The importance of bitcoin explained.

The cryptocurrency was created to replace the traditional modern day financial system and each passing day it’s edging closer to this goal. Although, bitcoin and cryptocurrency in general has it’s own fair share of problems and ain’t short of challenges from critics about it’s use in carrying out illegal activities and warying environmental impacts due to amount of energy consumptions by the millions of different computers across the globe that helps maintain and secure the network. Also, Government Institutions who doesn’t like the idea of losing their Stern control of the financial market to the general public and Decentralized autonomous organization (DAOs) have seen many countries and relevant Government authorities regulating operations or banning different cryptocurrency activities like trading, mining e.t.c. as we can see in the case of Nigeria’s CBN on February 5 2021, released a ruling that orders all financial institutions to stop facilitating crypto transactions and desist from transacting with entities engaging in cryptocurrency.

Despite all these hurdles, bitcoin continue to thrive and grow significantly not just in price but also adoptions by individuals, institutions and some government because of it’s fundamental basis and importance.

To fully understand the importance of bitcoin, we need to understand why it was created. The 2008 financial crisis led by an insurance company AIG which saw the collapse of a prominent investment bank Lehman brothers came close to crashing the whole world economy due to its butterfly effect if u understand what that means. Almost a thousand companies received bailout of over $600 billion that never existed before from the US government, other companies had their debt completely removed. Although these bailout could be reasonably justified, But you can’t deny the fact that someone decided to change the record of how much money was owned and owed, today most money is just a record of who owes what to whom. This is why bitcoin was created, it is the first form of money that removed the need for a central authority, it’s records are kept by everyone and not just central banks and when everyone is keeping tracks and verifying the facts of something, that means you can no longer change the ledger of transactions whenever something doesn’t add up or because it’s more convenient.

Another significant importance of bitcoin and cryptocurrency is the financial freedom and convenience of transactions it exhibit. Anyone can wake up at any moment in time and send or receive any amount of money in bitcoin from any part of the world within minutes with a very low transaction fee.

Also, over the decade bitcoin has proved to be a significant store of value, something many crypto enthusiasts often referred to as the digital gold. it preserves your wealth over time as it’s deflationary. Many hedge funds, asset management firm and pension funds have seen bitcoin as a good asset for portfolio diversification and some financial institutions are now pushing for a Bitcoin ETF which would allow investors to diversify their investments without actually owning the assets (bitcoin) themselves.

Today there are thousands of cryptocurrency but bitcoin remains the largest by market capitalization which rise to over a trillion dollars when it’s price reaches its all time highs of over $64,000 in April. I believe Bitcoin will continue to exist and steadily increase in value for many years to come.

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