Bitcoin (BTC) is a cryptocurrency that has been around for over 10 years. Yet it is still as popular as ever. Why ? Response elements.
We are in 2009, after the financial crisis that shook the world. Information will soon give rise toin the corners of the planet: the exit of the . This created by Satoshi Nakamoto – we still do not know the real identity of Satoshi – therefore becomes the first electronic money worthy of the name. More than a decade after its launch, it continues to lead the way in cryptocurrency.
What the(BTC), the oldest asset , does it owe its success? Here are some reasons.
Bitcoin (BTC), the practical asset for making transfers
Transfer fromusing traditional financial institutions takes time and involves relatively high transaction costs. These fees increase even more when the amount to be transferred is large. Bitcoin (BTC) is breaking the trend. Indeed, it gives the possibility to its users to make fast transfers in the world, while saving money. What is more, transfers are made without the intermediary of a third party. Let’s explain ourselves.
A BTC user who lives in the United States wants to transfer to another user who lives in France. If he sends a small amount of BTC, the operation can be relatively expensive. Conversely, if he sends a large amount, the transaction is cheaper. For example, for a transfer of $ 45 million, the transaction fee is only about $ 50. But if it was fiat currency, the transaction fees would be higher.
The absence of an intermediary
Bitcoin (BTC), like other electronic currencies, is decentralized. This means that it escapes the control of institutions like banks and governments. Thus, its users benefit from a total freedom which remains unimaginable in the system of fiat money. How is it possible ? Here again, an explanation is in order.
BTC relies on a network of blockchains – the – which constitutes a public. It gathers information on transactions, and this information is not accessible to banks and no network cannot block other users.
What should we deduce from it? No one can ever stop you from making Bitcoin (BTC) transactions. This cryptocurrency is made to allow “to make online payments directly from one third to another without going through a financial institution”, as Satoshi Nakamoto stated in the Bitcoin (BTC) white paper published on October 31. 2008.
The scarcity of Bitcoin (BTC)
By definition, Bitcoin (BTC) is a rare cryptocurrency. Hishas a cap of 21 million . As of the writing of this article, around 18.5 million BTC has already been generated. According to analysts, the last BTC will be mined in 2140. After this year, no more BTCs will exist.
On some points, it is possible to compare the BTC tofirst, because the latter are also rare, at least in theory. Indeed, in fact, each year, new from are discovered. Likewise, experts regularly spot new sources for mining gold and . These findings make it difficult to calculate the real scarcity of these materials. But Bitcoin (BTC) does not suffer from any of these issues.
Bitcoin (BTC) offers a high level of security
Each year, theunveil new techniques as effective as each other to successfully rob financial institutions. Failing to organize a robbery of a bank, they use to hack institutional networks.
Conversely, with Bitcoin (BTC), it is not possible to implement a heist strategy. As we said, there is no financial entity that controls cryptocurrency. In addition, BTC is electronic money; she is notlike fiat currency.
But is BTC vulnerable to hacker attacks? In reality, no! For a serious attack to be truly launched against theBitcoin (BTC), the hacker would have to control at least 51% of miners. However, it is impossible.
That the Bitcoin blockchain (BTC) is tamper-proof does not mean that investors are immune to all danger. Criminals have a multitude of techniques to obtain their, and the is one of their favorite weapons. To avoid it, several measures can be taken. Among other things, it is recommended to move the purchased crypto coins to a crypt.
A blockchain-level trust system
Thousands of miners use the Bitcoin (BTC) blockchain. There is no absurd formula to make all these people collaborate in aof confidence and serenity. To prevent imperfect information from creeping into the blockchain, Satoshi Nakamoto created the system (Proof of work).
Thanks to this system, only the fastest miners can add a block to the blockchain. In exchange, they receive a reward: Bitcoin (BTC). This mode of operation helps to build confidence in the source code of the cryptocurrency. Note that the Proof of Work mechanism remains accessible to the public, which allows everyone to check whether there is any error in the verification of transactions.
Bitcoin (BTC) for investing
A good investment product should be durable, portable and scarce. This is the case with Bitcoin (BTC). It is also rare that raw materials andprecious. In addition, it is gradually acquiring a reputation as an alternative to gold and it is democratic.
Is Bitcoin (BTC) portable? Absoutely. Indeed, it is based on a codedigital. Thus, it can be accessed anywhere as long as the user is logged in to and that he has his .
Is Bitcoin (BTC) accepted? Although it is adopted in a few countries – in El Salvador it has become legal tender – it is not yet fully accepted as a means of payment in some regions. Nevertheless, efforts are being made on both sides to ensure that the oldest cryptocurrency one day becomes a respected currency.
Bitcoin (BTC) in Africa
In recent years, BTC has become a widely used digital currency in Africa. Slowly, but surely, it is essential in several countries of the continent. For example, in Nigeria, it represents 4.07% of transactions (2018 figure). After Nigeria, there are South Africa and Kenya, with 1.55% and 0.39% of transfers respectively. According to Paxful, “BTC trading on the African continent has grown 64% in just one year.”
The search results on the Google engine are also clues to the popularity of Bitcoin (BTC) on the continent. In the past 12 months, there has been more searches for the keyword “Bitcoin” in Nigeria than in other countries.
Bitcoin (BTC) is a cryptocurrency that is growing in popularity, despite being over 10 years old. The digital asset is essential on several continents, including Africa, and infiltrates economic systems. If it is so popular, it is because it offers an optimal level of security and allows transactions to be carried out with ease.