The key features that make Bitcoin so popular are plenty. First, as any single entity or government does not control Bitcoin, it is free of political instability or poor governance. As the money is stored online electronically without using a bank or person’s name, it is free from taxes or expensive fees. Furthermore, unlike fiat currencies, there is a truly limited supply, as supply is limited to mined volumes and can’t ever exceed 21 million total units. This creates a limited supply that can’t be manipulated and a scarcity-based valuation similar to a commodity.
Powering A New FinTech Sector
Not only has Bitcoin been a great invention on its own, but is responsible for spawning an entire chain of new industries. This new sector includes Bitcoin wallets, exchanges, other similar currencies and a whole network of Bitcoin ATMs that are now available in 55 countries. Furthermore, the blockchain technology Bitcoin used in its ledgering system is estimated to have the potential to save the top 10 investment banks alone, between 8 and 12 billion USD, if implemented into their systems. Another major industry rising out of the Bitcoin craze is the mining industry that actually mines or, rather. creates the currency. Some of the biggest among these mining operations can be found in China. Chinese mining pools control around 81% of Bitcoins collective hash or mining rate.
Considering that 100 USD invested into Bitcoin in July 2010 would be worth over $6 million in today’s market, Bitcoin is a clear winner and likely the Internet age’s best invention yet.