What is Bitcoin
Bitcoin (BTC), the digital currency, gold, and asset of this decade, has seen immense popularity due to its properties as a hedge against uncertainty and inflation.
It’s now estimated that over 46 million Americans now own their fair share of the digital cryptocurrency Bitcoin. Luckily individuals can own fractions of a Bitcoin, instead of an entire coin.
But what is Bitcoin and why is it so valuable?
Bitcoin is a digital currency known as a cryptocurrency. Cryptocurrencies are most often supported by a blockchain network which is a public ledger that stores transactional data.
This was created by an anonymous individual or group called Satoshi Nakamoto after they released a white paper on a secure decentralized peer-to-peer digital currency.
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Bitcoin is completely open-source, so the code is public. No one has the authority over the entire network so that it remains a decentralized platform.
Sending and receiving Bitcoin is a simple and frictionless process. On mobile, it’s a quick scan and pay using a QR code and camera from the users’ digital wallet. There’s no sign-up or any verification needed before sending or receiving a payment.
Cryptocurrencies including BTC can be stored in a digital wallet. These can be on desktop, mobile, or hardware devices. These allow users to transact and store their crypto securely on their own chosen device.
Why is Bitcoin so Valuable?
Bitcoin is considered digital gold because of its limited supply. BTC has a maximum supply of 21 million coins, this resulted in a scarce-like view of the digital asset which currently holds a market cap of over $600 billion.
As Bitcoin grabs attention from individuals worldwide, the scarcity will continue to increase as more people acquire their fractions.
Another reason why Bitcoin is so valuable is that it was the first-ever cryptocurrency and blockchain network to be created. This has enabled the first-mover advantage throughout the cryptocurrency community.
There are many BTC investors and holders that believe Bitcoin is the only true cryptocurrency, any other coins are deemed “altcoins.”
Out of all the altcoins, Ethereum maintains the most sizable market cap, currently at the time of writing, hovering over $250 billion.
How to Buy Bitcoin
Obtaining your piece of BTC and other cryptocurrencies has become fairly easy over the past few years. Exchanges such as Coinbase, Binance, and Gemini make the process simple and effective. Once you own your piece of Bitcoin, you can transfer it anywhere you’d like, or store it safely offline in a hardware wallet.
While maintaining your BTC in a hardware wallet is the safest form to store digital assets, it also takes the most responsibility. Lost crypto cannot be recovered, and the network has no way of recognizing the owner of the coins without the correct private keys.
Some people would much rather have their funds maintained by the exchanges themselves.
The Importance
Regardless of what the world thinks about BTC and the blockchain network, it has enabled a variety of decentralized financial applications and other services. Blockchain networks have been recognized as not just a way to store transaction data, but also other data for education, medical, and identification purposes.
BTC has also shown that cryptocurrencies are a possible solution to the modern-day financial problems our economic system currency contains. Digital currencies could replace traditional government-issued fiat currencies if the majority decided to transition to decentralized equivalents.
Massive strides in innovative technologies have enabled and will continue to provide outstanding products and services which may soon one day be purchasable using Bitcoin and other cryptocurrencies worldwide. It’s only a matter of time before cryptocurrency adoption accelerates at an even faster rate.
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