When it comes to the “virtual money” that is found on the internet, there are few things more ubiquitous than Bitcoin. Over the last eight years, Bitcoin’s popularity has been meteoric and while there are plenty of cryptocurrencies on the internet, there is only one Bitcoin. Whether looking to use bitcoin for your day to day purchases or to use it as a vehicle for your investments, there are plenty of reasons that bitcoin is beloved by cryptocurrency traders.
There are plenty of ways to get involved with trading bitcoin. Using a trading robot such as The Bitcoin Trader is one of the quickest ways as it allows you to experience the fun that comes with trading and using bitcoin. There are plenty of great ways to enjoy your time with bitcoin. Some people enjoy making money trading in bitcoin while others like to amass a large amount so they can have a great investment vehicle. However, there are some interesting things that go along with bitcoin besides it being an interesting way to make and spend some money. When it comes to learning about bitcoin, the following facts about it will make you see how versatile this cryptocurrency is.
Unlike Fiat Currency, Bitcoin has a Finite Supply
The economic rules of supply and demand apply especially to bitcoin. This is because there will only be 21 million bitcoins. The good news here is that only 16.3 million have been mined and are being traded. This means there are opportunities to mine new bitcoin but the reality is mining bitcoin might not be the best idea because the more bitcoin comes into the market the less valuable it becomes. As for the finite nature of bitcoin, the very last one will be mined in 2140. So, basically, this means that there will be a steady supply coming on the market for the next 120 years. As the cryptocurrency gains wider acceptance, this means the price will go up simply due to the supply, making bitcoin a sound investment for people who are looking to the cryptocurrency as a way to secure their lives.
With fiat currency like the dollar, there is nothing that really keeps it valuable except perception. With bitcoin, the laws of supply and demand keep it always valuable.
Bitcoin is Very Useful for Purchasing Products
There are a lot of people out there who are skeptical about the things that you can buy with bitcoin, but the reality is these people do not always know how versatile bitcoin is. Using bitcoin to make purchases is easy. From the first bitcoin purchase of a pizza to today, there is a myriad of things that can be purchased with bitcoin. Here are some examples of things to purchase using bitcoin:
- Getting a drink at Starbucks
- End of life services like funerals
- Virgin Galactic accepts the cryptocurrency for space travel
- There are several food vendors who accept bitcoin as a currency
- Purse.io is an e-commerce site proudly accepting bitcoin
- Use bitcoin with BTC to book a flight
- Purchase a Tesla car with bitcoin
The bottom line is that using bitcoin to make purchases gets easier as the years go on. Because bitcoin’s value keeps increasing, it makes complete sense that more companies will come online and accept bitcoin as payment – especially if those companies are interested in marketing to a younger clientele.
Despite Threats to the Contrary, There Will Be No Bitcoin Bans
The reality is that bitcoin is not the most favored currency for governments because it can wreak havoc upon the banking systems that are in place due to working outside the jurisdiction of the traditional banks. This is an advantage and a disadvantage; the bottom line is if bitcoin is to be more traditional, it loses its value, but if it stays a renegade currency, there are more advantages for the individual bitcoin enthusiasts.
That being said – bitcoin can’t be banned because all you need to enjoy it are an internet connection and a bitcoin wallet. Though many countries like Thailand, Vietnam, Bolivia, and Bangladesh tried to ban it, this has only helped the currency’s value rise. Other countries like Australia and Japan have made bitcoin into legal tender. This allows them to regulate it, which is also good for bitcoin as well. At the same time, when you have a country like the United States is unclear about the bitcoin, it makes it a bit difficult to project the future value.
The Anonymity of Senders and Receivers
The great thing about bitcoin is that you do not need to know who is sending you the bitcoin and who is receiving it. The reason for this is bitcoin has a 34-number string that masks the identity of the person sending and receiving bitcoin. Unfortunately, there are many illegal transactions done with bitcoin. The good news for others is that anonymity is something valued when doing anything online. The reality is having your identity be revealed when you are online and interacting with people from around the world can be very dodgy. Therefore, bitcoin’s ability to protect your anonymity is something that makes the cryptocurrency have value besides the actual value of being legal tender for purchasing different products and services.
High Level of Volatility
The bad news is that about 10 different people control most of the bitcoin that is available in the world, so trading is dependent on these people being willing to buy and sell bitcoin. Where there is volatility, there is an opportunity – especially if you are willing to hold on to your bitcoin for a while. The volatility is something of a drawback for some, but if you are eager to buy during a low cycle you can make a lot of money when you sell on a high cycle. As you get more into bitcoin trading, you will see how exactly how the cycles work, and this will help you time out the market so that you can buy and sell with great efficacy.