Bitcoin is popularly known as the “King Crypto”. It has had to face a lot of roadblocks aimed at showing it as without any value. In this article, we remind why the world’s largest cryptocurrency is truly valuable.
Popular billionaire Warren Buffet once referred to Bitcoin as a “gambling device”. Adding that it has no intrinsic value, furthermore comparing it to a button sitting on a shirt doing nothing. This, however, couldn’t be any further from the truth as several unchanging facts, points to how valuable the “King Crypto” is. And how it is quite realistic to say that Bitcoin is here to stay. But what gives it its value?
This article will showcase how valuable Bitcoin is.
Bitcoin is built on blockchain – Blockchain has been proven to be reliable, effective, immutable, and trustless. Many schools of thought believe in blockchain but refuse to pass on that belief to Bitcoin and cryptocurrencies. However, one of the main reasons it is valuable is its underlying decentralized technology. As a result, it eliminates the need for a central governing body or middlemen.
Bitcoin is durable – One major importance of blockchain as the tech behind the cryptocurrency is that it makes it infinitely durable. Simply put, Bitcoin is here to stay as it is a digital token. Since it exists on the web, “it can not be damaged”.
Bitcoin comes at a cost – Bitcoin does not just fall out of the sky. Just like gold mining, it also requires real effort and costs. It takes time, effort, and money in the form of expenses for equipment (mining gear), electricity to mine the cryptocurrency. Essentially, all this is a pointer to its value.
Bitcoin is scarce – Like most precious metals, there is no unlimited supply of Bitcoin. Undoubtedly, scarcity is equally proportional to value. As we know, only 21 million of this cryptocurrency can be mined. Since its supply is finite, and its scarcity is certain, hence it is valuable. Even more important is that the crypto undergoes halving every four years. Find out more about the halving that took place this year.
Bitcoin enjoys predictable inflation – This is quite unlike other stores of value. Though they are scarce, their scarcity is however unpredictable. The “King Crypto”, on the hand, is mined using a deflationary model. This model facilitates its adoption while also ensuring prices remain stable.
Bitcoin is trustless and transparent – A popular saying in the crypto space is “don’t trust, verify”. It encourages a trustless platform. Users can also easily track it, where it is coming from using its blockchain. When using it, you have no need for a third-party either the government, bank, etc. Anyone can thus look into the crypto’s decentralized ledger (blockchain) to see or track any transaction.
Bitcoin like fiat is highly divisible – However, Bitcoin has an undeniable advantage over traditional currencies. While the US dollar or the Euro is only divisible to a hundredth of its value, the smallest unit of the crypto is 1 Satoshi. With 100 million Satoshis making one unit of Bitcoin, it thus represents the crypto up to 8 decimal points.
Bitcoin is not restricted by borders – One of the most important uses of Bitcoin is cross-border transactions. Effectively, they facilitate cheaper and faster transfer of funds to other regions of the world.
Bitcoin cannot be forged – This is quite interesting as a major issue of fiat currency is their susceptibility to counterfeit. The ” King Crypto”, on the other hand, is immutable. So there’s no worry whatsoever of spending a forged Bitcoin.
Bitcoin is decentralized – Simply put, it isn’t under the governance of a central body. Its code, data, and other information are not stored on a central server where it can be manipulated or hacked. It is operated on nodes (computers) all over the globe making it impossible to hack into. In the event of one of the nodes being compromised, the other computers will cross-check and subsequently reject the change. Decentralization, in other words, ensures the ledger remains true, reliable, and accurate.
The ” King Crypto” is also smart, apolitical, pseudonymous, fungible, portable as it can be stored even on paper.
Though Bitcoin still has a long way to go in terms of global adoption, it has already achieved admirable milestones. Several government agencies and top personalities like POTUS Donald Trump have expressed dislike for it and cryptos in general. However, without a doubt, cryptocurrencies are here to stay. And like US Congressman Patrick McHenry said: “The world that Satoshi Nakamoto envisioned, and others are building, is an unstoppable force. […] instead ask ourselves: what are we doing to meet the challenges & opportunities of this new world of innovation?”
Also read what the thought leaders in the crypto space had to say about the third Bitcoin halving that took place on May 12. Besides, find out why the Morgan Creek Capital Management founder, Mark Yusko, is extremely bullish about the cryptocurrency and its value.