In this changing world, where technology advancements are at their peak, people are now making technology as a base for their lifestyle. From ordering food online to booking a cab, completing a course online and working from home, technology has changed the way of living. This kind of advancement are also been seen in money transactions. For all these money transactionscryptocurrencies were introduced buy bitcoin with naira.
What is cryptocurrency?
Before proceeding to this topic, we should know what cryptocurrency is. Cryptocurrency is a virtual or digital currency which uses encryption technologies for transactions. The currency is stored in a digital wallet which is locked with help of a digital key. Payment from which done from person to person without third-party involvement through an encryption algorithm.
There are a number of currencies available in the market. Some of the trending currenciesare rupees, dollars, and euros. These are printed forms of currency that you can touch andkeep in your pocket but in a world where everything is shifting in the digital form. The mostacceptedcryptocurrencyisbitcoin.Itisdigitalmoneythatallowssecureandswiftpeer-to-peertransactions on the internet.
Initially, bitcoin was used to handle all the small-value transactions but as the competitivefactors visas and MasterCard came into the market the scaling issues made it limited tosmall-valuetransactions.
Bitcoin’s primary value is less as a payment network and more as digital gold and in recentyearsitwill replacegold andbecomea formof majorinvestment.
Reason for bitcoin’s massive success
In the market, there are over 4000 cryptocurrencies available in the market still bitcoin is ontop.Ifyouarewonderingwhythenyouarerightwebsitewewillexplorewhy
- Blockchain Technology: One of the powerful reasons is blockchain technology. Thedecentralized network mainly helps to build an environment that allows secure, fast,andtransparent data transactions.
- E-commerce websites: Bitcoin gained massive popularity because of its acceptancebythemajorityofwebsites.Theyalloweddigitalpaymentsthroughbitcoins
- Low Transaction Fees: Transaction fees using intermediary banks charge high feeswhereasusing bitcoin isvery less when we sell bitcoin.
- Security: In bitcoin, no one can ever steal your money whereas in oyster cases yourmoney can be stolen. This is because bitcoin uses blockchain technology for securitypurposes.
Is bitcoin an investable asset?
Bitcoin is the most popular cryptocurrency and in the coming years, it will be the mostwidely used for digital payments. No doubt it will be also used for investment and replacebuyinggold as an asset.