October 13th, 2021
Bitcoin has become too big to fail. With interest in the digital payment network spanning from tech enthusiasts to individual retail traders, and now encompassing large institutional investment firms – most people agree the success of Bitcoin is inevitable. One doesn’t have to look very far to find massive support and adoption of the cryptocurrency, even on the national government level. Although, it is still considered a new technology, and is going through its own price discovery, it reacts strongly to positive catalysts and is relatively resistant to negative chatter. These absolute facts will show why Bitcoin is digital granite now and will remain for many years to come.
1.Almost A Billion Transactions Completed
According to data available on Nasdaq.com, since Dec. 2008, when Bitcoin became publicly available to purchase, to now Oct. 2021, the entire Bitcoin network has processed a whopping 677 million transactions and counting. In January of 2021, the number of daily transactions peaked at roughly 400,000 verified transactions for a single day. This is not a one-off, the average number of transactions processed daily on the Bitcoin network alone is 250,000. Many studies have calculated, this works out to about 7 transactions per second. In 2008, this seemed unfathomable, in 2021, the success of Bitcoin has become obviously inevitable.
2. Bitcoin Uses Renewable Energy
Although China has recently enforced a massive crackdown on Bitcoin mining and usage, it remains the world’s undisputed leader in mining power, currently mining around 60% of the network’s collective hashrate. This is largely due to the cheap electricity pricing in some areas and the manufacture of the equipment done in the country. However, since the crackdown in China, the U.S. is surging behind and is now the world’s second largest mining power. Many large mining farms in Texas, Utah, and Pennsylvania are using the natural resources such as wind, hydro (water), and solar available to them to mine Bitcoin in a more environmentally friendly way. With all the focus on global environmental awareness, especially in the U.S., searching for new and innovative ways to uphold the Bitcoin network, while being kind to the Earth and mindful of energy consumption, is sure to progress and is possibly the next big move for Bitcoin.
3. Big Banks Invest in Bitcoin
As Bitcoin continues to perform, banks across the world have taken notice. Currently, 50 of the world’s top 100 banks are holding or investing in Bitcoin in some form. Whether they hold it directly or by backing other crypto-oriented organizations to provide funding, there is bank interest everywhere. If crypto is going to disrupt the traditional financial system, the banks are sure to make money along the way. Amongst these large banks are Citigroup, UBS, Morgan Stanley, and JPMorgan Chase, just to name a few. Each of these banks have trillions of dollars in assets under management, and now offer the world’s largest crypto-backed funds on the market.
4. Bitcoin’s Creator is Anonymous
One of the most beautiful aspects of Bitcoin is its anonymity of its creator, Satoshi Nakamoto. Most large companies or technologies that have developed over the years have a clearly defined figurehead, responsible for creation or bringing the product to market.
While this is nice for fame and recognition to some, it leaves a lot of margin for corruption and manipulation. If one of these founders were to say, or do, something unpopular to public opinion the entire organization could be turned upside down and fall from its elite level. Bitcoin, being able to distance itself from this, survives in an environment that can be globally adopted without the need for a political influence or affiliation. The true identity of Satoshi is unknown to this day.
5. Bitcoin is Scarce
If these coins are created from computing power, aren’t there enough computers in the world to produce infinite Bitcoin forever, much like printing money? In short, No. When the Bitcoin network was designed and written by Satoshi Nakamoto in 2008, the white paper addresses this head on. Satoshi clearly illustrates that there will only be 21 million coins mined, with the final coin being mined somewhere around the year 2140. Because miners are always running to uphold the network, and in turn earning a BTC reward, he designed the protocol to “Halve” the mining reward every 4 years, or 210,000 blocks. This ensures the miners wont rush to earn, and in turn leave the Bitcoin network completely “tapped” with no available coins to issue to miners or those willing to purchase the coins outright. The reward started very high to incentivize interested people to use their computing power to set this chain of events in motion. As it grows in popularity, the reward is halved in time to ensure everyone globally has an opportunity to participate in Bitcoin. This system is flawlessly executed and creates a supply limitation to battle potential inflation and create scarcity. Therefore, Bitcoin is a far superior cryptocurrency to others, as well as the traditional banking system we all use today for the U.S. dollar. This in combination with the layering, scalability potential Bitcoin has, creates a secure ever-expansive digital payment network, suitable for global decentralized “banking”.
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