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Reasons why Bitcoins are gaining popularity

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Bitcoins are a form of “e-money” which is made of complex code created with the help of computer. Process of creating Bitcoin is called mining and it can be carried out by anyone with the help of a computer. Bitcoin is free from central bank intervention and is a promising form of electronic cash. Bitcoin is currently under experimental mode used over the internet. However it is gaining popularity among people at a tremendous pace. Read all about Bitcoins in my earlier article.

Reasons why Bitcoins are gaining Popularity

1. Bitcoins can be easily stored on a user’s Hard Drive

It is easy to store Bitcoins in a virtual wallet of an individual which is stored on a hard drive. The software written to create Bitcoin is difficult. So once mined, Bitcoins are stored on a user’s hard drive in a virtual wallet. It can be directly sent to other person bypassing the intermediary banks while remaining anonymous.

2. Developments have brought Bitcoin to limelight

Cyber currency as a concept existed for years. However the perfect storm of technological advancement and development has helped Bitcoin get the centre stage. The development in the global economy has brought Bitcoins to the cusp of mainstream use.

3. Strong Cryptographic Feature

Bitcoin is created, used, transferred without the help or intervention of any intermediary banks. The transactions are done independently. The cryptographic feature of the currency makes it immune from counterfeiting. The level of anonymity associated with the currency promises the ability to spend money over the internet without fear of censor.

4. System is a network of ‘miners’

The system of creating Bitcoins is called mining. Also it can be created by any individual with the help of computer and set of programs. The system is a network of “miners” who supply the network with the processing power. This is necessary so as to maintain proper transparency in the system. Tally is one of the ways to prevent fraud and miners are rewarded for supporting the system.

5. Retailers have welcomed Bitcoins

There have been several arguments over Bitcoin design. However the true test of a currency lies in the hand of retailers if they can buy anything using the same. It is interesting to note that Bitcoin has passed the test. From hard drugs to hard currency, songs, cars, consumer goods and many more, retailers have welcomed the new technology of Bitcoin. Bitcoin is being widely accepted by the masses.

6. Not Vulnerable to cyber attacks

It was noticed that the virtual currency is vulnerable to cyber attack. In June 2011, cyber attack, when the hackers targeted virtual wallets and tried to wipe out the accounts, Bitcoins was the one which had limited risk and remained safe. The safety issue of Bitcoin was identified by the European Central Bank during June 2011 cyber attack.

7. Number of businesses accepting Bitcoin are growing

The currency crises in Europe helped Bitcoin gain tremendous popularity. The investors interest grew and the number of businesses announced acceptance of Bitcoins for wide range of goods. Very soon this became a movement in Europe and Bitcoins gain tremendous popularity not only among individuals but also businesses and corporate houses.

8. Two high-level champions: The Winklevoss Brothers

The Winklevoss brothers need no introduction, they are known to be the men behind the idea of social network. The brothers also accused social network giant Facebook Inc. founder Mark Zuckerberg for stealing the idea. The currency appeared to have the two masterminds after its success. The currency at least has two high-level champions: the Winklevoss Brothers which itself makes it an idea worth thinking.


Niraj Satnalika

Niraj is an MBA in International Business (Finance). Prior to this he completed B.Tech in Electronics and Instrumentation. He is currently working with Confederation of Indian Industry (CII), Kolkata in capacity of Consultant. Satnalika is actively involved with an NGO and works towards promoting education among the underprivileged.

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