Cryptocurrencies are innovations that have brought numerous advantages worldwide. Which is why they have started to appeal to many industries and individuals worldwide. A cryptocurrency is a virtual or digital coin secured by cryptography, which improves online safety and makes counterfeiting almost impossible. Most digital currencies function on blockchain technology, a decentralized ledger with the special feature of working without middlemen, like banks or governments.
Over the years, plenty of cryptocurrencies have been issued. But Bitcoin remains the most popular and largest coin with the biggest market cap, and this is why a lot of individuals are interested in Bitcoin price. Bitcoin was the first cryptocurrency created, so it has the first-mover advantage. But it is also the one that has inspired all the other altcoins to come alive. In this article, we will explore the history of Bitcoin and the advantages of investing in the crypto king.
Bitcoin’s History
Bitcoin was developed in 2009 by a creator whose identity remains unknown up to this moment, Satoshi Nakamoto. He wanted to introduce something that would create a decentralized and new electronic money system working without a central authority. So, Bitcoin was going to serve as a system that would function without intermediaries involved in these processes.
The history of Bitcoin continued in the following years, when the first Bitcoin transaction occurred and later when Bitcoin was used in exchange for a physical product in 2010, most specifically for a pizza. This event is known as Bitcoin Pizza Day, and it is celebrated annually to mark the first Bitcoin transaction in the real world. In the following years, Bitcoin has gone through challenges and happy times. Further cementing its position as the most popular and important cryptocurrency.
Bitcoin improves security greatly, as the information stored on Bitcoin can’t be modified because a computer code seals each block. This forms a chain, and in this way, the concept of blockchain was born. New bitcoins are added to the blockchain through a process called mining, where miners validate transactions and generate new blocks. Miners receive rewards in the form of BTC for their effort and time, and the value is cut by half every four years to maintain the crypto king’s scarcity.
What are the advantages of investing in Bitcoin?
Accessibility
Bitcoin is an asset that can be bought by anyone anytime because you only need an Internet connection and spare cash. So, it doesn’t matter where you are, as Bitcoin has great accessibility. Which is why you can buy it almost in any possible way, like with a bank transfer or a debit card. You can purchase Bitcoin even in those countries that don’t have access to modern banking services. As you can consider peer-to-peer (P2P) sales. Additionally, as Bitcoin is the largest cryptocurrency by market cap, this makes it a very liquid asset. So you will be able to buy whatever amount of BTC you wish, and you will instantly receive your digital coins and become a Bitcoin owner.
Decentralization
Another great advantage of Bitcoin is that it is a decentralized asset, meaning that a central authority like the government or a bank does not control it. Additionally, decentralization signifies the network is distributed among numerous computers, often called nodes. Decentralization prevents a single point of failure and reduces the risk of attacks. Making it impossible for something bad to happen to the blockchain. Furthermore, because of decentralization, you don’t risk that your assets will freeze. As it is impossible for someone to manipulate the Bitcoin network.
Instant transactions
Another great advantage of Bitcoin is that it ensures instant transactions, which do not happen originally with bank transfers, as they need a few days to process payments. Not to mention that there are many cases when the bank puts the amount of money on hold. Because a person has sent more money than usual. On the other hand, in the case of Bitcoin, transactions only need 10 minutes to process, and you are able to send how much you want to transfer without something questioning your intention.
Did we mention that Bitcoin transactions are also anonymous? This means that you will not need to reveal names, credit card details, addresses, or anything else about your identity.
Functions as a store of value
A store of value can be anything, like a commodity, a currency, or an asset that is most likely to hold its value over time. Fiat currencies can be described as weak stores of value because they can depreciate over time due to inflation. Instead, commodities, like gold or Bitcoin, represent better stores of value because they will not deteriorate. Particularly because they have a limited supply, which will maintain their value.
Even if Bitcoin wasn’t seen as a store of value at first because it had many price fluctuations. Investors and people worldwide have perceived it as an excellent way to increase the value of their money over time. Bitcoin has a limited supply of 21 million coins, meaning that digital currencies will no longer be issued once that amount is reached. This offers Bitcoin scarcity features, making it a valuable asset to store and hold wealth.
Wrapping up
As you can see, there are a lot of advantages when it comes to investing in Bitcoin. Still, you should also keep in mind that cryptocurrencies are risky assets, so research before entering this world to minimize your chances of losing your funds. In the end, it depends on you and your desires whether you decide to invest in Bitcoin. Bitcoin is a cryptocurrency that has revolutionized the world, as it changed how people use their money forever.
Additionally, Bitcoin has influenced all the other cryptocurrencies and paved the way for a more decentralized and secure world. And even though there are numerous cryptocurrencies people can invest in, Bitcoin remains the crypto king.
