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Bitcoin was created in 2009 and since then it is growing rapidly. Though the maximum number of bitcoin that can be created is fixed, the popularity of bitcoin is unbounded and spread throughout the world. Bitcoin made its strong position in not only the economic market but, also has become a part of many people’s life as a system of online money payment. If you are interested in Bitcoin trading, you might consider joining a reputable community like bitqh.net.
The name of the bitcoin is Satoshi Nakamoto. But, no one can say if he is a person or a group because he decided to remain anonymous. So, all the communication at the time of the introduction of bitcoin was done by cryptographic mail.
The objective of bitcoin was to create a decentralized payment system. A system, that performs without any third-party interference. Not even banks and the government can regulate it. They can’t even issue bitcoin, unlike a fiat currency. So, the control of bitcoin is completely on the people who hold it.
Bitcoin network works on a basis of Blockchain technology. The technology facilitates distributed ledger system. That means the transactional data of bitcoin remain recorded in the blocks or online ledger and they are evenly distributed among the users. The users are interconnected so peer-to-peer transactions happen here. The whole system is safeguarded with cryptographic encryption. That is where the name crypto currency came from.
There are many reasons one can attribute to the growth of bitcoin but we can narrow it down to a certain few.
- First mover advantage
One of the major reasons why we saw an increase in the popularity of bitcoin was because of the first-mover advantage. Before the launch of bitcoin, a decentralized currency only existed as a fictitious character. It wasn’t actualized and therefore not many knew about it. However, the creator of bitcoin was able to actualize the theory of a decentralized currency, and hence, this led to bitcoin being launched to the public. While the launch of bitcoin gave rise to many other altcoins it remained the most popular cryptocurrency. One can easily understand why. Since bitcoin was used as an example to understand the blockchain technology it was gaining popularity. People started looking at cryptocurrencies as being synonymous with bitcoins.
- Blockchain Technology
No one had ever thought of technology so complex for a currency system. It went against all existing rules of the financial markets and caused hype in the finance world. Blockchain technology was unlike any other and garnered a lot of attention. Since this technology was the foundation of bitcoin it only seems fitting that bitcoin gain its popularity because of the superiorness of the blockchain technology. It ensures transparency and security in all sorts of transactions because of its irreversibility. It also makes end-to-end transactions possible in the fastest way and with a negligible amount of charge. Third-party users can’t manipulate the ledger. Hence, this technology has been the focal point of bitcoins which is one of the reasons why it has garnered so much attention from the public.
- Demand and Supply Forces
Another major reason why bitcoin rose through the ranks is because of the demand and supply. Since bitcoin unlike fiat currencies and other cryptocurrencies has a limited supply of only 21 million it has a very high demand. Because already near 19 million bitcoins are there a few are remaining. People wish to accumulate as many bitcoins as possible before it has been completely mined. Once all bitcoins are mined it is said that their value is likely to rise even more and create a huge demand-supply gap. Even more so, since many countries are now adopting bitcoin as a legal form of money. Once this adaption reaches its peak it will create a huge gap and bitcoin prices will likely rise to unimaginable amounts. Therefore, the demand and supply forces play a major role in the growth of bitcoins.
Hence, as you can see these are some of the common reasons why we see a rise in the popularity of bitcoins. Another reason why bitcoin has gained popularity is because of exchange platforms. These exchange platforms have created a lot of traffic and awareness regarding cryptocurrencies and bitcoin has always been at the forefront. Therefore, if you feel that you are late to invest in bitcoins you are wrong. It is still a viable investment option and new investors daily are joining the crypto market to benefit from cryptocurrencies.