Satoshi Nakamoto, a mysterious entity, created Bitcoin in 2009, meaning it has been around for more than thirteen years. During the thirteen years, this electronic currency has existed, it has had its share of success and unsuccessful stories. Satoshi created this digital money as an alternative to fiat currency. However, it became more than a currency. Bitcoin has gained worldwide adoption at a high and unexpected rate. In addition, countries like El Salvador and the Central African Republic have already legalized this digital money. If you are a newbie in the trading world, you can improve your trading skills at Bitcoin Buyer
After the president of El Salvador legalized Bitcoin operations in their country, its economy improved since it increased financial inclusion. Here are the main reasons behind the success of this electronic currency.
Blockchain Technology
Bitcoin has an underlying technology known as the blockchain, one of the main reasons behind its success. Blockchain technology facilitates transactions between Bitcoin users without the interference of third parties. Additionally, the blockchain ensures that transactions are transparent since it is a distributed ledger. Other than transparency, blockchain also enhances anonymity. One cannot trace back Bitcoins to the one who sent them since the blockchain does not reveal the public’s addresses. In addition, the Bitcoin creator, Satoshi Nakamoto, chose to remain anonymous, whereby he disappeared after the cryptocurrency attracted a significant number of users.
Blockchain technology has also enhanced fast and real-time transactions, contributing to Bitcoin’s success. This digital currency is also decentralized, meaning no bank or government can regulate its operations. However, only the people responsible for validating Bitcoin transactions get to vote in favor or against proposals on the network.
Bitcoin Exchange Platforms
Another factor contributing to this digital money’s success is the availability of exchange platforms to facilitate transactions. This digital currency was the first successful cryptocurrency. Therefore, it’s not surprising that most trading platforms and sites accept it.
There are a lot of exchanges that have emerged since Bitcoin’s introduction, with some being genuine ones and others not genuine. However, one must conduct some thorough research to find a reliable and reputable crypto exchange. Check out the transaction fees requirements, security measures, and ease of using an exchange before investing your hard-earned money. Do not invest in a crypto exchange just blindly. In the end, the availability of trading sites has also contributed to the success of this digital currency.
Decentralization
Bitcoin is a completely decentralized currency that is quite different from fiat cash. No legal entity or central bank regulates the daily operations of this digital money. However, only Bitcoin users create measures on how people will use this digital money. As a result, investors are subject to their security. Additionally, since the price of this electronic currency isn’t subject to government policies, it cannot fluctuate based on national crises.
The Lightning Network
Among the most significant features of this digital money is that it utilizes the lightning network. However, the effectiveness and importance of the lightning network became more visible when El Salvador started applying it in its Strike app.
As a result, the lightning network is a perfect solution for making Bitcoin’s blockchain more scalable and fast. Therefore, the adoption of the lightning network is a contributing reason to the success of this digital money.
The Bottom Line
Bitcoin has proved to be a successful currency despite being around for a short period which is thirteen years. This article shows that decentralization and blockchain are the main factors behind Bitcoin’s success.
