The advent of Bitcoin has revolutionized the Fintech industry. Besides improving the safety of online transactions, BTC comes with blockchain technology which plays a great role in data protection.
Though there are over 4000 cryptocurrencies in the crypto ecosystem, Bitcoin has been touted as one of the most perfect alternatives to fiat currencies. Fast BTC transactions and transparency in transactions is what makes BTC stand out in the financial sector.
Unlike traditional currency which puts private data at risk, Blockchain based transactions are anonymous which makes it difficult for third parties to access personal data.
However, the exciting feature associated with BTC has resulted in a surge in market capitalization. So far, BTC commands a market value of 629.08 Billion. This is estimated to be 46.27% of the entire cryptocurrency market.
In this article, we take a look at factors that have contributed to the popularity of Bitcoin over the years!
Scarcity
Acute scarcity of BTC in the crypto market has highly contributed to a sharp rise in demand. This is occasioned by halving of blocks during mining. Currently the total number of Bitcoin in circulation stands at roughly 18.5 million. The capping of the total number of BTC in circulation is a key strategy that has played a great role in boosting popularity. This is contrary to traditional currencies which are printed every time.
Since the introduction of BTC into the crypto market in 2009, the blockchain protocol capped the supply of tokens to 21 million. With the protocol in place, the rate of BTC Injected into supply is halved in a cycle every four years. That means the supply may remain low for a couple of years.
Mainstream acceptance
For a long time, most traders used to be skeptical about the use of BTC in transactions. As time goes by, various merchant platforms have gradually integrated BTC payment gateway. This is attributed to the need to tap into a growing number of crypto users across the World. In that case BTC has attracted the attention of many investors Worldwide.
Monetary value
Bitcoin is used as a medium of exchange just like traditional currency. The cryptocurrency can now be used to purchase products on many ecommerce platforms.
Furthermore, the monetary value aspect has attracted many investors with many using it for trading on various exchanges.
Safety features
The safety feature associated with blockchain based transactions has made Bitcoin attractive to many investors. Unlike transactions made by traditional finance players that entail the use of personal data, BTC platforms have high end data encryption that cannot be accessed by third parties.
Low Transaction Fees
Unlike traditional currencies associated with high transaction fees charged by financial institutions, BTC transactions attract low to almost free costs in carrying out transactions.
Cannot be counterfeited
While fiat currencies can easily be counterfeited resulting in loss of value, crypto currencies are digital currencies existing online making it difficult to counterfeit. As such, the crypto market is free from the negative impact that can be caused by fake currencies.
Usefulness
An effective currency should have utility. This means users must be able to trade with the currency for various goods and services. This is why currencies are made to avoid barter trade.
Additionally, an effective currency should be easily moved from one location to another. As such, BTC scores better in these aspects since it can easily be traded for goods without worrying about portability. And this is why bitcoin is a good investment.
Final Thoughts
The advent of Bitcoin has not only secured online transactions but also made it easier to carry out international money transfers at extremely low fees. If you are worried about the safety of online transactions then it’s high time you try out BTC. Be that as it may, the popularity of Bitcoin is likely to shoot up over years due to the ever growing demand.
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