What is Bitcoin?
Bitcoin is the first decentralized cryptocurrency ever invented by Satoshi Nakamoto, whose identity is not known, and released in 2009. Because Bitcoin was the first cryptocurrency to exist, all digital cryptocurrencies created since then are called Altcoins. Dash, Ethereum, Ripple and hundreds of other coins are Altcoins because they are not Bitcoin.
Bitcoin is completely digital, designed to be ‘self-contained’ for its value, with no need for banks or other middlemen to move or store the money. Bitcoin transactions are irreversible.
Once you own Bitcoin, it behaves like physical gold: it possesses value and trades just as if it was nuggets of gold in your pocket. You can use your Bitcoins to purchase goods and services on and offline, or you can tuck them away and hope that their value increases over the years.
Why Bitcoin? (and cryptocurrencies in general)...
- Bitcoin is becoming more and more available to the layman.
There are more and more friendly wallets, video tutorials, crypto debit cards etc. Today it is much easier to use Bitcoin than 5 years ago. And in 5 years it will be even easier.
- An increasing number of people with lack trust in government and banking system
Scandals regarding banking crisis, bail-in, madness of Venezuela or India make people look for alternatives.
- Bitcoin’s age
The longer the history of technology or invention is, the more people become confident about it. More and more people are realizing that Bitcoin will not fall.
- Growing number of Bitcoin users
Because there is a limited number of coins, more Bitcoin users mean rarer coins - and so the higher price. A larger number of users also means an increase in the use of coins by Bitcoin becoming more useful as a system.
- Increasing number of internet users
Half of the earth’s population still does not have any access to the Internet. The growing number of new internet users also means an increasing number of cryptocurrency users.
- The increasing acceptance of Bitcoin as a store of value
Factors #1 and #9 influence attractiveness as a store of value which in turn increases popularity (#2).
- Increasing assimilation of Blockchain by various types of industries
The more people trust in Blockchain, the more they trust the currencies based on it.
- Legal status of cryptocurrencies becomes clear
Some countries have already introduced Bitcoin into their tax and legal systems. More and more people can be sure that they do not break the law by using cryptocurrencies.
- Cryptocurrencies technological development
Cryptocurrencies are getting better: bug fixes, new features and much more.
- Increasing number of lost coins
Due to the fact that people sometimes lose their wallets, coins become more and more scarce
- The world is turning to the digital economy
Digital money is becoming to be a norm, which increases trust in cryptocurrencies
- Renewable energy sources
Solar panels have become the cheapest source of energy in some countries, and the price of them is falling dramatically. Cheaper energy means more decentralized mining, thanks to which the system is more durable.