It would be fair to say that Bitcoin is the most popular online currency in the world, but what exactly caused its success? Well, firstly the currency is cheap to use. In everyday transactions online, most currency is subject to the charges of a bank or other financial institution to process it. But Bitcoin relies on peer-to-peer transfer, cutting out these institutions and making the whole process cheaper. In the UK and the rest of Europe, Bitcoin is exempt from VAT, making it an increasingly popular option.
Some users are also pleased with the anonymity that using Bitcoin provides you. When you purchase Bitcoins, you need to store them in a money wallet which requires little more than your email address to set up. Transferring money to one another is then done by providing a key code that the other party receives. There are no names, addresses or emails involved, making Bitcoin the cryptocurrency of choice amongst certain clientele. Many are taking advantage of the anonymity to access Bitcoin casinos from countries that are banned from using them, such as the US.
Bitcoin is also becoming more popular with retailers, often from the tech world such as Microsoft, allowing users to purchase items from their websites using Bitcoin. The number of retailers is increasing on a global scale daily, with many small businesses as well as larger companies jumping in on the idea. From a business standpoint, this is all about providing what the customer wants, and extra payment methods are going to increase the number of people through the door. It makes sense then that retailers are taking the chance on the crypto-currency.
The currency has also seen a surge of users in China, with around 80% of the world’s Bitcoin transactions being made in the country. In 2016 the amount of people using Bitcoin rose considerably thanks to the weak performance of the yuan against the US Dollar. Many were prompted to invest in the Bitcoin in light of the yuans poor prices to shelter from the instabilities of the yuan. Other people are simply choosing to invest in Bitcoin for the long term future. There are over 16 million Bitcoin in circulation today, with the maximum number of Bitcoin being released capped at just 25 million. Because of the limited number of Bitcoin available, some investors have decided to purchase Bitcoin now in the hope that the value will go up when the currency becomes rarer to find. This phenomenon is seen in the physical currency world all the time but is somewhat surprising given that Bitcoin is nothing more than a line of code.