Last a few hours ago, The price of Bitcoin skyrocketed to $8,000, and it's currently going sideways, which is great.
Of course, this also can be a bull trap as before. We'll see.
In this post, I would like to explain about key things about Bitcoin for people who just start to have an interest in Bitcoin and cryptocurrency. I know most steemians have well understanding in Bitcoin or even in Altcoins, but there are still many people who don't know well about Bitcoin. Well, let's start!
Bitcoin
Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator.
In shorts, Bitcoin is very similar to video game money to buy items, but it can be used in whole around the world in real life. Adaption is still in progress around the world very quickly than what we can imagine. The stores and restaurants begins to accept Bitcoin and the other cryptocurrency as a payment. Also, the government are working to set a law to protect investors in cryptocurrency.
You might come up with a question, “why is Bitcoin’s value so volatile even if it is called crypto-currency?”One of the most persuasive reason is that there is too much variance in perceptions of Bitcoin’s store of value and method of value. Currently, while some people are saying Bitcoin will moon to $100,000, others are saying that Bitcoin bubble just burst. Who knows the future. But, the government and big institutions definitely cannot ignore Bitcoin and blockchain technology anymore.
I believe this is why people invest in Bitcoin right now because they see this potential in near or far future.
Furthermore, the greatest thing about Bitcoin is decentralized.
In fact, most countries around the world have corrupted government and banks. If they change the laws for themselves or bankrupt, their currency will have zero value. On the other hand, since there is no centralized power in Bitcoin, the value of Bitcoin will not go to zero unless World War III occurs.
Yes, It is a new type of gold
The other question can be, “Why Bitcoin is not popular in the early stage of Bitcoin?”
The reason is very simple. At the time, most people must not have heard about Bitcoin, and they didn’t even know Bitcoin exists. Even though they knew Bitcoin, they thought using Bitcoin is used in the dark market. It was very natural that big institutions and investors are not looking into Bitcoin because it doesn’t look good.
However, 10 years after Bitcoin was created, there are lots of blockchain developers and marketing teams trying to change the world. People start to have positive perspectives on Bitcoin and blockchain technology. Technology and fundamental side actually progress a lot compared to before. It is inevitable that cryptocurrency market cap gets large.
Additionally, newbies should know that Bitcoin is not all about cryptocurrency. There are currently over 1,600 different coins out there with different purposes, and Bitcoin is just the biggest and the most well-known cryptocurrency so far.
Hope this post helps you to understand what Bitcoin is, and I will post more about bitcoin deeply later. Thank you.