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Why are so many people interested in Bitcoin (Why is Bitcoin so popular?)

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Why are so many people interested in Bitcoin? Why are so many people buying Bitc

Why are so many people interested in Bitcoin (Why is Bitcoin so popular?)

Why are so many people interested in Bitcoin? Why are so many people buying Bitcoin? Many people believe that Bitcoin is the future currency. They see Bitcoin as digital gold, hence their choice of investing in Bitcoin. However, Bitcoin is not as mainstream as it seems, and there are many concerns to consider, such as whether you should buy Bitcoin and if people will invest in these assets. Why is Bitcoin so popular now?

1. Why are there so many individual investors entering this field?2. Why does the price of Bitcoin fluctuate so much?3. Why does Bitcoin’s price fluctuate so violently?4. Why is there no bottom to Bitcoin’s price?5. Why do most people have a negative view on Bitcoin? Why do many Bitcoin holders want to sell their coins, but hesitate to do so when the market is falling, resulting in a lot of selling behavior? In this situation, we see the phenomenon of institutions entering the crypto industry to long and trade. However, this situation does not always turn out as well as expected.

In reality, despite the rising price of Bitcoin, it still has some issues. For example, there are still many users who cannot use its applications properly on the Bitcoin network, so they have to take great risks to survive or even worse. If Bitcoin is considered a store of value or a speculative tool, why does such a situation occur?

Firstly, Bitcoin, as a highly decentralized financial tool and a means of payment with unlimited liability, the issuers are often unwilling to sell their own tokens for profit. Secondly, since the birth of Bitcoin over 40 years ago, it has always been one of the safest havens and becomes increasingly difficult to recover over time. Many early adopters gradually leave this ecosystem and withdraw. However, even today, some people are still enthusiastic about buying Bitcoin instead of other alternatives.

The third reason is that people have a good understanding of how to invest in Bitcoin, especially in comparison to traditional stock markets. Over the past year or so, various investment products have shown significant growth, including companies like Tesla investing a portion of their income into crypto projects. MicroStrategy’s CEO, Michael Saylor, once stated, “Bitcoin is not security.” Furthermore, Gary Gensler, the chairman of the SEC, has recently expressed the importance of viewing Bitcoin as a commodity. Additionally, Democratic Representative Cynthia Lummis from Massachusetts has proposed, “If the regulatory environment worsens and lacks clear regulations, it may make the US government nervous.” She pointed out, “I do think that Bitcoin could be classified as a security. In fact, I wouldn’t even forecast the stock market like some analysts do.”

Why is Bitcoin so popular?

Editor’s Note: This article is from CyBTC (ID: cybtc_com) and is authorized to be reprinted by Odaily Star Daily.

Since November 1, 2017, the price of Bitcoin has been hovering around $10,000. However, starting from early June this year, it suddenly surged to over $13,000 in a day. According to Bloomberg, as of August 10, 2020, the price of Bitcoin has reached $14,500, while the price of gold during the same period was $13,400.

Why is it so popular? It is due to several reasons: 1. Bitcoin is widely used as a store of value.2. It is a peer-to-peer network with unlimited scalability and highly dependent on third parties to store data and process transactions.3. The cryptocurrency market is currently in a highly unstable state, and many attribute it to speculative behavior in the digital asset field. However, as people gradually accept its increasing range of uses and adoption continues to change, this phenomenon will change. So what is Bitcoin (BTC)? Simply put, it is “cash.” Because money is sent through electronic devices, it can be used for transfers like bank deposits. “Cash” refers to a form of legal currency issued by the government or other organizations. When people purchase goods, they receive something called “gold and silver” or another form called “fiat currency,” which is often considered equivalent to paper documents. (Note: To avoid misleading and fraudulent statements, some companies have developed smart contracts and hope to introduce them into the real world, such as payment cards in online stores.)

Although Bitcoin is not as easy to acquire and transfer, it provides various options for investment, lending, storage, insurance, payment… Once you want to convert your Bitcoin into fiat currency or Bitcoin-supported hard currency, you can use it to purchase goods. If you want to provide liquidity to the world in the form of Bitcoin, you need an exchange account to safeguard your private keys. Of course, some people may ask, “How many people are still waiting?” In fact, many people are paying attention to some fundamental factors behind Bitcoin, such as:1. Bitcoin’s supply is limited, with only 21 million coins.2. Mining is low-cost, low-energy consumption, and low-cost returns.3. Bitcoin’s total supply is fixed and secure, halving every four years.4. Network computing power has greatly increased.5. It has a high degree of decentralization. The most important point is that the transaction fees on the Bitcoin network are unbelievably cheap.Therefore, whether you are investing or speculating, it is the right approach. We should all understand the significance of Bitcoin, which is one of the reasons why many institutions and individual investors are willing to invest more funds in Bitcoin. They believe that Bitcoin has the potential to solve the problems faced by the existing financial system, such as its store of value or a speculative tool. Ultimately, the keywords generated based on this content are: Bitcoin, popular, investment.

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