Bitcoin is a digital currency that can be sent around the world without the interaction of a third-party intermediary. This ensures that no one is controlling bitcoin and it is purely a decentralized virtual currency. All the other cryptocurrencies were developed as an application or technology for specific businesses but bitcoin was solely developed as money in digital form. The first transaction was in 2010 when a computer developer Laszlo Hanyecz bought two pizzas for 10,000 bitcoins. As of now, 10,000 bitcoins equals more than $1 billion.
To buy bitcoin in Pakistan, you must have to involve a third person who is a professional trader of bitcoin. The trader will sell bitcoin to you and may even charge extra for service. In Pakistan, people are investing their money in bitcoin to sell it when the rates go high and gain profit.
Why is Bitcoin Getting Popular Day by Day?
Ever since its introduction, the numerous benefits of bitcoin have spread it all over the market. Bitcoin is also called a mobile currency because you can handle all your transactions from a mobile phone. It is an important element of the dashboard of some big investors all over the world. Here are some main points because of which bitcoin gained tremendous popularity.
#1 Higher Volatility in the Price:
Bitcoin was developed as an alternative to fiat currency, to perform quick and cheap online payments without the interaction of any central bank. Bitcoin gained unexpected popularity when the price of bitcoin raised from around 572 dollars to around 4,765 dollars in one year. Bitcoin was worth over 11,225 dollars as of July 20. This high volatility made bitcoin popular. Due to this, the market capitalization of bitcoin also increased drastically in those times and achieved a level of 117.8 billion dollars in the first quarter of 2020. One of the main reasons for bitcoin volatility is that most people invest in bitcoin for trading purposes, which brings volatility in the price of bitcoin.
#2 Bitcoin ATMs:
Bitcoin ATMs are one of the reasons for bitcoin’s popularity. Since early 2016, the number of bitcoin ATMs increased rapidly. A large number of bitcoin ATMs are located in North America and Europe. The global market share constituted by bitcoin ATMs located in Europe is less than 15 percent. The market share of bitcoin till July 2020 was approximately 35 percent.
ATMs of bitcoin make it easy for its users to withdraw their bitcoin into U.S dollars anytime they want. According to some big investors of the world, bitcoin is the future and it will completely take the place of fiat currency.
#3 Quick and Cheap Transactions:
The transfer fee of transferring bitcoin is much lower than that of fiat currency, which is catching everyone’s attention. Another amazing characteristic of bitcoin is that it takes significantly less time to transfer as compared to the traditional fiat currency. Fiat currency takes 3 to 4 days and sometimes even a week on international transfers but the transfer of bitcoin takes only a few hours. It can be sent and received all over the world. This is because Bitcoin is a globally decentralized currency and very few laws and restrictions of any country’s central bank apply to it.
#4 Completely Decentralized:
This is one of the most important and amazing characteristics of bitcoin, which is appealing to investors in particular. As bitcoin is a completely decentralized digital currency, it cannot be controlled by any government institutions or central bank. There is no storage and physical production issues in bitcoin. Bitcoin cannot be affected by any political decision. This can be beneficial for investors.
The future of bitcoin or overall cryptocurrency is still unpredictable. However, the above factors are the most important to trust bitcoin. That is why it got tremendous popularity due to the above-mentioned reasons. Bitcoin may become one of the most trusted online payment choices soon but the only difficulty bitcoin is facing right now is regulation on the crypto market. For the people of Pakistan, it would be a better decision to only invest in bitcoin for trading purposes. To buy bitcoin in Pakistan is complex, and currently, the government of Pakistan is not supporting the crypto market.