaction charges are needed. Whereas, in the traditional banking process making large transactions charges a high amount of processing fees with many other additional fees. So, bitcoin is a much more economic medium for making transactions.
- Fast transaction: Time is money- we all know that. With the help of the latest technologies and P2P transaction process, bitcoin transfers can be done in just no time. Even international transactions are processed seamlessly in just a fraction of a second. This is much faster than traditional bank transactions. For the ease of convenience, there is also the availability of crypto debit and credit cards. Even bitcoin ATMs are there too where you can turn your traded Bitcoins money anytime.
Apart from these factors, there are some more aspects that prove bitcoin’s high demand and increasing value as well as influencing it more.
- Acceptance of Bitcoins in InEl Salvador: El Salvador is a country in Central America. In September 2021, the country took a remarkable step by announcing bitcoin as a legal tender alongside the U.S. Dollar. This movement made the 40-year-old president, Nayib Bukele an icon among bitcoin enthusiasts.
- Major companies are accepting bitcoin: Many-worlds big companies have started doing business with bitcoin. They are accepting bitcoin as the payment from their customers against their cervices. Tesla, Mastercard, Visa, Pavilion Hotels and Resorts, Starbucks, PayPal, and many others are on the list.
- Financial institutions are adopting bitcoin: Initially, the financial institution was very skeptical of Bitcoin. However, the increasing worldwide acceptance and growth of this currency have successfully changed the mind of many financial institutions. Some prime banks like U.S. Bank, and Wells Fargo Bank started bitcoin services for their customers.
So, there is no doubt that bitcoin is a high-value cryptocurrency and this is how it is gaining its value. As per the financial research reports, the number of Bitcoin investors is increasing day by day. Such numbers are predicted to be more in the near future.