Cryptocurrency is one of the major technology conversation points these days. It has taken the world by storm and is constantly in the headlines. How did something so intangible become one of the most exciting innovations of the past few decades? After all, it is a digital currency, and very few people can fully explain how it works. Well, it all started with Bitcoin back in 2009-2010. It was one of the first digital currencies of its kind and was stored in a distributed ledger called a blockchain. Then, the rest is history. What made Bitcoin such a phenomenon in the past few years, though?
Recently, cryptocurrency has been all over the headlines. This is because it is now quite accessible. Anyone with a decent internet connection, such as the one you get with Cox bundles, can now buy and sell Bitcoin. Resultantly, it has become a bustling market, with prices fluctuating often. It started off as a penny stock worth $0 and is now worth over $50,000. Anyone who invested, in the beginning, is now a millionaire or even a billionaire. However, there’s a lot more to Bitcoin’s ongoing resurgence and popularity.
Exciting Blockchain Technology
Bitcoin really brought forward the benefits of blockchain technology. Blockchain basically is a series of distributed ledgers with no fixed ownership. This means that it is nearly impossible to hack into it.
Resultantly, Bitcoin is one of the most secure online assets you can find. Its technology has revolutionized digital security and eCommerce. Therefore, people feel safe investing in it, as most other financial options have some security risks or loopholes.
Increase In Ransomware
Over the years, more and more people have been falling victim to ransomware. This is particularly true for corporations. Malicious parties hack into their important data and demand payment to return these assets. Now, they often demand these ransoms in Bitcoin. This is because it is untraceable, and most countries still have to work on how to incorporate cryptocurrency into their cybersecurity and financial laws.
Therefore, they are the perfect currency for ransomware and other such activities, due to their sheer untraceability. There has been a surge in these activities due to such criminal acts becoming more sophisticated and nefarious as they evolve.
Cheaper Money Transfers
Transferring money from one country to another is a hassle with the current conventional banking methods. You need to pay extra fees and have to go through multiple conversion steps, taking a few days and a lot of documentation.
However, with Bitcoin, all these steps are not needed. People can just transfer money instantly and receive it right then too. Furthermore, as cryptocurrency laws are still in their infancy, there are no taxes on it currently. Therefore, international and local money transfers are much easier with Bitcoin, making it a popular option.
Social Media Hype
A major reason why Bitcoin gained so much traction was the social media hype. Other cryptocurrencies which launched at around the same time have been nowhere as successful. After all, most laypeople learned about Bitcoin through social media. This shows the power of these platforms in influencing world markets.
Recently, major companies and people have also started expressing their support for Bitcoin and other cryptocurrencies. The biggest example is currently Elon Musk. He has constantly been supporting Bitcoin and other cryptocurrencies, He has been tweeting about it, and its various price fluctuations, generating speculation in the market. As cryptocurrency functions like the stock market, speculation plays a major part in its success. Therefore, such social media hype has made Bitcoin a global phenomenon.
Initially, most governments and conventional banking systems were quite skeptical about Bitcoin. Over the past few years, however, they have come to realize its increasing importance. Many companies such as Tesla now accept Bitcoin as payment. Conventional banks are also following suit and bringing cryptocurrencies into their portfolios.
This increasing acceptability means that Bitcoin is all set to become a popular investment and payment option. Once certain laws are passed regarding its functions as legal tender, it may even become a good replacement for physical currency.
In conclusion, Bitcoin’s rising popularity is due to a combination of factors. Furthermore, it is all set to become part of the conventional banking systems, so it will be even more present in the coming years.