What is Bitcoin and why are cryptocurrencies so popular?

Bitcoin has been the buzzword in the financial space. Indeed, Bitcoin has exploded onto the scene in recent years and many people and many large companies are now jumping on the Bitcoin or cryptocurrency train wanting a piece of the action.

People are totally new to the crypto space and are constantly asking themselves this question; “What is Bitcoin really?”

Well, for starters, bitcoin is actually a digital currency that is outside the control of any federal government, is used all over the world, and can be used to buy things like food, drinks, real estate, cars, and other things.

Why is Bitcoin so important?

Bitcoin is not susceptible to things like government control and fluctuations in foreign currencies. Bitcoin is backed by the full faith of (you) the individual and is strictly peer-to-peer.

This means that anyone completes transactions with Bitcoin, the first thing they realize is that it is much cheaper to use than trying to send money from one bank to another or use any other service that requires sending and receiving money internationally.

For example, if you wanted to send money, say to China or Japan, you would have to pay a fee from a bank and it would take hours or even days for that fee to get there.

If I use Bitcoin I can easily do it from my wallet or my cell phone or computer instantly without any of those fees. If you wanted to send, for example, gold and silver, it would take a lot of guards, it would take a long time and a lot of money to move ingots from one point to another. Bitcoin can do it again with a touch of a finger.

Why do people want to use Bitcoin?

The main reason is that Bitcoin is the answer to these destabilized governments and situations where money is no longer as valuable as it used to be. The money we have now; the fiat paper currency in our wallets is worthless and a year from now it will be worth even less.

We have even seen large companies showing interest in blockchain technology. A few weeks ago, a survey was sent to a handful of Amazon customers whether or not they would be interested in using a cryptocurrency if Amazon creates one. The results of that showed that many were very interested. Starbucks even hinted at the use of a blockchain mobile app. Walmart has even applied for a patent on a “smart package” that will use blockchain technology to track and authenticate packages.

Throughout our life, we have seen many changes in the way we shop, the way we watch movies, the way we listen to music, read books, buy cars, look for houses, now how we spend money and banking. Cryptocurrency is here to stay. If you haven’t already, it’s time for anyone to fully study cryptocurrencies and learn how to make the most of this trend that will continue to thrive over time.