What is Bitcoin and why is the cryptocurrency so popular?

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

People brand new to the cryptocurrency space constantly ask 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 your food, your drinks, real estate, cars and other things.

Why is Bitcoin so important?

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

This means that anyone transacting 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 using any other service that requires sending and receiving money internationally.

For example, if I wanted to send money to, say, China or Japan, I would have to collect a fee from a bank, and it would take hours or even days for that fee to reach that money.

If I use Bitcoin, I can easily do it from my wallet, mobile phone or computer instantly without any of these fees. If I wanted to ship, say, gold and silver, I would need a lot of guards, it would take a lot of time and a lot of money to move the bullion from one point to another. Bitcoin can do it again with a tap of a finger.

Why do people want to use Bitcoin?

The main reason is because 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 worth nothing and will be worth even less in a year.

We have even seen large companies showing interest in blockchain technology. A few weeks ago, a handful of Amazon customers were polled on whether or not they would be interested in using a cryptocurrency if Amazon created one. The results of this showed that many were very interested. Starbucks even hinted at using 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 lives we have seen many changes from the way we shop, the way we watch movies, the way we listen to music, read books, buy cars, look for homes, 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 cryptocurrency and learn how to make the most of this trend that will continue to thrive over time.