The Real Reason People Buy Bitcoin
Regardless of Bitcoin’s well-known volatility, the digital currency continues to grow in popularity. Even the mainstream financial institutions are predicting a bright future for Bitcoin.
We can’t ignore the role social media and the promotion of celebrity crypto investors have played. These factors have made an impact on how people perceive Bitcoin and other cryptocurrencies.
But they’re just the latest entries on a long list of reasons why people buy Bitcoin. In this article, we’ll dig a little deeper and talk about what truly motivates people to consider Bitcoin investing.
How Did We Get Here?
Former Chief Economist of the World Bank and a Nobel Prize Laureate in Economics, Joseph Stiglitz, believes that Bitcoin should be banned. According to him, it’s the lack of oversight that makes Bitcoin successful, and it wouldn’t have any purpose without it.
Some believe that Bitcoin is only a trend and won’t live up to its current hype. But let’s look at the reality for a moment. Since it was created in 2009, Bitcoin has been on the rise.
Indeed, it’s a volatile and high-risk asset, but it has managed to capture the attention of over 100 million users around the world. That kind of growth represents something more than a momentary fad. So, how does Bitcoin serve the public exactly?
Protection Against Fraud
Bitcoin runs on a decentralised blockchain-based ledger system. This makes it virtually impossible to counterfeit. If someone intends to do so, they’d have to outwit every participant in the entire Bitcoin network, which is incredibly hard to do.
The only way someone could do that is to create a duplicate transaction record of the same Bitcoin. However, double-spending is highly unlikely given the size of the Bitcoin network.
The person committing the fraud would have to control 51% of computers connected to the system, which has never been done before.
On the other hand, counterfeit ability is a real problem with fiat currencies. People who have had bad experiences before might see Bitcoin as the solution.
Global Access
There’s something to be said about a currency that connects everyone in the world. While it’s not difficult to exchange Pound Sterling to the US dollar these days, you still have to pay the exchange fee.
It’s also not as convenient as using the same currency wherever you are. There are over 4.6 billion active internet users worldwide, but not all have access to traditional exchanges.
That’s why the cryptocurrency market can have an even more prominent role in the future. Having the ability to send and receive Bitcoin instantly from one corner of the world to the other is incredibly appealing to many.
Open-Source System
Anyone can see Bitcoin’s source code and study it. They can also audit it and offer ways to improve it. In fact, countless users improve it every day. The open-source nature of Bitcoin has a very positive effect on its users.
People collaborate without expecting anything in return. The consensus serves as a fundamental axis within the network, though. A change will only be implemented if the majority agrees to it.
You Are Your Own Bank
Every Bitcoin you have belongs 100% to you. Not that traditional money doesn’t, but unlike fiat currency, your coins will stay in your Bitcoin wallet no matter what.
No one can intervene to freeze your account or confiscate funds for whatever reason. You are in complete control of every coin, and you decide how to use them.
Psychology Plays a Role
As mentioned, social media has made cryptocurrencies even trendier. But some people also like the thrill of investing in a volatile digital currency.
Others are motivated by the prospects of new and perhaps life-changing technologies. When we read about people having fantastic success with Bitcoin, it makes us want to be a part of that.
Overall, while there are downsides to investing in Bitcoin, it’s clear that people are more focused on the upsides.
What Is Your Reason to Give Bitcoin a Try?
You don’t have to have a “right” reason to buy Bitcoin, or even to get a Bitcoin mining rig and start digging your coins.
Perhaps joining the Bitcoin bandwagon for popularity alone might not be the best reason. Fortunately, people have placed trust in Bitcoin based on fundamental factors such as decentralisation, global access, and protection against fraud.
Bitcoin has the potential to offer a transformative change in the future, and we’re likely to see many significant movements soon.
