Cryptocurrency is a type of digital asset designed to act as a medium of exchange. It uses cryptography to verify the control and transfer of assets created by additional units and secures transactions. Cryptocurrency is also known as digital currency, alternative currency or virtual currency. The cryptocurrency system operates under decentralized control which opposes the central banking system and the centralized electronic money system. Decentralized control of each cryptocurrency works through a blockchain. It is a public transaction database that serves as a distribution sector. Bitcoin is currently the most widely used and popular cryptocurrency. There are also cryptocurrencies like Ethereum, Lightcoin, Dash etc. in the market which are popular.
What is Bitcoin?
Bitcoin is currently the most popular and used digital currency in the cryptocurrency world, known as the medium of global transactions. Bitcoin is the first of the decentralized digital currencies because it is the first to operate without a central bank or a single administrator. Bitcoin network is a universal process that takes place directly between users without any intermediate means.
Bitcoin is discovered by an unknown person or group of individuals. The discoverer was named Satoshi Nakamoto. It was released in the open market in 2009. Bitcoin is made through the mining process. It is currently used for exchanging currency, goods and services. According to 2015 statistics, more than 1 lakh traders and sellers have accepted Bitcoin as a means of payment. A 2016 Cambridge University study on Bitcoin found that between 2.9 million and 5.7 million people used cryptocurrency wallets, with most users using Bitcoin.
Why is Bitcoin so popular?
When it was discovered in 2009, its popularity was unimaginable. According to an interesting fact, if you had invested only ১০ 100 in Bitcoin in 2009, the value of that investment would now be around মিল 3-4 million. This means that the value and popularity of Bitcoin in the world of cryptocurrency is infinite. At the current market price, the value of 1 bitcoin is around 7 lakh 8 thousand 5 hundred rupees. Today we will discuss why Bitcoin is so popular.
Decentralized
The Bitcoin network is not controlled by any central authority. Every machine that does bitcoin mining and keeps the transaction process running is considered a part of the network and all the mining machines work together. So theoretically, no central authority can cheat in this monetary policy and as a result no accident is likely to happen. People use so much bitcoin because of this security system.
Easy set up
Setting up a bitcoin account is much easier than setting up a normal bank account. Anyone with minimal computer and online experience can easily open a Bitcoin account. There is no fee to open this account.
Privacy
A user can hold multiple bitcoin addresses where they do not have to be associated with a specific name, address or other person. This type of privacy is not typically seen in digital currency systems in a competitive market. Bitcoin is the first currency system to provide so much privacy. This is why the general public and business people like to use it.
Transparency
The details of all types of transactions that take place on the Bitcoin network are stored through a huge general ledger called Blockchain. This way the user does not have to store all the information of his transaction separately. In the Bitcoin system a user can see the movement of his transaction if he wants, so there is no possibility of any kind of fraud.
Low cost transactions
There is a transfer fee for international currency exchange and in most cases there is a high fee. But in the case of Bitcoin, transactions can be done at a much lower cost. Which is one of the main reasons why it is so popular.
Speed
The bitcoin system works much faster. It will be transferred to another server within minutes of you transferring money. The Bitcoin network completes the payment process very quickly. This is why traders are more interested in using Bitcoin for their institutional transactions.
Wide spread
Bitcoin is growing exponentially and as a result more and more people are learning about it. Currently the US, Australia, UK government and even the UN are thinking of implementing the use of Bitcoin in government work. Apart from the government, various reputed organizations are also thinking of using it. That is why the use of Bitcoin in large size is increasing day by day.
Risk barriers
The currency continues to depreciate, creating a volatile situation in the economy. Due to which the common people are facing various problems. That's why many are looking at Bitcoin as a remedy to prevent currency devaluation. According to most experts, we should increase the use of digital currency to reduce the pressure on ordinary currency. Due to this the use of digital currency is increasing day by day. And since Bitcoin is the first digital currency, people are using it more.
it is constantly increasing. Bitcoin has also recently been added to Forex trading and Forex traders are trading in it.
Thank you @georgedonnelly @Telesfor @TheRandomRewarder
Instructive text! You explained nicely what bitcoin is ...