Bitcoin was created in 2009 and since then it has been growing rapidly. Although the maximum number of bitcoins that can be created is fixed, the popularity of bitcoin is unlimited and spread all over the world. Bitcoin has not only established itself in the economic market, but has also become a part of many people’s lives as an online payment system. If you are interested in Bitcoin trading, you might consider joining a reputable community like bitqh.net.

Bitcoin’s name is Satoshi Nakamoto. But, no one can say if it is a person or a group because he has decided to remain anonymous. Thus, all communication at the time of the introduction of bitcoin was done by cryptographic mail.

The goal of bitcoin was to create a decentralized payment system. A system that works without any interference from third parties. Even the banks and the government cannot regulate it. They can’t even issue bitcoin, unlike fiat currency. Thus, the control of bitcoin rests entirely with the people who hold it.

The Bitcoin network operates on the basis of Blockchain technology. Technology facilitates the distributed ledger system. This means that bitcoin’s transactional data remains recorded in the blocks or online ledger and is evenly distributed among users. Users are interconnected, so peer-to-peer transactions take place here. The entire system is protected by cryptographic encryption. This is where the name cryptocurrency comes from.

There are many reasons that can be attributed to bitcoin’s growth, but we can narrow it down to a few.

  1. First-mover advantage

One of the main reasons we saw an increase in bitcoin’s popularity was the first mover advantage. Before the launch of bitcoin, a decentralized currency only existed as a fictional character. It was not updated and therefore few people knew about it. However, the creator of bitcoin was able to actualize the theory of a decentralized currency, which led to the launch of bitcoin to the public. While the launch of bitcoin spawned many other altcoins, it has remained the most popular cryptocurrency. It is easy to understand why. Ever since bitcoin was used as an example to understand blockchain technology, it was gaining popularity. People have started thinking of cryptocurrencies as synonymous with bitcoins.

  1. blockchain technology

No one had ever thought of such complex technology for a monetary system. This went against all existing rules of the financial markets and caused a hype in the world of finance. Blockchain technology was unlike any other and garnered a lot of attention. Since this technology was the basis of bitcoin, it seems only fitting that bitcoin is gaining popularity due to the superiority of blockchain technology. It provides transparency and security in all kinds of transactions due to its irreversibility. It also enables end-to-end transactions in the fastest manner and with a negligible amount of fees. Third-party users cannot manipulate the registry. Therefore, this technology has been the focus of bitcoins, which is one of the reasons it has garnered so much public attention.

  1. Forces of demand and supply

Another major reason why bitcoin has risen through the ranks is demand and supply. Since bitcoin, unlike fiat currencies and other cryptocurrencies, has a limited supply of only 21 million, it has a very high demand. Because already nearly 19 million bitcoins are there, there are still a few. People want to accumulate as many bitcoins as possible before they are completely mined. Once all bitcoins are mined, it is said that their value is likely to increase even more and create a huge gap between supply and demand. Especially since many countries are now adopting bitcoin as a legal form of currency. Once this adaptation reaches its peak, it will create a huge gap and bitcoin prices will likely rise to unimaginable levels. Therefore, the forces of demand and supply play a major role in the growth of bitcoins.

Conclusion:

Therefore, as you can see, these are some of the common reasons why we are seeing an increase in the popularity of bitcoins. Another reason bitcoin has grown in popularity is because of exchanges. These exchanges have created a lot of traffic and awareness regarding cryptocurrencies and bitcoin has always been at the forefront. Therefore, if you think you are late to invest in bitcoins, you are wrong. It is still a viable investment option and new investors are joining the crypto market daily to benefit from cryptocurrencies.