There is no shame if someone is not familiar with the concept of Bitcoin or cryptocurrencies. This guide will let you understand what Bitcoin really means and that is its benefit.
Crypto is a kind of currency that is as good as any other normal currencies such as the US Dollar or Euro. It is usable as a normal currency for purchasing services and can even be traded, sold, or purchased. However, there are two prominent elements that make crypto different from normal currencies. The first thing is that it is a paperless currency. Neither it is printed nor it is issued by any bank, instead, it has no physical existence and is produced by private parties.
Unique Nature of Crypto
The second difference is that it is free from any supervisory or monitory control. While normal currencies are issued by Governments and Government-run central banks, crypto is not governed by any government or bank. This is why crypto is regarded as a “decentralized currency” which is free from any sort of regulatory, supervisory, or monitoring control. The sole object of crypto creation was based on the aspect that it will not be a type of currency that is governed by a central bank.
Why Crypto is So Popular
There are two major reasons which are making crypto a popular product. Firstly, there are unique features comprised in crypto which, according to the majority, is a source of trading and storing value. Secondly, the whole world is now in consensus that Bitcoin has an intrinsic value. Crypto trading can be defined as “bartering”, which was an ancient practice of trading. During the barter, two persons trade an item with another item. For instance, if one were to obtain milk, then the other person would acquire bread and given in return the milk.
From “Barter” to Crypto
But even the ancient time’s generations realized that they cannot trade the gold with either milk or bread. Gold is a precious metal and therefore cannot trade hands for minor things. Similarly, crypto is a form of barter, where usually you pay in cash and get yourself precious crypto. For example, currently, Bitcoin is the most valued cryptocurrency whose price is around US$ 40,000. You cannot simply pay a dollar to acquire Bitcoin. It is not 2009 when a Bitcoin was actually sold for US$ 1. It is now 40,000 thousand times bigger than what it was at the time of inception. It has become precious and has even gone beyond the gold as well.
Bitcoin’s Ability to Shock The World
Crypto experts believe that in the coming times, presumably after 3 to 5 years, Bitcoin’s value would be somewhere around US$ 100,000. It could even happen before the expected time because in the month of May, Bitcoin was traded even for an amount of US$ 64,000. It was the best value Bitcoin ever had. But a massive dip occurring within the entire crypto-economy brought down Bitcoin. The value dropped immediately from US$ 64,000 to under US$ 30,000. Since then Bitcoin is gradually coming back and has recovered US$ 10,000. If it continues to go in the same pace then it would not be wrong to assume that at the end of 2021, the value will be around US$ 100,000.
The problem is not with Bitcoin but it relates to the crypto market. There are various factors that impact the crypto economy. For instance, Bitcoin was disintegrated by one of its great proponents i.e. Tesla Inc. But the disintegration is temporary because the company has re-affirmed that it will soon be reinstating Bitcoin. The other reason is the production of Bitcoin units which process is known as “Bitcoin mining”. The mining industry is different from the crypto trade industry. However, the industry of Bitcoin mining is dominated by China while a large number of Bitcoiners are Americans. Since both countries are on a trade war, therefore, the mining industry was targeted by the US Government to hurt its rival.
Apparently, the situation is easing up between the two countries as both countries have their own stake in Bitcoin. Both are forced to lay their arms against the popularity of Bitcoin which continues to grow extraordinarily.
Which Side You Are On?
It is expected that the mining process will be cleaned up entirely and once again Bitcoin will re-develop carefully its lost reputation. It is also expected that this time Bitcoin will have another long-term rally of the price surge. Of course, those who love Bitcoin or rely on the crypto trade business would be on the winning side.