What is Bitcoin?
Created in 2009, Bitcoin is digital currency that people can exchange peer-to-peer without needing a trusted third-party, or “middle man.” That is directly with each other. Bitcoin has a maximum supply of 21 million which will ever exist. Making it scarce and valuable. The Bitcoin network runs on computers distributed around the world. The decentralized nature of the network makes it extremely secure and resistant to attacks. Unlike our fiat money which runs on banking system and control by the Government, Bitcoin is different and free from control or a central system.
What can Bitcoin be use for?
Since Bitcoin is considered as money, it can perform so many functions as compared to our average physical currency.
- Digital Cash: Its original authors subtitled it a “peer-to-peer electronic cash system.” Which means it’s a virtual currency that works on the internet and computer systems. With this, you can use Bitcoin to buy and carry other financial transactions.
- A store of Value: Many consider bitcoin to be a better version of gold given that it’s portable, easily storable, and impossible to counterfeit. With this, you can better store your values rather than keeping your money in fiat form or buying gold or silver.
- A way to bank the unbanked: Bitcoin lets anyone with access to the internet create a wallet and use the network, including the estimated 1.4 billion globally who lack access to the traditional financial system. So even without a Bank account, you can own Bitcoin.
- A hedge against inflation: People use Bitcoin to avoid inflation since bitcoin serves as a hedge against inflation.
- Trading and betting: just like how people trade and bet on stocks, Bitcoin can also be traded.
Why is Bitcoin popular?
- Size: within the crypto space, Bitcoin has the largest market capitalization of any crypto
- Inflation: With many countries facing rising inflation, many view bitcoin as a hedge, or “safe haven” against the falling value of national currencies.
- Volatility: Bitcoin is synonymous with volatility, reaching an all-time high around $69K in November of 2021 and trending around $40K since the beginning of 2022, a 35% swing.
Bitcoin is being traded on most of the world’s leading exchange and the top cryptocurrency wallet support Bitcoin. You can invest in Bitcoin today or buy and sell Bitcoin on Binance , the World’s largest and leading cryptocurrency exchange.
Create a Free Binance account HERE today and start your crypto journey.
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