A Brief Look Into Bitcoin

Bitcoin has reached an all-time high over the past few months. Having launched in 2009 by Satoshi Nakamoto, Bitcoin was worth almost nothing at first. This article guides you through Bitcoin, why it’s valuable, and the adoption of Bitcoin.

What is Bitcoin?

If you’re not familiar with Bitcoin, it’s a type of money that’s entirely virtual. It’s an online version of payment or compensation.

Bitcoin is a decentralised, peer-to-peer cryptocurrency system designed to allow online users to process transactions through digital units of exchange called Bitcoins (BTC).

What is Blockchain?

Blockchain plays a significant role in the authentication and authorisation of Bitcoin-related transactions.

Blockchain technology is, to put it simply, a process of recording information in a manner that makes it nearly impossible to change, hack, or cheat the system.

Going more in-depth, a blockchain is a digital log of transactions duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain includes several transactions, and every time a new transaction appears on the blockchain, a record of that transaction is added to every participant’s log. The decentralized database operated by multiple participants is known as Distributed Ledger Technology (DLT).

How Did Bitcoin Become Valuable?

There are several reasons why Bitcoin has shot up in value and popularity. Read below to find out more.

Quick And Easy Transactions

As a peer-to-peer digital currency, transactions are made almost instantaneously.

Low Cost

You can save money by paying through bitcoins instead of banks or credit cards as there is usually no transaction fee.

No Permission Needed

Conventional currencies and money require that you have permission to use them, whether it’s from banks, financial institutions, or the government. There are no such restrictions when it comes to Bitcoin.

Adoption Of Bitcoin And Cryptocurrency

According to research, global crypto adoption surged by 15.7%, with over 106 million crypto users in January 2021, the main driver of influence being Bitcoin.

More and more companies embraced the adoption of Bitcoin. Some of these are:

Twitch – The video streaming service platform first announced it would be accepting payments through bitcoin in 2014 and has recently offered a 10% discount on payments made through cryptocurrency.

Restaurant Brands International – In 2020, Burger King Venezuela announced that it has begun accepting numerous different cryptocurrencies, including Bitcoin.

Etsy – A company that allows craft and handmade items to be bought and sold, Etsy is super popular with artsy and crafty people. Some vendors at Etsy enable payments to be done through Bitcoin.

Overstock – An American service that sells designer brands and home goods to customers online, Overstock partnered with Coinbase to allow digital currency payments like Bitcoin.

Coca – Cola Amatil Limited – Announced a partnership with Centrapay to allow Bitcoin as a payment option.

Yum Brands – Brands such as KFC Canada and Pizza Hut Venezuela offered acceptance of Bitcoin.

Whole Foods Market – In 2019, Whole Foods partnered with Flexa’s “Spend” app to accept Bitcoin as a payment method.

PayPal Holdings – In October 2020, PayPal announced that American users could buy, sell, and hold a select few cryptocurrencies directly through their accounts using their Cash or Cash Plus account starting 2021.