While you have millions of enthusiasts who will defend Bitcoin selflessly anywhere you call them, it is true that this should not hold you back from asking the right questions. When you invest in something, you spend your hard-earned cash. You can’t just spend your money without asking questions or under the pressure of someone pushing you into a particular direction. If you are not sure what Bitcoin does, you have every right to know the truth. You have the right to ask as many questions as possible to reach the truth.
Millions of people are buying, selling, and trading BTC, which is and has been the biggest cryptocurrency in the world for many years. There has to be something about this digital coin that has made so many people crazy about it, right? It is really a product that solves a problem or is it just a fad that will slowly go away? Let’s take a look at a few things to know what problem Bitcoin is or is not solving.
Decentralization of Currencies
The currency that you have in your leather wallet has been created and printed at the orders of your government. The central bank of your country has been a major player in the creation, printing, and distribution of these currency notes. Now, when you get your pay and deposit it in your account, your bank has all the data. Your bank is connected to the central bank, which is then connected to the government. In other words, you are a small part of a hierarchy that is not in your control. If your bank decides someday that it wants to wipe off all of its operations, what can you do?
What will you do in that situation? What if you notice a discrepancy in your account balance? Who will you go to? Of course, you will go to your bank? But, can the bank respond to you honestly if it’s the bank that’s holding your money? It can’t give evidence against itself. In other words, the bank is the judge, the jury, and the prosecutor in this particular case. With a decentralized currency like Bitcoin, no banks, governments or similar parties were involved in the creation or mining of the cryptocurrency. Also, the record of your transactions is maintained in the computer of every person connected to your cryptocurrency network. That’s what you call decentralization.
An All-digital Solution
The recent pandemic situation in the world has made more people realize the importance of going digital. There is this constant urge in people to keep trading in cash. However, with the current situation at hand, it is now time for people to realize that there is a better solution for them to exchange values, sell goods, purchase items, etc. The issue that people used to have with other types of money, such as plastic and internet-based was that they were just their physical currency converted into numbers. They were not getting anything different with those currencies. They still paid fees on transfers and commissions on deposits and withdrawals.
On the other hand, with digital currencies, they have truly realized a solution that is not just turning physical money into digital. Cryptocurrencies are truly digital as they are born in the digital world through the process of mining. Also, when you pay with digital coins, you don’t have to deal with the middleman. You can also maintain your anonymity to some extent when you become a part of the blockchain.
Now, when it comes to your consideration of investing your money in digital currencies, you know why they are there. If you talk about Bitcoin, it is truly an invention that has proved how even plastic money needed to be improved. At the end of the day, the reason people find utility and value in Bitcoin or any other digital currency is that these new currencies really do solve many problems that are inherent in our current financial system.