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 What is Bitcoin? What are advantages of Bitcoin?

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Bitcoin (BTC) is a digital currency released as open-source software and invented by Satoshi Nakamoto. This is also the world’s first cryptocurrency. It laid the foundation for the development of the Crypto market. So now, let’s get to know more about Bitcoin. What is Bitcoin? Where can you buy it? And learn what are the advantages of Bitcoin?

What is Bitcoin?

Bitcoin was first established in 2009 by an anonymous profile; under the pseudonym of Satoshi Nakamoto; whose true identity remains unknown due to his desire; and vision for BTC to be standalone; an anonymous project without a central authority.

BTC is a cryptocurrency that runs on a peer-to-peer network without a central point of authority (decentralized). Instead, it is run and verified by users of the network (peer-to-peer). 

There are many characteristics of bitcoin that further make it unique; and unprecedented in the history of money. Some of these characteristics are that BTC is:

  • Limited in Supply – There will only ever be 21 million bitcoins in circulation.
  • Decentralized – This makes bitcoin a safer and more secure type of currency.
  • Borderless, cheaper, and faster – A bitcoin transaction in millions can be sent quickly anywhere on earth for cents.
  • Immutable – Impossible to forge or falsify.
  • Transparent – Blockchian records every transaction.
  • Private – Almost impossible for an outside person to identify the owner of a BTC wallet.

There are currently about 17 million bitcoins in circulation. There isn’t a central regulatory agency or government controlling the supply of bitcoins; meaning design can control the supply is.

People thought that BTC was designed to become a deflationary currency to combat the government’s use of inflation as a hidden taxation to redistribute earned wealth. Many people praise BTC for empowering the people; by overthrowing the currency printing powers of transient politicians.

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Advantages of BTC

So, you definitely know what BTC is. Now we will get to know the advantages of BTC. There are some advantages like the following:

Legal Gray Area

Major governments have largely remained on the sidelines; this has created both a sense of potential; and apprehension for Bitcoin proponents and critics respectively. BTC isn’t backed by a regulatory agency and a government would technically be ceding power by supporting a decentralized currency. Bitcoin’s price, however, tends to be very sensitive to any news concerning the US government’s opinion of cryptocurrencies. For example, when the SEC denied the approval of bitcoin-based exchange-traded-products — essentially bitcoin-backed assets on the stock market—in 2017, BTC’s price dropped 18%. Yet while government action will affect the price and adoption of Bitcoin; governments are unable to criminalize Bitcoin. In fact, governments such as the United States and China have invested in it in some capacity.

Exchange hacks

As stated above, an exchange hack has nothing to do with the integrity of the BTC system… but the market freaks out regardless. This trend seems to minimize as users see that cryptos recover from exchange hacks. As exchanges evolve and become more secure; this threat becomes less of an issue. Outside investments funneling into exchanges are providing the capital for them to grow stronger.

Illiquidity

This is mostly moot due to BTC’s $47 market cap but it still makes users sweat. It’s highly unlikely that Bitcoin’s price would plummet; and you’d be unable to take action, but it’s still unsettling.  As more investors invest, however, illiquidity becomes a negligible risk and as there will likely always be a buyer for Bitcoins waiting.

Volatility

This very reason many speculators are attracted to BTC is the same reason many potential users are hesitant to get involved. Users that look at BTC as a speculative investment option are essentially gambling on the process; and the future price of BTC is largely unknown. There are estimates that Bitcoin will both be worth pennies in a few years; while some predict that a single bitcoin will be worth $500k in three years. As new investors continue to invest and the market cap grows; Bitcoin’s price could become more stable.

Lack of adoption by businesses

The price volatility is a large reason that many businesses have yet to adopt Bitcoin as a form of payment. Increased consumer adoption and price stability will eventually mitigate this disadvantage.

Alt: Some advantages of Bitcoin

What is the exchange to buy Bitcoin?

So, you can buy BTC on exchanges that support BTC. We all know there are 2 types of exchanges. These are DEX and CEX. But currently, CEX exchange is the only exchange to buy and sell BTC.

Some reputable BTC exchanges you can refer to are: Remitano, Binance, Okex or Huobi, and so on,…

Users often prefer to buy Bitcoin on Remitano, because when you buy and sell BTC on this exchange, and you will be assured of safety, fast transactions, and no worries about being scammed.

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