Bitcoin is a cryptocurrency that has been around for some time now. Although there are thousands of other digital currencies that you can choose from, this one remains the most popular and also the most expensive one.
Speaking of expensive things, have you ever wondered why Bitcoin and any other crypto have value? In this article, we will try to show you some of the reasons why this is the case and how this value is determined.
There is a limited number of Bitcoins in the market
Bitcoin was first launched back in 2009, and according to the protocols, we will have access to 21 million Bitcoins in total. In other words, this is one of the few financial instruments that we know how much we will get from. That’s one of the reasons why Sportsbet accepts Bitcoin as a payment method and why you may be able to use your cryptocurrency in many online shops. These places believe that Bitcoin’s value will go up.
It will be really interesting to see what will happen once all 21 million Bitcoins become available. Some people think that this digital currency might become the “future gold” due to its scarcity.
You don’t need to get a full Bitcoin
One of the advantages of most cryptocurrencies (especially Bitcoin) is the fact that you can purchase a fraction of it, and it will still have some value. In other words, even people who can’t afford to spend a lot of money on these types of currencies can take advantage of them. This makes Bitcoin very attractive.
You can transfer cryptocurrencies within minutes
Nowadays, there are loads of wallets and special cryptocurrency exchanges where people can transfer Bitcoin and most other digital currencies fast and easily. The fact that you don’t need to carry any physical representation of these things makes them a lot more appealing.
However, you should be careful when choosing a wallet or a cryptocurrency exchange because you may have to pay hefty fees.
Another thing that gives Bitcoin and most other cryptocurrencies value is the blockchain technology on which they are based. As some of you may know, this is a decentralized system that is going to be even more popular in the future
People who take part in it don’t have to trust each other in order for it to work, which definitely has a positive impact on Bitcoin’s value.
You don’t need to worry about durability
The last thing that we have to point out in this article is durability. At first, this might seem strange, but fiat currencies in their physical form can be burned, torn into pieces, squashed, and so on. All of these things will make it unusable.
Luckily, you don’t need to worry about that if you decide to use a cryptocurrency. Due to the fact they do not have any physical form, they can’t be destroyed in the same way as fiat currencies.
Read more: How are Bitcoins defined?
Read more: Bitcoin price prediction: everything investors need to know
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