With a market capitalization of over $700 billion, Bitcoin has become the most widely accepted digital currency in the world. However, it wasn’t always so. There was a time when few people had even heard of it. However, through its persistent dedication to innovation, Bitcoin has carved out a niche for itself as a trustless, decentralized digital currency. In this blog post, we will explore the factors that have contributed to Bitcoin’s growth and explain how you can take the Orange Pill and become a Bitcoin adopter.
What is Bitcoin?
Bitcoin is a digital currency created in 2009. It is a decentralized currency without a central authority or financial institution managing it. Unlike fiat money (government-issued currency), there’s no physical representation of money — only numbers in a digital format.
The Bitcoin network is made up of users’ computers. These computers are “nodes” that protect the network and verify transactions. They also help create new Bitcoins by solving complex math puzzles.
When a node accomplishes these tasks, it receives a reward — currently 12.5 new Bitcoins. This process is known as “mining.”
Mining is the mechanism by which new Bitcoins are created. However, Bitcoin isn’t just about mining and distribution. It’s also used as a method of payment.
How to Take the Orange Pill and become a Bitcoin Adopter
People have been using Bitcoin since the early days of the internet — but it wasn’t until 2011 that the first widespread media coverage appeared.
At the time, the US government was cracking down on digital currencies in order to prevent their use for illegal activities. As a result, many people lost trust in the currency.
However, as the government began to ease up on its stance, public interest in Bitcoin slowly began to grow again. By early- to mid-2016, the numbers of people using and investing in Bitcoin had reached all-time highs.
Factors driving Bitcoin Adoption
As with any technology adoption, there are a number of factors that have contributed to the growth of Bitcoin and other digital currencies.
Some of the more notable ones are:
Availability of the technology – Bitcoin is decentralized and exists almost solely through digital means. As such, its adoption depends on people’s ability to access and use it. This factor has played out particularly well during the 2017 cryptocurrency market crash, when access to some digital currencies was limited.
Familiarity with existing financial products – Both fiat and digital currencies are “fungible,” which simply means they’re interchangeable — you can trade one unit of Bitcoin for another without any impact on the value of either. However, many people have little to no knowledge of or interest in fiat money. That’s where digital currencies come in.
Trustworthy sources – In order for a new technology to grow, it needs to be accepted by the general public. It’s not enough for tech journalists and influencers to take an interest in a new technology; the general public needs to be able to trust those individuals to provide accurate and unbiased coverage.
What’s stopping Bitcoin Adoption?
With all these factors in place, you might be wondering: Where is this adoption? Why aren’t more people using Bitcoin?
The answer to both questions is adoption by the general public.
As we’ve discussed, individuals can adopt Bitcoin by mining it, purchasing it, or receiving it as a gift. However, the vast majority of people don’t know how to go about doing any of these things. And even among those who do, many aren’t aware of the benefits of Bitcoin over other payment methods.
That’s where digital currency advocates and evangelists can help. An effective digital currency ambassador can help educate the general public on the benefits of using and investing in Bitcoin.
Solutions for accelerating Bitcoin Adoption
As the world’s most widely used cryptocurrency, Bitcoin has a great deal of potential to increase adoption. However, it isn’t a perfect solution.
Some of its limitations include:
Security concerns – Although Bitcoin has been used without incident for more than eight years, it’s still a new technology — and security vulnerabilities will always exist. It’s important to always be careful with new technologies that we don’t know too much about.
Costs – Bitcoin isn’t free. There’s a small fee (currently around $0.20) for each transaction that gets added to the Bitcoin network. This fee doesn’t exist to make money; it’s designed to compensate the people who run the network.
Bitcoin isn’t a new technology, but it’s a new kind of money — a digital currency without a central authority managing it. It’s also growing in popularity thanks to its multiple benefits. If you haven’t taken the Orange Pill and used Bitcoin yet, now is a great time to start. With the recent surge in interest, it has never been easier to get started and read here