In the world of cryptocurrencies, Bitcoin is the first modern digital currency. It was invented in 2008 (following an economic/financial market crash), by an anonymous and mysterious programmer named Satoshi Nakamoto. (The first implementation was in 2009.) Satoshi planned to build an electronic payment system that is not dependent on government or financial institutions and is entirely decentralized. He focused on creating a decentralized network that is independent of central authority or servers.
In 2009, when Bitcoin was introduced, people didn’t understand its underlying technology (*id est* Blockchain). However, over time it gained huge popularity across the world and became the first modern cryptocurrency. Many developers tried creating cryptocurrencies but failed miserably. (Cough, cough, Justin Sun). Others (such as Vitalik Buterin) have created successful alternatives to Bitcoin.
Why Are Bitcoin and Other Cryptocurrencies so Popular?
Unlike traditional currencies, Bitcoin has *worth*, not *value*. It cannot be denied that its market is highly volatile and its value keeps on fluctuating a lot. (This is a side effect of so few people investing, HODLing and trading in it, compared to the fiat currency of a nation such as the USA. As more people take hold of it and learn to put their emotions aside, the market will stabilise somewhat — although there are no circuit breakers/controls like in a stock exchange). The main reason behind the skyrocketing value of Bitcoin (in fiat terms, not that one should pay much heed to that) is its pervasive usage across the world. Many businesses and individuals are using Bitcoin as a payment method instead of traditional currencies. (Here's hoping more come on board soon.) Most consumers are using Bitcoin (and other cryptocurrencies) because of the high convenience, ease of use and ultimate security that blockchain technology offers them.
Cryptocurrencies such as Bitcoin (Ethereum, Litecoin, Dash, etc.) are gaining huge popularity because a plethora of customers are accepting them as means of payment in their businesses. Through this, trading has become a lot easier and more accessible. People are choosing real estate companies, ISPs, (even coffee shops) and other businesses that accept crypto payments. From looking at the growth rate and utility of Bitcoin, one can predict that Bitcoin’s worth and relevance will rise with more retailers and businesses accepting it as a payment method.
Quick, Easy, and Cheap Transactions
Bitcoin (as with other cryptocurrencies) is not dependent on central authority and banks. This means there are no intermediaries to create bottlenecks, unnecessary charges and/or censorship. With no intermediaries being involved, there is only the network and/or miners' fee. This fee is usually dependent on how busy the network is. However, with many of the available wallets, you can set the fee yourself. Just keep in mind that the lower the fee, the longer it takes to get network confirmations (and there is a minimum viable fee). Traditionally, transferring funds through banks internationally has been a time-consuming and expensive process, since banks usually charge huge transaction fees from both the sender and receiver and take several days to complete the transaction. Consequentially, Bitcoin (and Ripple) is still more cost-effective when sending to another country (even with network/transaction fees).
Highly Volatile Markets
National governments, state actors and parastatal institutions do not control the Bitcoin market; the users control it. However, since there are so few users (distributed throughout the world), the Bitcoin market is highly volatile and it behaves according to demand and supply. A volatile market is not for the faint-hearted nor to be trifled with. If you don't know what you're doing/how to trade effectively, you can potentially lose all your investment. Proper knowledge of crypto investing and trading methods is vital if you wish to make exceptional long-term gains. It is vital to invest in a particular cryptocurrency at low prices and exchange them when the price rises. (Do not ever sell your crypto for fiat; that's a surefire way to lose.)
The reason for the volatile markets of cryptocurrencies is largely due to FUD about the various uncertainties related to the legitimacy of them. Despite volatile markets, Bitcoin, Ethereum and Dash have great impacts on businesses and are expected to become the most popular cryptocurrencies for dealing with them.
Less Risk of Fraud
Most investors are attracted to Bitcoin because it is completely digital and largely devoid of human factors/vulnerabilities. This factor is quite appealing to traders and investors. There are unlikely to be fraud issues because it has no physical appearance and is not controlled by a central authority or financial institution. (However, it is not completely impervious to the occassional hack, but it is mostly the exchanges that fall victim to them.) As with all online technologies and spaces, be aware of fake companies and scammers that are out to pull the rug from under you and make off with your crypto. Do your own research beforehand. At the very least, run a query on a company/organisation through before buying, selling or trading any cryptocurrencies.
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