Bitcoins were the first ever cryptocurrency created which was being launched in the year 2009. Cryptocurrency can be simply defined as the digital or virtual currency which was designed to make online transaction extremely secure as the transaction through the cryptocurrency is secured by the mathematical algorithm and each of it has its unique algorithm.
The “Electronic cash” would operate on a technology layer called the Blockchain, where several computers validate this transaction by solving the mathematical algorithm and it collectively promotes and enables the transparency and trust in the system without the interference of any third party or intermediary.
Why Are Bitcoins Special?
Bitcoin do not require large industrial machines, huge warehouses and extremely guarded armed vehicles for its security; in short, it does not require any cost of physical production. It is comparatively inexpensive as it is entirely digital and it cannot be forged as each of it is encrypted by a mathematical algorithm.
Bitcoin is a peer-to-peer, Internet-based currency that makes it possible to make instant payments to anywhere in the world
Bitcoin hype all about
It cannot be said that there is only one explanation for explaining the Bitcoin hype as there are different explanation and approach such as several situations, circumstances, prevailing market factors and more reasons that contributed in the rise of the profile of Bitcoins.
A number of factors that aggregated together to cause this phenomenon.
1. Global Financial Crisis of 2008.
The Global Crisis of 2008 led people to actively search for a way to safeguard their financial prosperity from the mainstream market and Bitcoins act as a healing agent and provide the much promising secure market, many were drawn towards it and start investing in Bitcoins.
2. Social Media Factor
Due to the aggressive interaction of person over the social media make the Bitcoin hot topic over the social media and every story connected with the bitcoins start becoming the trending story over the social media platforms.
People were convinced that bitcoins are the true currencies and you can store it as a value and exchange it in the market. This led people to hold the bitcoin as an asset rather than spending it with a hope that the market value will increase and will go even higher and more people holding it lead towards the scarcity which invariably leads up the prices.
Bitcoin have any indications that people are talking about it, even celebrities like Jamie Foxx is promoting cryptocurrencies and maybe many others are planning to move towards this.