Reality Paper

Why should you use Bitcoin?

Introduction:

The idea of cryptocurrency came up as a proposition to devise a peer-to-peer electronic currency system in the year 2008. It was a pretty obscure idea in the initial years. Bitcoin gained widespread popularity during its bull run in the year 2017 when the value showed a record growth of over 300% in a period of a few months. The value went up from around 5000 USD to 20,000 USD in three months. Since then, several cryptocurrencies with more sophisticated algorithms have come to up- Ethereum, Litecoin, Ripple to name a few.

Despite all the new currencies coming up regularly- Bitcoin has retained its popularity. With an investment of 1.5 billion USD on this currency by the much-acclaimed Tesla CEO Elon Musk, Bitcoin has made it to the headlines once again. Crypto has the potential to make transactions easy and efficient. To know the reasons behind it let us leapfrog to the most important questions- Why is Bitcoin so popular? What are the reasons to use Bitcoin instead of traditional currencies? Let us find out.

What makes Bitcoin a better alternative to normal currency?

Bitcoin uses a cutting-edge technology that is known as the blockchain database. The blockchain is a technology where a transaction after being computed and approved is stored as a block. Newer transactions are recorded as blocks and are linked to previous blocks (thus the name blockchain). Unlike traditional ledger systems, Bitcoin blockchain is much more reliable and efficient, as the database is controlled in a decentralized manner. It means, the blockchains are stored in computer networks spread across the world. This system minimizes the inaccuracy of the traditional ledger system, as all the blockchains are stored in multiple computers (also known as ‘nods’), so wrong calculation becomes virtually impossible because that data is always referred to the blockchain database stored in other computers somewhere else. You can also take the reference from the gold trading app to clarify your doubt as per your requirements. 

The blockchain has made transactions more time-efficient by removing the formalities, waiting time of approval of the traditional banking system. It is for this reason Bitcoin is more preferable while making transaction across borders, which is a normal banking system takes a couple of days. Through Bitcoin, it is possible to make such a transaction in few minutes.

What are the reasons to use Bitcoin? 

We have summed up the advantages of using Bitcoin for transactions.

Conclusion:

Bitcoin has reached a new high of 50,000 USD in 2021. Consider all the possible advantages and disadvantages before investing.

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