Bitcoin was known since 3rd January 2009 as it was launched on the network on the same day. It was not so much popular at that time, and it was unknown to all investors all over the world. Bitcoin is based on open ledger blockchain technology, and this property makes it different from other fiat currencies. Blockchain technology is immune to alter, and it means once the transaction is done, it cannot be reversed or altered by any means.
First-Mover Advantage (FMA)
As per FMA theory, this is observed that the first who enter into the market can get massive advantages such as brand value, customer, market share, and recognition. The same thing applies to Bitcoin because this was the first mover in the cryptocurrency world, so it has got the highest market share and brand value till now. Before the launch of Bitcoin, no one had heard about cryptocurrency and now because of Bitcoin, thousands of Altcoin have been launched in the crypto market. Although there are so many cryptocurrencies in the running market, Bitcoin is still the boss of all cryptocurrencies.
Secured way of transaction
Bitcoin is thought to be highly secured because of its blockchain nature. The transaction in blockchain-based cryptocurrency is immutable to edit, and once a transaction is carried, no one can alert or edit. This is an irreversible kind of transaction. Moreover, it is confidential, and the transaction is known to the sender and receiver only. The third party cannot track the happening of transactions, and therefore it is called a peer-to-peer transaction. When any person is sending Bitcoin to another peer then it is validated by miners around the world. The user can store Bitcoin offline or online in an extremely secured digital wallet. User can put their Bitcoin in a hot wallet or cost wallet where the hot wallet is connected to the internet, and the cold wallet is having a facility offline.
Cheaper transaction cost
Bitcoin coin transaction incurs very cheap as compared to other fiat currency. The transaction needs to be validated when the bitcoin is transferred from one peer to another peer, and for the validation, a miner takes a small portion of Bitcoin. Where in the bank, if you transfer, you need to pay a huge amount of money as well as the conversion rate. Since all the transactions are carried out online, it is not required to visit a financial institution or bank to process your transaction. There is a time limit for every transaction in the case of fiat. Fiat transfer is available for a limited time or office operating time. Still, you can transfer Bitcoin any time in any part of the world, and you just need your peer wallet digital address. This is not so much time-consuming and expensive, but Bitcoin transaction is the easiest way for any user. Because of the cheap transaction, Bitcoin is popular among online game players, businessmen, and retail users. The average transaction in Bitcoin is 400,000 approximately, which is increasing day by day. The average transaction fee is $23, and this is calculated as per size in bytes.
Volatile like Safe Haven
Due to its high fluctuation, it attracts not only the general user but also speculators and hedgers. Most of the trades in derivatives are done in gold and that is called a safe haven. In the same way, Bitcoin is also considered as a safe haven, which means if you invest your money in Bitcoin, then there are high chances of return and fewer chances of loss. In currency, the United States of American Dollar is considered as a safe haven as well. This is estimated that the total of active crypto traders being between 51.2 and 52.4 million. Bitcoin is highly in demand and its supply is limited. It cannot be increased, and therefore, there is so much volatility in the Bitcoin price. Bitcoin is also used as a tradable instrument in derivatives where it is traded through CFD, and because of this, Bitcoin gets drift velocity for fluctuation. Speculators try to use the opportunity of fluctuation into Bitcoin, and they place an order at a bullish price and go for a short sell in bearish mode. Bitcoin is traded against fiat currency like BTC/USD or BTC/EUR. Since Bitcoin is having much volatility, so it is traded through exchanges also like Chicago Mercantile Exchange.
The above discussion reveals to us the rising popularity of Bitcoin. Bitcoin is like magic for few investors who became millionaires who invested in Bitcoin long back. There are so many reasons which are driving the popularity of Bitcoin which can be found out. Among those, its liquidity, volatility, security, and decentralization are major factors. Because of Bitcoin's rising popularity, many countries like China are trying to bring their cryptocurrency.