What is Bitcoin and why is cryptocurrency so popular?

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

People who are brand new to the cryptocurrency space ask this question all the time; “What exactly is Bitcoin?”

Well, for starters, bitcoin is actually a digital currency that is beyond the control of any federal government, is used worldwide, and can be used to buy things like your food, drinks, real estate, cars, and more.

Why is Bitcoin so important?

Bitcoin is not subject to things like government control and fluctuations in foreign currencies. Bitcoin is backed by the full faith of an individual (you) 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 bank to bank 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 have a fee from the bank and it would take hours or even days for that money to get there.

If I use Bitcoin, I can easily do it from my wallet or mobile phone or computer instantly without any of those fees. If I wanted to send for example gold and silver, it would require many guards, it would take a lot of time and a lot of money to move the bullion from point to point. Bitcoin can do it again with the 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 paper fiat currency that is in our wallets is worthless 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 survey went out to a handful of Amazon customers to see if they would be interested in using a cryptocurrency if Amazon created one. The results showed that many were very interested. Starbucks has even hinted at using a blockchain mobile app. Walmart has even filed for a patent for a “smart package” that will use blockchain technology to track and authenticate packages.

In our lifetime we have seen many changes happen from the way we shop, watch movies, listen to music, read books, buy cars, look for homes, now how we spend money and bank. Cryptocurrency is here to stay. If you haven’t already, it’s time for anyone to fully study cryptocurrency and learn how to take full advantage of this trend that will continue to advance over time.