Why are bitcoins so valuable?

The price of a single Bitcoin has skyrocketed since the cryptocurrency was first introduced in 2008 – with major ups and downs along the way. However, Bitcoin continues to attract investor interest due to its long track record of building and preserving value.

What is Bitcoin?

Bitcoin, often described as a cryptocurrency, a virtual currency or a digital currency – is a type of money that is completely virtual. It’s like an online version of cash. You can use it to buy products and services, but not many stores accept Bitcoin yet and some countries have banned it altogether. However, some companies are starting to capitalize on its growing influence. Each Bitcoin is basically a computer file that is stored in a ‘digital wallet’ app on a smartphone or computer. People can send Bitcoins (or part of it) to your digital wallet and you can send Bitcoins to other people. This makes it possible to trace the history of Bitcoins to prevent people from spending coins they do not own, making copies or undoing transactions.

4 reasons for bitcoin’s current success

  • Bitcoin was the first cryptocurrency
  • It is a worldwide currency, nowadays you can pay with cryptocurrency at companies such as Paypal, among others
  • The supply of bitcoin is limited, when the demand is high, the price rises.
  • New opportunities, Bitcoin and cryptocurrency trading is relatively young – new coins are becoming mainstream daily. This novelty brings unpredictable swings in price and volatility, which can create opportunities for huge profits.

What makes Bitcoin different?

The main advantages of Bitcoin are network effect and proven security. Both are almost insurmountable advantages, Bitcoin has a proven use case as a store of value. Bitcoin also has a big edge as a store of value over any other cryptocurrency as it has existed for 8 years without fail. Bitcoin’s security is much more proven than its much younger counterparts, with usage by almost every metric exceeding that of altcoins.
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Furthermore, Bitcoin is more accessible, with more exchanges, more merchants, more software, and more hardware supporting it.

Invest as soon as possible

Over the past ten years, the price of Bitcoin has risen by more than six million (!) percent. This means that ten years ago you had to invest 16 euros to be a millionaire today. But even now it pays to invest in cryptocurrencies. The price of, for example, bitcoin has generally only increased. Please note: only invest in cryptocurrencies if you can actually miss the money. Prices for Bitcoin change quickly so you want to invest now before it gets even more expensive. So you want to buy bitcoin as soon as possible.

The Future of Cryptocurrency

We can speculate on what value cryptocurrency could have for investors in the coming months and years (and many will), but the reality is that it is still a new and speculative investment, without much history to base any predictions on. Whatever a particular expert thinks or says, no one really knows.

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