You might have been hearing a lot of buzz about the Bitcoin and other cryptocurrencies in general. In this article, you will learn some facts you need to know about the Bitcoin.
The year 2009 marked the beginning of the cryptocurrency revolution as we know it. Takeshi Nakatomo’s Bitcoin was born and the financial world witnessed a wide variety of reactions.
With an initial coin offering of less than 0.5 dollars, many financial experts ridiculed this new digital currency that promised to be the future.
Today, the bitcoin has grown in leaps and bounds in the space of 8 years and is currently at its all time high exchanging at 1 BTC = $11,000.
Now imagine you had just 10 Bitcoins from when it was as low as $0.5 for one.
Your guess is as good as mine how much money that will be in this day.
As it stands now, public perception of the Bitcoin has increased leading to a proliferation of other cryptocurrencies like the Ethereum, Ripple, Altcoins etc.
This increased perception has led to an increased demand for it as more people become more aware of the advantages of cryptocurrencies compared to regular currencies.
Subsequently, an increase in demand has caused a progressive increase in value of the Bitcoin with 2017 being the year recording the most growth.
As at this time last year, the Bitcoin was struggling to maintain the $1000-to-1BTC mark.
Even as at May-June, the exchange rate between these two currencies was still around $1,700 – 1 BTC.
The question that begs an answer is, why this astronomical growth?
The answer lies in the advantages the Bitcoin has as a digital currency over traditional currencies.
Its advantages includes the following:
- it uses a secured network called Blockchain technology that ensures impervious security from hackers, malware or compromise of any sort.
- it offers peer-to-peer transaction processing without any intrusion from third party transaction processors like banks and other financial institutions
- there are no spurious and unnecessary charges and fess when transactions are conducted. Transaction fees are extremely low.
- It offers absence of any central command center as transaction initiation and completion is between two parties – the buyer and the seller. There’s no control in any form from the government or banks.
- Its Blockchain technology platform offers speedy transaction processing and reconciliation in seconds. Transaction value reflects as soon as they’re carried out using a mobile phone.
- Offers convenience for users as all transactions can be handled on a mobile phone. There are no brick and mortar offices to visit as everything is online in real time.
- Bitcoin transactions are immutable and eternal. Cases of a user manipulating a transaction record or receipt is common in normal currency transactions. This isn’t possible when Bitcoin is used for transactions, the Blockchain technology platform maintains all records through a secure encryption process and both parties to a transaction get the same transaction records in real time.
Given these advantages, the Bitcoin has become the benchmark to measure other cryptocurrencies.
Only the Ethereum come close in terms of value and currently goes for $500 for 1 Ethereum coin.
Investors who are skeptical about the Bitcoin can go with Ethereum and others with good potential.
You might want to as how investors or users make their money.
Bitcoin like any other currency is stored in a secure e-wallet called a Blockchain wallet.
This wallet provides secure encryption for transaction processing and management.
All a user needs to do is to buy the Bitcoin and stock up, then sell when the value appreciates significantly to make your money.
If you had around $30 in a wallet, say since October last year and you left there untouched, the value at this time would be around $450.
That’s an 15 times increment. Now imagine you had 1,000 there.
My forecast however, is that the Bitcoin will continue to rise in value and will hit as high as $25,000 before mid-2018, if this growth trend is not arrested by any events.
Still thinking of investing in the Bitcoin?
Let’s hear your views about this global digital currency and what it portends for the future in the comments section below.
Don’t forget to share too!