Although our ancestors were used to using coins and banknotes, currently, we couldn’t imagine our lives without plastic money and online payments. They make our lives much easier, as thanks to the former, we don’t have to carry everything in our pockets, or in the case of the latter, there’s no need to go to stores physically.
However, even though those inventions revolutionized our world, cryptocurrencies could do so to an even larger degree. Right now, you could use cryptocurrencies to pay for some types of services or even use them to play in online casinos – if the second option seems interesting, you could read more on this subject.
Although we should remain skeptical about the possibility of Bitcoin, Ethereum, or IOTA replacing national currencies altogether, they have already reached an impressive level of popularity. If you aren’t sure why cryptocurrencies became so popular, worry not – in a second, we’ll go over the major reasons. Let’s go!
Why Cryptocurrencies Were Created?
To make it easier to understand the quick ascent of cryptocurrencies, we should look at the circumstances in which Bitcoin, the first cryptocurrency was created. Though as a result of the COVID-19 pandemic, the state of the economy is pretty bad, this situation could not be avoided.
On the other hand, when it comes to the global financial crisis of 2007 – 2008, it was largely caused by irresponsibility on the part of the US banks and the bursting of the housing bubble. As a result, a lot of people all around the world became disillusioned with the financial system in place, as it did not manage to protect against the greediness of top-ranking bank officials. The financial institutions that were trusted by millions of people were proved to not be so reliable after all.
Why Bitcoin Became So Popular Among Internet Users?
Although it wasn’t the first time that the idea of creating an alternative way to pay for services and products was floating around, it wasn’t until Bitcoin that it finally became successful. The primary difference from the previously known financial systems was its decentralization. It means that there is no institution that could stop the transactions between users from proceeding or affect them in any way. It allows for the free exchange of funds without having to worry that your account could be frozen at any time.
At the same time, all users are granted full anonymity, meaning that their transactions are untraceable. It is especially important for internet users in countries with oppressive governments that persecute members of certain faiths, nations, or communities.
However, that’s not all. As a result of international conflicts, all bank transactions between 2 countries might be forbidden. Cryptocurrencies make it possible to circumvent those regulations, rendering any embargoes inefficient. However, we don’t even have to go as far to point out the benefits of using cryptocurrencies.
As we have previously mentioned, Bitcoin is a decentralized cryptocurrency. Although “decentralized” currencies aren’t necessarily better, the recent events showed that we shouldn’t expect the largest financial institutions to act in the interest of regular people. Because of that, the “benevolence” of the banking system is only an illusion. Your account could be frozen at any time, and the bank doesn’t even have an obligation to inform you why.
Apart from the anonymity and the lack of a governing body, cryptocurrencies have yet another advantage over the traditional banking system. Namely, it is the speed of transactions. That’s a consequence of the fact that the funds go directly from one user to another.
Normal bank transactions typically take several days, as the money has to go through a middleman first before it ends up at another person’s account. On the other hand, cryptocurrency transactions don’t take more than several minutes, making it a much better solution if you need to transfer the money urgently.
Thanks to all the technological developments, our day-to-day life is much different than that of our parents or grandparents, and it isn’t surprising that the way we pay for products and services changed as well. The first credit cards were invented more than half a century ago, though since then, we have witnessed a large number of other inventions that make our lives more convenient.
The first cryptocurrency, Bitcoin, was created a little more than a decade ago, and since then has experienced an unexpected rise to prominence. It offers its users anonymity, unparalleled freedom, and the ability to transfer funds within a few minutes. We hope that after reading this article you now understand why it was created in the first place and which factors helped it attain its popularity.