Why is Bitcoin a Successful Cryptocurrency?
After Bitcoin was released, other cryptocurrencies were launched on the market. Today there are over 4,000 cryptocurrencies. Still, even today, Bitcoin is considered one of the most successful cryptocurrencies that were ever invented due to its huge market cap that is estimated at over $1 trillion and the number of users. There are actually over 40 million Bitcoin users. If you’re wondering why Bitcoin is so successful, we will explore the main factors that triggered the growth of this cryptocurrency.
The Decentralized Blockchain Technology
One of the reasons it remains successful is the blockchain technology. The blockchain network was essentially built to create an environment that allows BTC transactions to be facilitated between users on the network without the interference of a third party.
Hence, this is a fully decentralized system which means some attributes like the transparency of the data, the anonymity of the users, and fast BTC transactions are only contributing to the popularity of the technology and currency. Moreover, Satoshi Nakamoto which is the founder of Bitcoin, chose to remain anonymous, and he disappeared after the blockchain network attracted a significant number of users in 2011.
Otherwise, the decisions are made in a competently democratic process, which means only the miners who are responsible for the validation of BTC transactions get to vote on proposals in the network. No one else has the power to alter the data in the network and affect the supply of BTC.
Online Trading Sites
Another reason why Bitcoin is very popular is online exchange sites. Because Bitcoin is the first cryptocurrency that has been launched, it is accepted on a majority of trading sites. In comparison, new cryptocurrencies that are launched today still need to earn their place in the market, and you probably will have fewer choices when it comes to picking a trading site to invest in new crypto. One great example is bitqh.
On the platform, you can earn up to $1215 when you make a deposit of at least $250 on a daily basis. The main advantage of this platform is that it is powered by AI technology which has a win rate of 90% on the right market conditions. Plus, because this is an automated trading site, the technical aspects of trading are conducted by the software; hence there is not required for you to have a background in online trading or Bitcoin. After you make your deposit on the site, you can start trading right away.
Satoshi Nakamoto made sure the blockchain system is able to operate without any assistance. And for that purpose, he programmed the Bitcoin halving. This event splits in half the reward from the miners, which impacts not only the expenses related to mining but also the supply of Bitcoin. Because this is a fully decentralized digital currency, the supply of Bitcoin is affected previously by the restrictions that Satoshi made. More specifically, Nakamoto caped the number of BTC that can ever come to existence at 21 million.
Moreover, the Bitcoin halving slows down the rate at which new BTC are released in the market. Hence their demand is growing at a much faster rate than the supply, which means that the price is growing exponentially.
Another reason why Bitcoin halving is successful in regulating the supply of BTC is that the blockchain network was also programmed to increase the level of difficulty of the mining as the number of Bitcoin users on the network grows. This means that when the collective computing power on the blockchain system increases so does the difficulty of mining. That being said, the blockchain network operates perfectly well, and it is a very secure technology that is also implemented in other sectors of society such as healthcare, public sector, retail, gaming, and many other fields.