Bitcoin has made enough noise in past years that it no longer needs any introduction. Experts have viewed bitcoin as the future of finance. It simply indicates that cryptocurrencies are going to redefine the financial sector in the coming years. The price of the bitcoin has reached its all-time high and the number of bitcoin traders is also increasing. So did you ever think what’s so great about bitcoin that it surpassed the price of all trading stock along with the fiat currencies? Why is bitcoin so valuable and expensive? Why do ordinary people, other than the investors and traders who are not into trading, invest in bitcoin?
If you are still wondering the answer to this question then just continue reading. In this article, I am going to answer what makes bitcoin so valuable and expensive.
According to Statista, Bitcoin emerged as the most expensive currency today with the price of one coin valued at over 46,000 US dollars. Initially, there were a lot of fluctuations in the price of bitcoin but time and growing advancements made it a more reliable and mature cryptocurrency. Moreover, with the growing reliability of cryptocurrency people have started viewing fluctuation in the crypto market as a lucrative opportunity to grab and lock huge profits. Many platforms are launched in the market like Vertex Market to facilitate convenient trading of cryptocurrencies in the capital market. You can convert your local currency to any crypto easily for example BTC to NGN while in Nigeria or any other part of the world
Such platforms enable users to trade for any crypto at their own place and currency conveniently. For example, if you want to know how to buy Ethereum in Nigeria just use platforms like Vertex market in Nigeria for crypto investing.
Moreover, the best kind of service that these applications are providing is that there are no foreign currency exchange issues. In other words, you can buy or sell bitcoin in Nigeria in your own preferred currency.
If you were also thinking how to buy bitcoin in Nigeria, then I think you got the answers. There are many platforms that facilitate crypto trading but choose according to your needs and requirements to avoid any future inconvenience.
What makes any currency valuable?
Fiat currency is backed by no one except the faith and trust in the currency’s value. The central bank of the nation bears the responsibility of managing the supply and regulation of currencies.
Initially, gold standards were used to value any currency but later it was put to an end and from then currency management is done by the central government.
Why do bitcoin value so much?
Bitcoin is derived from the proof of work algorithm. However, we need not go this much deep to understand its value. Bitcoin works on block technology. It forms a chain of blocks. Thus any entity does not have control over others. And here it becomes interesting. No one can know where the block starts, where does it belong, the history of the transaction, and any other question that can lead to the leak of confidential data that can be manipulated in order to hack it.
Bitcoin is more preferred because it works on digital signature and does not store the personal data of the parties involved in transactions.
It is basically a decentralized system network system that operates on the math and robustness of different codes used in the systems. Many governments are looking to adopt bitcoin transactions in their financial operation to secure their organization framework and confidential data. Bitcoin is a future-proof system that safeguards your organization from cyber threats and crimes.
The growing digitalization has significantly boosted the need for such a system. The best part is that it can never be hyperinflated. There is a limited number of bitcoin all across the globe and only a few left to mine. Thus limited source is always expensive and so is bitcoin.
Some of the characteristics of bitcoin that make it valuable and expensive
You always prefer to have assets that do not require any maintenance. Being a virtual asset, bitcoin does not need any maintenance and they are free of wear and tear and thus is a durable and forever-lasting asset that you can keep with yourselves.
It can be transferred from one wallet to another efficiently and conveniently. The portability of bitcoin helps in dealing with the person across the globe. If it would have been physical assets then trading in bitcoin could have been much more difficult. You just need an internet connection and with one click you can transfer it to any part of the world you want.
It can be divisible in any fraction you want. This has made the buying and selling process easy otherwise very few people would be capable of buying one whole unit. No other currency can be bought or traded fractionally and thus it makes this more valuable and expensive. Not only for the individual but for the big organization also the divisibility nature of bitcoin has proved to be of great help.
Since it’s based on math and codes, it’s all homogeneous and uniform in all ways. The best thing is that they can’t be counterfeited. This makes bitcoin unique and more expensive. Many organizations are using bitcoin in their financial transaction due to the same reasons. It is the future prof framework that secures your business operation and transactions.
As already mentioned bitcoin is available in limited quantities. Anything that’s scarce in number is always considered precious. Thus the value of bitcoin is so high. Moreover, it reduces the risk of being hyperinflated ever in the history of crypto, unlike many other available fiat currencies.
Such features and robust infrastructure make bitcoin expensive and valuable. The robust infrastructure is impossible to break in between and being hacked. The big organization is a die heart fan of bitcoin for such quality. Moreover, the working of the bitcoin transaction does not include the identity of real persons involved in the process. It works on the primary and secondary keys in the blockchain that only requires digital signatures for completing the transactions. Thus gathering all these features in one nutshell called bitcoin has made it so valuable and expensive.