What is the Importance of Bitcoin?

Bitcoin has been one of the most talked about investments over the past couple of years. It’s made a lot of people rich but it also made quite a few people poor. The reason is that they’re uneducated about the investment that they’ve made.

What Is Bitcoin & What Makes It So Powerful?

• Bitcoin is the biggest form of the cryptocurrency. It’s the most well-known one & it’s the one that’s been the most adopted.
• Before you understand what cryptocurrency is you should understand what money is. Money is just an agreed-upon store of value accepted by everyone as a form of payment. Money in itself doesn’t hold any value.
• Back in the day, you could have exchanged money for gold. However, today money is not backed by anything. The only thing that makes money valuable is that we’ve all agreed & accepted it as a form of payment. The problem with money is that it’s centralized. It’s controlled by the governments & the central bank. With the dollar or any other currency, you’re entirely at the whim of their choices. If they choose to constantly print money you don’t rarely have a say your hard-earned money in the bank gets eaten by inflation & worth less.
• Another problem is that if you choose to send money overseas you get hit with exchange fees & exchange rates.
• The great thing about a cryptocurrency like Bitcoin is it solves all of these problems. First, it is not centralized, it’s decentralized. You don’t just have to rely on one central bank’s ledger to keep track of everyone’s money which none of us can see Bitcoin every computer that participates in the system keeps a copy of the ledger. So, it’s impossible to take down the system because you’ll have to take down thousands of computers that keep a copy of the ledger. So, it’s safer, everyone can see it, transparent, not one central authority has control over it & most importantly it’s protected against inflation.
• With Bitcoin, there are only 21 million total coins in the system so you can’t print more & devalue it.