While Bitcoin has been around for 11 years, it was only in the last few years that the cryptocurrency became more widely known. However, it wasn’t until just a year ago that the cryptocurrency became accepted across the board as a viable payment option and investment tool. As we explore the rise and rise of the digital currency, let’s check in with the many benefits of Bitcoin.
Bitcoin’s Rise To The Top
As the first cryptocurrency to come into existence, Bitcoin has fought a long and hard battle to get the universal recognition it deserves. While this wasn’t something it was chasing, it was indeed a title deserved. The cryptocurrency took years to break into the mainstream space, first becoming known in developers and cryptographers circles, and then slowly infiltrating the tech investor space. It was years before the cryptocurrency made international headlines, which was for the most part due to the bull run it experienced in 2017 that saw the incredible rise and inevitable crash in price. While the media attention was not necessarily in a positive light, it did spread the word about the digital currency and attract much new interest.
It wasn’t until 2020 that the cryptocurrency really solidified its setting in the global financial landscape. When the pandemic struck markets around the world in March, including everything from stock markets to industries to entire economies, the crypto market was no exception. In a matter of days Bitcoin lost 84% of its value, plummeting from $9,112 to $4,943 in just 10 days. It was what happened next that many didn’t see coming. Slowly but surely Bitcoin built back its value, igniting a supercharged bull run that would continue well into the next year, 2021. This spurred many Wall Street and retail investors to move their funds from the fragile fiat to Bitcoin. With stimulus checks and an increase in money printing, the US dollar became a weaker store of value than the digital currency.
By the third quarter many companies were now moving their reserves from the US dollar to Bitcoin, a move not many could have predicted. Full of surprises and innovative moves, PayPal also announced that it would soon be supporting cryptocurrencies, allowing users initially to buy, sell and hold (Bitcoin, Ethereum, Litecoin and Bitcoin Cash) and then ultimately use the cryptocurrencies to pay for goods and services on the platform. This sent both the BTC and PayPal stock prices soaring, and that was only the beginning. From November 2020 to February 2021 the original cryptocurrency hit record high after record high, with the latest ATH (all time high) sitting at $58,330.57 reached on 21 February.
The Many Benefits Of Bitcoin
As we celebrate Bitcoin’s rise to the top, let’s revisit all the reasons why this digital currency changed the financial landscape as we know it:
Instead of having to rely on third parties to process transactions, Bitcoin operates in an entirely peer to peer based manner and instead relies on a network of anonymous nodes around the world following a specific protocol in order to maintain the network.
Permissionless And Censorship Resistance
Free from the regulations of financial institutions, governments and banks, there is no single entity in charge that is able to block or freeze your assets or use of the network. As Bitcoin is a digital currency, it is also free from any border limitations when transferring funds internationally. You and you alone are in charge of your own Bitcoin.
Satoshi Nakamoto designed Bitcoin to be deflationary in nature, ensuring that it won’t succumb to the rising inflation rates that fiat currencies experience. Nakamoto designed Bitcoin to only ever have 21 million coins in existence, and on top of that ensured that they are released into the network in an orderly and controlled manner.
Effective Payment System
Designed to facilitate peer to peer payments from any corner of the globe, near instantly and at low cost, Bitcoin is a far superior tool to transferring money internationally than fiat gateways. The network is also easy to use, and accessible to anyone in the world with an internet connection.
The entire Bitcoin network is open source allowing developers from all walks of life to contribute. This works both ways as this also allows developers to use Bitcoin’s code to build their own networks. The entire system is designed to be transparent allowing innovation to flourish.
Despite what Warren Buffett might say, Bitcoin holds real value. This is proven on a daily basis as more and more merchants accept Bitcoin as a payment method. There are countless vendors around the world that accept the cryptocurrency, and that is likely to continue growing.
Anonymous and Pseudonymous
Depending how you use it, Bitcoin can work as either an anonymous or pseudonymous payment system. If you wish to keep your spending habits away from spying governments, Bitcoin and cryptocurrencies in general may be able to offer this level of privacy, however it’s always important to check the laws and tax regulations in your region. Should someone know or find out your wallet address, they are able to track your transaction history on the blockchain.
Bitcoin Is Freedom
Catering to the banked and unbanked populations of the world, Bitcoin offers a financial freedom we have not witnessed before. Alongside the scarcity aspect, Bitcoin is destined to become a powerful part of our financial landscape. If you’re looking to onboard the cryptocurrency quickly and efficiently, you can buy Bitcoin and a range of other cryptocurrencies securely through Oobit using simply your credit or debit card. Welcome to the future!