2009 ushered in a new era, the era of cryptocurrencies through Bitcoin. This cryptocurrency was the first-ever digital currency developed by an anonymous developer named Satoshi Nakamoto. Since then, Bitcoin has gone a long way, and the expansion of this virtual money has encouraged the creation of additional virtual currencies. These virtual currencies are either used as modes of payment or as utility and security tokens in other blockchains.
Since the emergence of Bitcoin, the people who have become wealthy through this currency are innumerable, most of them were those who believed in the virtual currency even when it seemed like it was nothing to write home about. But it is still not yet late to invest in cryptocurrencies. For those willing to join the bandwagon but want immediate returns, you can consider trading with automated trading robots such as BitIQ. BitIQ, among several other trading robots, has assisted traders in making a considerable profit on their investments. To learn more about how this robot works, visit BitIQ website review.
Why Bitcoin Is The Largest And Most Popular Virtual Currency
Despite the high volatility Bitcoin has experienced in the past years, it is pretty surprising that it is still the largest and most popular cryptocurrency. When Bitcoin was first created, it was introduced as an alternative to the traditional currency. Because fiat currencies are centralized and frequently affected by the economy and inflation, this idea appealed to the people. Bitcoin and other cryptocurrencies are decentralized and not controlled by any government authorities and are not affected by these factors.
Bitcoin avoided money printing-induced inflation by limiting the number of units ever created. Bitcoin does not require financial institutions to facilitate transactions or verify ownership because it is based on peer-to-peer blockchain technology. In the crypto market, bitcoin is the most popular, and it greatly influences the crypto market and the value of other cryptocurrencies. Some of the factors that cause Bitcoin to be the most popular include:
Advantage of being the first cryptocurrency
While the development of some digital currencies was before Bitcoin came to be, Bitcoin was the first one that proved to be a valid alternative form of currency. It came after the 2008 financial crisis when everyone needed a decentralized currency that would not be affected by the economic crisis and inflation. This cryptocurrency arose in a time of desperate need, and by being the first to draw public attention, it was able to seize the lead in the cryptocurrency market.
The supply and demand economics of cryptocurrency
One of the reasons bitcoin is so valuable is its demand and supply economics. Bitcoin follows a unique protocol that allows only a 21million tokens to be in circulation at a single time, and above 18million tokens are currently in circulation. The demand for this cryptocurrency is more than the supply, which is the reason for its excellent purchasing power.
Blockchain technology
One of the greatest strengths of bitcoin is its technology, which mostly is what gives this currency an edge over other cryptocurrencies. Bitcoin runs on blockchain technology, and Bitcoin transactions are verified and validated via this digital shared ledger. This technology is why bitcoin transactions are transparent and secured, as it makes it nearly impossible for third parties to manipulate. It also prevents users’ data from being accessed by third parties. The security of this cryptocurrency is why many people prefer it to other cryptocurrencies.
Also, blockchain technology is helpful in the cryptocurrency industry and in other sectors like manufacturing, the healthcare sector, real estate, and the like, which has greatly improved Bitcoin’s reputation and credibility.
Conclusion
Bitcoin is extremely valuable among other cryptocurrencies. It is the first widely accepted cryptocurrency that relies on blockchain technology. Its supply and demand economics makes it the most popular cryptocurrency. And most users prefer it because it is a highly convenient mode of transaction compared to the traditional payment method. And also because of the security that its blockchain technology offers.
