Bitcoin is the most popular cryptocurrency at the moment, with millions of users and investors flocking to it in hopes of getting rich fast. If you’re not sure why Bitcoin has become so popular, you aren’t alone. It may seem like something straight out of science fiction, but Bitcoin has been around since 2009. And believe it or not, its popularity has been steadily increasing ever since. So what makes Bitcoin so special? Is this just a fad, or does it have real potential?
What Exactly is Bitcoin?
First and foremost, let’s define exactly what we mean by Bitcoin. Bitcoin is a cryptocurrency that uses cryptography to generate coins and verify transactions on its network. A pseudonymous creator (or group of creators) known as Satoshi Nakamoto first published a white paper describing their idea for a new currency back in 2008.
What Makes Bitcoin Valuable
It’s no secret that bitcoin has become incredibly popular as of late. Since its inception in 2009, thousands of merchants have adopted it as a form of payment. This is despite a lack of understanding and trust from people who prefer to use credit cards for their purchases. As a result, many investors believe that bitcoins will continue to appreciate in value. For something to be valuable, it must have demand and utility.
Where Does the Value Come From?
Let’s back up a bit to understand what a currency actually is and why it has value. Currency is simply a means of exchange. For something to be a currency, people must agree that certain objects have value by agreeing to accept them as payment for goods or services rendered. That’s not always obvious, though. For example, wampum was used by native tribes long before Europeans arrived in North America.
How Did Bitcoin Become So Popular
There are plenty of factors that have contributed to bitcoin’s popularity, but we’ll cover four major ones here. One is stability. It was volatile for a long time, and it still moves up and down in value compared to conventional currencies like U.S. dollars or British pounds. But its price has also grown steadily in recent years — something you can’t say about other altcoins.
How to Buy Bitcoin
So, how to buy bitcoin? If you’re interested in purchasing bitcoins, it’s a good idea to set up an account with one of these sites so that you can store your bitcoins safely. Most of them offer different types of portfolios. Some allow you to trade on margin, and some don’t. Some will only sell or buy Bitcoins, and others are full-fledged trading platforms for other digital assets as well. It is important to research which platform is best for you and how exactly they operate before making any decisions.
You have to look at three things supply, demand, and utility. According to the experts at SoFi Invest, “The supply of bitcoin has limits due to its protocol; there will never be more than 21 million bitcoins in existence.”