Bitcoin’s Secret Superpower: The Network’s Effect

By January 14, 2022January 30th, 20224 minute read
Bitcoin secret superpower the network effect
Note: This blog is written by an external blogger. The views and opinions expressed within this post belong solely to the author.

Bitcoin has successfully created a buzz among crypto enthusiasts in the past few months. Moreover, most cryptocurrencies depend on Bitcoin, and many investors believe that it is the fastest path to riches.

The real reason behind inventing bitcoin was to let the users store, transfer, and receive money without the indulgence of banks or credit card companies. Digital currencies like bitcoin were brought into the market to eliminate the need for credit cards, Venmo and more. It was designed to give the trader full access to their funds without extra charge. While compared to digital currencies, banks and credit card companies are slow and expensive.

How Can Bitcoin Help the Mainstream Public?

Bitcoin is a digital currency, and it exists only on the internet. You can get it as a folder on your computer, which can be viewed and transferred worldwide using computers. These are called Bitcoin nodes. No physical institution is involved in its functioning. 

The Bitcoin network’s structure is distributed around the world. It employs Bitcoin Core Software, which secures transactions. The dispersion of these nodes (computers) aids in establishing networks that host the entire bitcoin network.

Bitcoins are independent assets. A central bank or administrator does not govern it. It is highly dependent on market forces and crucial internal factors. 

  • Save Bank Charges

Digital currencies like Bitcoin hold power to eliminate the use of financial institutions. They can help you execute your business transactions more efficiently and at lesser costs. All the transactions and payments can be made over the internet with no intermediaries. That means businesses can conveniently pay stakeholders and receive payments from customers.

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Bitcoin is the future. The earlier it is adapted, the more beneficial it will be. Unlike traditional transactions in money, there is no physical involvement of money here. This makes it the fastest and cheapest mode for transactions in the world. In simple words, this could be a new form of money that is completely digital.

  • Breaking The Barriers

Bitcoins use certain algorithms to facilitate financial transactions in real-time. In general terms, it breaks all the barriers which often complicate it for the users (while this is not rocket science). It allows global access to cash exchange, which was not possible before. This means, with Bitcoin, one can maximize their revenue and expand their business internationally with ease.

  • Facilitate Better Access 

Credit cards are required to be processed under the purview of a financial institution that approves the same. On the other side, Bitcoin is the market gateway that provides complete control over the entry, exit and funds without any obstacles.

Bitcoin will allow you to transact and manage your funds more efficiently than traditional payments. You don’t have to wait for credit clearances either. It is thereby termed as a decentralized currency.

What Stops the General Public from Investing in Bitcoin?

Bitcoin is a superpower tool. However, people resist investing in it. Bitcoin has established itself as the largest cryptocurrency in the market. Despite its huge success, there has been a misconception about digital currency. Some of the famous ones are:

  • Hard To Spend

This is one of the misconceptions which stops people from investing in bitcoin. They often misjudge the prospects of spending Bitcoins. If you find yourself asking, what to do after you grow in worth? Then here is the answer: Spending your Bitcoin is easier than you think. You can spend bitcoins on regular activities like buying coffee or purchasing shares of a company that accepts them. Everything is possible. With time, more and more companies are accepting payments in Bitcoin. Microsoft and Telecoms AT & T have been accepting payments in bitcoin for many years.

  • Prone To Hacking

Many often believe that Bitcoin, being a digital currency, can be hacked or stolen easily and so it is better not to invest. While the truth is, Bitcoin uses the most advanced cryptography to secure transactions. The Blockchain backing bitcoin is continuously reviewed and kept leakproof.

Blockchain is the technology that underpins Bitcoin’s high value. It is responsible for safe transactions and is in charge of ensuring the security of transactions. It is the one that eliminates the need for third-party intermediaries such as banks and credit card firms. Bitcoin hacking is really difficult. Some believe that bitcoin on its blockchain is even more secure than the money you keep in banks.

  • Highly Complicated

Buying and investing in Bitcoin has long been thought to be a time-consuming process. However, this is not the case. It is as simple as driving your car or using your phone. It is, certainly, a little technical. Just like a car, you need experience and understanding to trade it more efficiently.

It’s a new notion, and you’ll need some time to grasp it. 

  • Pyramid Scheme

Bitcoin is frequently thought to be nothing more than a pyramid scheme. This isn’t correct. A pyramid scheme is a business plan in which participants are recruited to sell and grow the firm. Members are rewarded for their participation. There are no rewards or guaranteed returns on coin purchases and sales here.

  • Lack Of Regulatory Body

Bitcoins are frequently avoided because they lack a governing organization. People are hesitant to invest in these. However, this is not entirely accurate. Bitcoin is a decentralized open-source fund that can be accessed all over the internet.

The fact that all real-time transactions are transparent is the proof. A strong algorithm safeguards the system. It is governed by strong market forces and is well-established in the trading business.

Bitcoin is an innovative system, and understanding it may help you grow your business and personal investments. It is a well-designed system that enables the safe transmission of money via the internet. Bitcoin eliminates the need for third-party financial institutions.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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Shashank

Shashank

Shashank is an ETH maximalist who bought his first crypto in 2013. He's also a digital marketing entrepreneur, a cosmology enthusiast, and DJ.

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