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Only those who have been living under a rock will not have heard of Bitcoin before. At the moment, it is one of the most invested-in things in the world and currently boasts a staggering price of £43,654. Many people will find it difficult to get through one day without hearing of Bitcoin as it seems to be the first word on many people’s lips. However, there will still be some who have no idea what Bitcoin is or why it is so popular. Furthermore, the way in which it works might offer even more confusion to some people given that it is a relatively new technology. Fortunately, these people can be armed with the right information so they can bet navigate the Bitcoin phenomenon.
Bitcoin is digital money – a cryptocurrency that allows people to use it in the same way that we use cash, but it can also do far more. It is because of these additional applications that people are so excited about it. Bitcoin was created after the financial crisis of 2008, which many may remember led to many recessions across the world. A group or an individual known as Satoshi Nakamoto created Bitcoin as a response to this event and wanted it to be a system where payments could be made that were transparent and censorship resistant. This is exactly what Bitcoin ended up being, but no one could predict exactly how much the cryptocurrency would rise in future years.
Most people will be aware of how shares work already – the value of the stock goes up the more people buy it as there is greater demand for it. In the same way, as people steadily began to realise the value that Bitcoin had, the price of it went up slowly at first and then exploded. It is this progress that allowed Bitcoin to reach the price that it has now, as this is what most people value the stock at.
People should now have a better idea about what Bitcoin is, but they still may have no idea what they can use it for, other than using it for purchasing things. Other than being an investment, Bitcoin has several other applications that will apply to most people. For example, the gambling industry has adopted Bitcoin as a valid means of payment, and people can even visit a crypto casino that allows players to use Bitcoin to play with. The advantage of this is that it increases the speed of withdrawals and offers both parties more protection.
Despite the allure of Bitcoin, it is a fact that very few people use it daily to buy things. Instead, traditional currencies are still used, and this may be because many people still do not feel comfortable with such as new technology competitively replacing what they normally use to pay with. For others though, Bitcoin represents security and a way of buying that cannot be monitored by any other third party, be it a bank or government. Although Bitcoin promises much, people will have to wait and see whether its value goes even higher or sinks to zero.
