Bitcoin became a widely used cryptocurrency and rose from obscurity since it was launched in 2009. Not only it managed to become a synonym of mainstream crypto adoption, but it is also the main reason why today there are over 4,000 altcoins. In this article, we explore how Bitcoin became a famous cryptocurrency, and it marked a new era of the implementation of new, innovative technology- blockchain technology.
Blockchain technology is a crucial factor that powered Bitcoin’s success and the success of any other virtual currency that was created afterward. The blockchain network is a technical infrastructure based on an autonomous peer-to-peer network of computer systems that are linked via cryptography and are responsible for the operations in the network.
As a distributed and decentralized ledger of transactions, it proved to be a highly secure payment system that is fully independent of financial institutions. This also means that Bitcoin isn’t controlled by the fluctuations of the financial markets, social unrests, political crises, recension, and other external events.
Some of the attributes that made Bitcoin a popular asset and come from the design of blockchain networks are low transaction fees, anonymity, transparent data in the blockchain network, and limited supply.
Both the processing time and the low transaction costs come from the fact the network is fully decentralized and the peer-to-peer structure among the nodes (computer systems). On average, the time needed to process one block of transactions is around 10 minutes.
Next, transparency of the data is allowed because it increases the security in the network as any potential errors can easily be spotted by any of the miners. Lastly, the anonymity of the users is one of the attributes only offered for BTC transactions, and it isn’t present with other fiat currencies.
The Surge of BTC Trading
Another reason why Bitcoin became a phenomenon is the rise of online trading sites, which made it extremely accessible for a lot of different retail investors. And, as we know, mining is something that requires a certain amount of dedication, skills, and upfront investment. One great trading platform is the Bitqh.app.
This automated trading app is designed to offer trading at a high win rate, and it has completely automated the process of trading, giving beginners an opportunity to trade online without having much experience. Also, you can gain up to 0 in a single day of trading if you make a deposit of 0.
Implementation of Blockchain
Another reason why Bitcoin became a huge success is the implementation of blockchain technology in many different sectors, including the public sector. Followmyvote is one type of application that is used to keep track of votes based on end-to-end verifiable blockchain technology. Consequently, it increases transparency and trust in the voting system because it’s based on blockchain technology. Furthermore, IBM has made multiple partnerships with different famous corporations like Walmart, for example, in order to create a secure and efficient supply chain management system based on blockchain technology.
It’s also worth mentioning that a lot of companies accept BTC payments, and they also support the mainstream adoption of Bitcoin. It’s very easy to accept Bitcoins, and companies don’t have any costs for receiving BTC transactions which is another advantage of implementing Bitcoin in businesses. On the other hand, owners of Bitcoin have a chance to use their BTC to buy services and products.
Bitcoin Market Demand
Bitcoin became famous due to its numerous advantages, and by 2021 it has been treated as a safe- haven asset. Plus, as we mentioned before, the entire system is created in order to function separately from the global financial system.
Therefore during 2020 and 2021, the price of Bitcoin continued to surge even though it wasn’t the first time Bitcoin has had a bull cycle. This time, it was quite different due to the scarce supply of BTC of 21 million, and furthermore, its available supply was cut in half.
So, there were numerous institutional investors like the Grayscale Bitcoin Trust Fund and many others who started to trade and invest in BTC, giving an incredible boost to the market demand for Bitcoin. In conclusion, it safe to say that the world is only getting aware of what Bitcoin and blockchain technology can offer.