Bitcoin is a decentralized digital currency. It’s the first to truly take hold as a global alternative to cash, at our fingertips everywhere at bitcode method. Here are ten reasons why bitcoin has value and what affects its price:
- Security – Bitcoin can’t be hacked because any company or government agency does not own it, and there are an extremely limited number of copies out there.
- Convenience – If you’re like me, you pay with a card, not cash. And unlike cash, your card works almost everywhere. This is due to a network called Visa which lets users use credit cards for purchases. But there is one problem.
- Identity – Bitcoin is anonymous, and transactions are considered illegal by many local governments because it allows users to buy things anonymously without IDs. IDs are needed for taxes and general regulations of the country (in some countries).
- Rapid Value Increases – Bitcoin was worth $0 in February 2009 when the cryptocurrency launched. Now, the digital currency has a total market cap of USD 6,430,621,977.07 with a circulation of 16,359,388 BTC as of March 2017. This is an increase of 453 times its value in just eight years!
- Human Innovation – Bitcoin exists thanks to many people worldwide who contribute to the code and help make it better. If you don’t believe me, go to GitHub and look at the number of contributors to Bitcoin Core.
- Alternative – Bitcoin doesn’t compete with Visa or any other transaction-paid processor because it serves as a digital currency and payment processor. It doesn’t compete with governments or banks.
- Decrease in Cost – Bitcoin has declined since 2009, when you could buy 1 BTC for just under $1. In 2010, that same 1 BTC would have been worth USD 0.002. Today, 1 BTC is worth USD 670 if Bitcoin ever becomes widely accepted.
- Technological Innovation – Before Bitcoin came along, there were no digital currencies. Instead, we had a cash economy where everyone used paper money, and banks controlled the trust system that kept everyone honest.
- Pseudonymous – Bitcoin allows you to send and receive money anonymously, which makes it a favorite among people who do not want their information tracked.
- Speculation – If Bitcoin continues to succeed, the price will continue to rise as the market is constantly flooded with new buyers hoping to make a financial profit. This gives Bitcoin a lot of market value due to its lack of regulation by governments worldwide and the fact that you can’t buy stocks or bonds with it or hold it in an account like any other currency.
As you can see, there are many reasons why bitcoin has value and what affects its price today and in the future. Considering how much the price can go up in bitcode method, you have to wonder if this is a good investment (because buying bitcoin at a low price of USD 670 today could be worth thousands later on).