Hearing the word cryptocurrency, the thought that follows everyone’s mind next is obviously ‘Bitcoin’. One of the most popular crypto currencies that is many a times used correspondingly with the word cryptocurrency. There are millions of people investing in this particular cryptocurrency on a daily basis. Bitcoin has helped a lot of people to become king of their crypto investment journey.
The virtual coin was introduced in the year 2009 by Satoshi Nakamoto. However, who developed the technology linked to bitcoin is not known till today. The day Bitcoin entered the virtual markets of the world, it created a buzz all around. People’s craze for the virtual coin never seems to meet ends.
How Does Bitcoin Function?
This virtual currency is based on the block chain technology and cryptography for noting down and sorting codes which results in processing of transactions. .
Bitcoin and the various other types of digital currencies available help in providing a decentralized payment method via the block chain technology.
The chain made via blocks is a public distributed ledger of every sine transaction carried out using Bitcoins. When bitcoins are sent or received, the chain gets bigger because of the addition of more and more blocks to the chain.
The blockchain communicates public data and it is made accessible to every single user. This gives credibility to the coin because the transaction is now traceable and cannot change.
Finishing a Bitcoin transaction depends on a procedure which is known as mining. For the addition of a block to the chain, a miner is required to use powerful computers which have the ability to solve maths questions. There are specialized devices made for mining if one does not feel like using computers for the process.
The process to mine bitcoins and other types of cryptos is energy sensitive and even has a bad impact on the environment. Cryptocurrency and blockchain technology have also had a huge impact on affiliate and performance marketing. For more information on affiliate marketing visit this site.
Reasons For The Extreme Popularity Of Bitcoin
The popularity gained by Bitcoin in just a decade seems unreal. There are several reasons that explain why bitcoin is still the most popular crypto. Follow the article till the end to know the reasons behind this extreme popularity for bitcoins that exists till today.
1. A Major Strong Start
The early existence and discovery of bitcoin over it’s other counterparts, gives it a major advantage. It existed even when other virtual currencies did not. It was first found out in 2009 and other types of cryptocurrencies started to emerge only after 2011. By 2011, Bitcoin had already become popular and was used by people and adopters for transferring money and also to trade with other stuff. It’s value even reached a good thirteen dollars in just a little time.
When other counterparts or counter currencies were discovered, you will be surprised to know the amazing number of bitcoins that were already being circulated by then. It was a huge eight million coins. Bitcoin at that time had a market capitalization of over a hundred million dollars. This was extreme! There were already more than 8 million. By 2012 Bitcoin took a major proportion of the volume of the crypto market. Till date there has not been any other popular currency that has been able to reach a capitalization even half of that of bitcoin.
2. Acceptance And Trust By Masses
With the growth of the popular base and valuation of Bitcoin, the number of people who invested in it started to soar an ever high. People started trusting this virtual currency as a credible option to try. What made more and more people interested was the volatility related to the currency. The coin’s value used to go up and low significantly in a single day. This looked very alluring to people who were interested in gaining more from the viable potential in a rather short time.
More and more people started using bitcoin as a credible and legitimate coin for payments. In 2010, two pizzas were bought using bitcoins!! In today’s times almost every other firm accepts bitcoin as a legitimate source of payment.
Bitcoin is considered as a standard value which helps in the determination and checking of valuation of every other type of crypto currency available. People have been trying their best to get bitcoins into the stream of legal tenders that would make these virtual coins a legitimate form of payment across the world’s markets. Many private and big companies have been a major factor behind proving the blast to the valuation and popularity of bitcoins. They even pay their employees suing these tokens and provide them with bitcoin related benefits.
3. The Popular Vote
In 2012, a prominent television drama ‘The Good Wife’ aired an episode that primarily focused on bitcoins. The name of the episode was ‘Bitcoin for Dummies’. Not just this, but there have been many events when bitcoin found place in the popular narratives and instances around the globe. The story wasn’t roses always. There were times when bitcoins were linked to the black markets because of the absence of centralized regulation for them. .
Nonetheless, the image and reputation of Bitcoin was improved and popularized later, when its price started to soar and reach a high $20,000 in 2017. Bitcoin became the talk of the town and there was no one who wasn’t shocked with the ultimate boost in the valuation of the crypto currency and the way people turned millionaires through it.
No matter there are other popular currencies existent in the world today, the popularity of bitcoin stands unbeatable. The trust it has gained in the hearts of the people as a legit mode of payment cannot be easily replaced by any other virtual token. With a market cap that stands unbeatable, Bitcoin still remains the king of all crypto currencies existent in the world today and would continue being so for a long time to come.