Is Bitcoin Really That Valuable? Yes!
From its inception in 2008, Bitcoin’s value has absolutely sky-rocketed. With what first started as only a dollar in value, now has grown to hundreds and thousands of dollars in fiat money value, per Bitcoin.
To lay the cards straight early on, yes, Bitcoins are really that valuable. With demand so reliable and popular, one cannot question why and how it has become a valuable commodity that it is today. In addition, something that draws people to Bitcoin is because of the profits that early adapters obtained.
That said, read more below to find out about how Bitcoin has made it become as valuable as it is today.
Record of Every Bitcoin Transaction
Those who are skeptical about Bitcoins will argue that the danger lies in the fact that Bitcoin transactions aren’t recorded. This is false. While it may be true that there’s no central bank or central government that controls Bitcoins, there is still a form of “watchful eye” over Bitcoin transactions.
Behind the scenes, every transaction is recorded in a ledger known as blockchains. Because this ledger holds a record of every transaction made, it’s easier for your computer to verify the validity of the transaction that you completed.
Mining affects Bitcoin’s Value
Another question that’s commonly asked is: who owns Bitcoins? Just like the whole https, and the like, no one owns Bitcoins. Every single user who has Bitcoins on their wallet, or who has Bitcoins for various transactions, owns it.
But, one of the most profitable ways of earning – and increasing the value of Bitcoins is through Bitcoin mining.
Bitcoin mining refers to the act of solving online problems or arithmetic, which are usually in math or computer-program form. For every algorithm that you solve, you open up (or mine) new Bitcoins. For this, you get a fee. As more users demand the use of Bitcoins, the market encourages miners to mine more and to complete more transactions.
Bitcoin is Becoming Easier To Use
Those who are drawn back from investing in Bitcoins will also opine that cryptocurrencies are only for intelligent geeks. Because you have no know-how about Tech stuff, you cannot trade. This is wrong.
- For trading and other exchanges, there’s now Bitcoin automated trading software, such as Bitcoin-Code, that allows automated trading. In essence, this means that you’ll no longer have to trade manually. The software does the trading for you, depending on the parameters that you set, and the daily exchange values of Bitcoins.
- For selling and the payment of goods and services, some Cryptocurrency users have even noted that Bitcoins are easier and faster to transact than credit cards. Plus, you don’t risk entering your credit card details on the Internet. All you have to do is to key in the payment from your Bitcoin wallet account, key in the address of the recipient, and the amount you are to pay for, then send. It’s that easy.
This ease of transaction has made Bitcoins so popular, such that its demand has dramatically increased. Were it not for this level of ease, Bitcoins wouldn’t be that widely accepted in the general market today.
Bitcoins Have Become Less Volatile
No currency is ever perfect; Cryptocurrency isn’t devoid of disadvantages also. One of the most common criticisms against Bitcoins is that it used to be a very volatile market. If you think that the stock exchange is unstable, all the more that Bitcoins used to be. But, because more investors have seen how valuable Bitcoins are, this has led to stability in the cryptocurrency market in recent times.
Bitcoin’s Value Build on Trust
Many years back, it was also a false notion to think that Bitcoins couldn’t be trusted as a currency because there’s no form of control over the market. In comparison with fiat currency, which the central bank controls.
Because there’s no central control over Bitcoins, it’s straightforward for investors to put their trust in Bitcoins. Through the blockchains, there’s transparency in every transaction. Plus, with no central control, this means that any developer in the world who wishes to use Bitcoins, or who have the knowledge in doing so, can even verify for himself how this form of market works.
Because no organization can control the whole Bitcoin market, the network has remained fully trustworthy. This is despite the fact that there may be some users who also aren’t as reliable as others.
After following the basic rules of supply and demand, Bitcoins have gone so popular and in-demand. Just like any other currency or commodity in the world, the higher the demand, the higher the supply as well. This means that its value continues to improve and to stabilize as well.
As many more cryptocurrency users are satisfied with the growth of their Bitcoins, all the more that others have become willing to trade and accept this type of cryptocurrency.