What is Bitcoin and why is cryptocurrency so popular?

Bitcoin has been a buzz word in the financial space. In fact, Bitcoin has exploded onto the scene in the past few years and many people and many large companies are now jumping on the Bitcoin or cryptocurrency bandwagon.

People who are brand new to the cryptocurrency space constantly ask this question; “What is Bitcoin Really?”

For starters, bitcoin is essentially a digital currency outside of any federal government control, it’s used all over the world and can be used to buy things like your food, drinks, real estate, cars, and other things.

Why is Bitcoin so important?

Bitcoin is not sensitive to things like government control and exchange rate fluctuations of foreign currencies. Bitcoin is backed by the complete trust of an individual (you) and it is strictly peer-to-peer.

This means that when everyone completes transactions with Bitcoin, the first thing they realize is that using it is cheaper than trying to send money from bank to bank or using any other services that require sending and receiving money internationally.

For example, if I want to send money to China or Japan, I have to get a commission from a bank, and it will take hours or even days for that money to get there.

If I use Bitcoin, I can easily do it instantly from my wallet, mobile phone or computer without any of the fees. For example, if I want to send gold and silver, it would require a lot of guards, it would take a lot of time and a lot of money to transport the bullion from point to point. Bitcoin can do it again with the touch of a finger.

Why do people want to use Bitcoin?

The main reason is that Bitcoin responds to these unstable governments and situations where money is not as valuable as it used to be. The money we have now; the paper fiat currency in our wallet is worthless and will become even cheaper in a year.

Even big companies are showing interest in blockchain technology. A few weeks ago, several Amazon customers were asked 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 applied for a patent for a “smart package” that would use blockchain technology to track and authenticate packages.

Throughout our lives, we’ve seen many changes from how we shop, watch movies, listen to music, read books, buy cars, look for homes, and now how we spend money and bank. Cryptocurrency is here to stay. If you haven’t already, it’s time for everyone to fully learn about cryptocurrency and learn to take full advantage of this trend that will continue to evolve over time.