The price of Bitcoin is touching new heights every day as investors are betting on it to become a mainstream asset. Cryptocurrency in India is becoming increasingly popular, with Bitcoin being the most popular digital currency. The value of this cryptocurrency increased after it bounced back in 2020. Here’s why it is seeing a surge in value.
Pandemic Induced Popularity
Bitcoin suffered a major crash in 2018 and became dormant until the end of 2019. But the year of the Great Lockdown, 2020, started seeing popularity in Bitcoin. The pandemic destroyed the global economy with strict lockdowns. The impact of that was it killed mainstream investments and assets. Fears of a crash of traditional assets created an ideal environment for the revival of Bitcoin and led to the current price. Branded companies and influential investors stockpiled it as an alternative asset to gold, equities, and money. If we analyse the increasing Bitcoin price in the last few years, it is a clear indication that it has reached beyond the tech geeks and has become an alternative investment option for even traditional investors. You can also see 1 bitcoin to INR to know its worth in Indian currency.
A Strong Community Base
Bitcoin has a strong community base that believes in the power of information. Bitcoin and cryptocurrencies are known for misinformation and rumors, and these community members are active on social media and provide clarifications and clear the air. Since no central authority distributes, trades or mines it, the Bitcoin community resolves issues by doing technical improvements and building apps on existing blockchains.
Transaction Costs are Less
One of the short-term benefits of using this digital currency is that it has a lower transaction fee than credit card companies like PayPal. For example, Bitcoin charges 1% on average compared to 2 to 4%. Also, temporary deposits can be availed and refunded without charges. These features help achieve ‘unbank’ transactions, international transactions, micropayments and more.
Less Risky Compared to FIAT Currencies
FIAT currencies are tied to a specific country, and many things can affect it and make it volatile. However, Bitcoin is decentralized and not connected to any country, and hence theoretically, it is more stable. Also, traditional banks have restrictions, and if the political and economic situations are bad, there can be huge taxes on them. Furthermore, in developed countries, the government can print money, causing inflation. Since Bitcoin only has a restricted number of coins to circulate, there will be more deflation.
Use of Supportive Technologies
Like the internet revolution, blockchain too is growing and will continue to grow in the coming years thanks to the supportive technologies. Innovations like Lightning Network have made Bitcoin faster, and other integrations are being worked on to overcome the shortcomings of the Bitcoin blockchain. Also, many changes and upgrades are happening to make this digital currency more efficient, scalable, and safe.
It is Transparent
One of the major reasons for adopting this digital currency in branded organizations is transparency. It is easy to evaluate transactions and also track the mining at any point. The transaction records can be accessed to keep track of the transactions. Additionally, the blockchain can be used in many other domains like education, building healthcare databases, elections, etc. There are many realistic uses of this blockchain that make it attractive and popular.
Bitcoin is not going away. It has shown enough resilience during the market and political onslaughts, so it is evident that it cannot be beaten easily. It is likely to stay as the leader of the blockchain and cryptocurrency.