Crypto

Bitcoin: All the Buzz and Nonsense Explained

The world is finally recognizing the potential that cryptocurrency has. With cryptocurrencies being valued in lakhs, the market has taken a stronghold and although it is volatile, the upward swing has continued the past year. The most popular cryptocurrency, Bitcoin has become a household name and every investor wants to get on the Bitcoin bandwagon. If you are looking to buy Bitcoin in India, the easiest way is to log onto the CoinSwitch exchange platform or download the app. Once your account is open and KYC is done, you can start trading immediately.

Although Bitcoin has created some waves, there are a lot of people who have invested in it because of its popularity and because it is currently trending. Before investing, it is recommended that you look at all aspects of Bitcoin and then start. It is also wise to weed out the rumors and look to trusted sites and networks that can provide proper information. Let us take a look at why Bitcoin is the center of the crypto world.

What makes crypto a superstar?

  • Bitcoin gained momentum in 2011 and is the most popular as well as the most expensive cryptocurrency around the world. 
  • Blockchain technology was made to simplify BTC transactions between 2 users without the use of a third party. That is why this technology guarantees important factors like transparency, the anonymity of users, and quick transactions. 
  • The maximum supply of bitcoin is 21 million and no one can change that. It cannot be recreated and even the creator cannot change that fact unless there is a major change in the code. 
  • People who invested in Bitcoin were rewarded handsomely in the year 2020. The price almost increased fourfold and the returns were more than what you would have gotten if you would have invested in gold. 
  • The value of 1 Bitcoin in INR climbed to almost 50 lakh rupees in the year 2021. 
  • Bitcoin is already popular as a currency. It is being used to make payments in some businesses in India as well. 
  • The use of blockchain technology allows transactions without a third party being involved in the transactions. Bitcoin also charged lower transaction fees as compared to the existing option and the process was much faster. This is especially useful in cross-border payments.
  • Bitcoin is not dependent on any institution to facilitate the transactions. That is why it is completely trustworthy. 

These are some of the reasons why there is so much buzz around Bitcoin. However, there are a lot of unsupported facts circulating around the internet. Let’s bust some myths! 

Myths about Bitcoin

  1. Bitcoin is a scheme – Bitcoin is a legitimate cryptocurrency that is unregulated in India. Bubbles are economic cycles characterized by unsustainable rises in the market. This is neither a bubble nor a scheme. It is a digital currency developed on the technology that is called the blockchain. There are legitimate exchange platforms like CoinSwitch that trade in this and facilitate the purchase and sale. 
  2. Bitcoin has no real-world applications – Sharing of medical data, NFT marketplaces, cryptocurrency exchange, real estate processing platform, supply, and logistics monitoring, cross-border payments, are just some of the applications of Bitcoin. All of these are not currently in use however, Bitcoin has the potential to make all of these happen. 
  3. Bitcoin does not have any value – Bitcoin is not a tangible asset. It is not like gold or any other currency. However, Bitcoin does have value. It is a digital asset and is resistant to inflation too. There is a limited supply of Bitcoin and every four years, Bitcoin sees halving. The path of Bitcoin’s value is predictable. 
  4. Investing in Bitcoin is about luck – The crypto market is in its beginning phases, and the volatility has been a by-product of the same. Although there have been ups and downs, Bitcoin has shown growth every year. Investors who believed in Bitcoin have been rewarded handsomely so far. 
  5. The Bitcoin network lacks security – Bitcoin network has never been hacked. The open-source code has been checked by countless experts. All Bitcoin transactions are irreversible and you cannot double-spend this currency. 
  6. Bitcoin is going to get replaced by a competitor – Who can say with certainty what the future holds? There are thousands of alternative currencies that have been launched since Bitcoin and they have their own communities. However, so far, no cryptocurrency has come close to replacing Bitcoin in the global crypto market. There are digital currencies that have more advantages and yet Bitcoin remains in the lead. 

Bitcoin has caused governments to develop laws and get in sync with where the world is headed. Like cryptocurrency, Bitcoin is very much a part of the future. It has already paved the way for digital assets, marketplaces, real estate, and much more. The role of Bitcoin in the future of the global economy remains to be seen. 

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