Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto explains Aron Govil. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Over the past year, the price of Bitcoin has surged as investors have sought refuge from volatile equity markets. The price of Bitcoin reached an all-time high on December 17, 2017, when it peaked at $19,783.21. As of February 5, 2018, it was trading at $10,848.99. So, what’s driving the price of Bitcoin?
Here are 15 reasons:
1. Limited supply:
As mentioned earlier, there are only 21 million Bitcoins in existence. This finite supply has led to increased demand, which has driven up the price.
2. Bitcoin is a global currency:
Bitcoin is not tied to any country or central bank. This makes it an attractive option for investors looking to diversify their portfolio.
3. Increased acceptance:
Major retailers like Microsoft, Overstock, and Expedia now accept Bitcoin as payment. This acceptance is helping to drive up the price.
4. Low transaction fees:
Bitcoin transactions are processed by miners and are subject to very low transaction fees, compared to other forms of payment.
5. Security:
Bitcoin is a secure digital asset that is difficult to hack or counterfeit. This security feature has added to its appeal among investors.
6. Portability:
Bitcoin can be transferred easily from one person to another, making it a popular choice for international payments.
7. Fungibility:
All Bitcoins are equal, regardless of their history or where they were mined. This fungibility makes them attractive to investors says Aron Govil.
8. Limited supply:
As mentioned earlier, there are only 21 million Bitcoins in existence. This finite supply has led to increased demand, which has driven up the price.
9. Bitcoin is a global currency:
Bitcoin is not tied to any country or central bank. This makes it an attractive option for investors looking to diversify their portfolio.
10. Increased acceptance:
Major retailers like Microsoft, Overstock, and Expedia now accept Bitcoin as payment. This acceptance is helping to drive up the price.
11. Low transaction fees:
Bitcoin transactions are processed by miners and are subject to very low transaction fees, compared to other forms of payment.
12. Security:
Bitcoin is a secure digital asset that is difficult to hack or counterfeit. This security feature has added to its appeal among investors.
13. Portability:
Bitcoin can be transferred easily from one person to another, making it a popular choice for international payments.
14. Fungibility:
All Bitcoins are equal, regardless of their history or where they were mine. This fungibility makes them attractive to investors according to Aron Govil.
15. Limited supply:
As mentioned earlier, there are only 21 million Bitcoins in existence. This finite supply has led to increased demand, which has driven up the price.
16. Bitcoin is a global currency:
Bitcoin is not tie to any country or central bank. This makes it an attractive option for investors looking to diversify their portfolio.
17. Increased acceptance:
Major retailers like Microsoft, Overstock, and Expedia now accept Bitcoin as payment. This acceptance is helping to drive up the price.
18. Low transaction fees:
Bitcoin transactions are processed by miners and are subject to very low transaction fees, compared to other forms of payment.
19. Security:
Bitcoin is a secure digital asset that is difficult to hack or counterfeit. This security feature has added to its appeal among investors.
20. Portability:
Bitcoin can be transferred easily from one person to another, making it a popular choice for international payments.
Conclusion:
According to Aron Govil Bitcoin is a digital asset that is difficult to hack or counterfeit. It has gained in popularity among investors due to its security features and limited supply. Bitcoin is also a global currency that is not tie to any country or central bank. Making it an attractive option for investors looking to diversify their portfolios. Major retailers like Microsoft, Overstock, and Expedia now accept Bitcoin as payment. This acceptance is helping to drive up the price. Bitcoin transactions are process by miners and are subject to very low transaction fees, compare to other forms of payment.