No individual today is unaware of Bitcoin. Bitcoin has been making the headlines for more than a year now. Bitcoin was a concept introduced by Satoshi Nakamoto in 2009. Like other cryptocurrencies, Bitcoin also uses blockchain technology. It is also the most accepted cryptocurrency. Visit the https:/bulwarkcrypto.com for more information on bitcoin trading.
There has been a lot of confusion about what blockchain technology is. Blockchain technology functions mostly like a distributed ledger. Instead of keeping the record at a single location, the data is distributed among various personal computers everywhere. Moreover, the data is shared, edited, and verified by the users themselves. The users can process transactions without any conciliators between them. It is also tough to hack information because a member plays the role of both a user and a server. Accordingly, Europe has high expectations from it. Besides this, Santander, a bank in southwestern Europe, estimated in 2015 that Bitcoin could truncate the infrastructure expenses of banks greatly. Various other sectors are benefitting from Bitcoin.
So Bitcoin can be utilised in day-to-day financial transactions. Nearly five percent of customers in Europe affirmed that they use Bitcoin as a payment method daily. Bitcoin also has some properties similar to fiat currencies. Despite this, Bitcoin does not act like fiat currencies. Normally, currencies are expected to be affected by inflation. While the value of fiat currencies is expected to decline over time, the value of Bitcoin is determined by supply and demand. It makes them a justifiable asset to purchase and sell as an investment.
Now comes the question of why the people of Europe are so interested in investing in Bitcoin. The reason is its continuously increasing value. In December 2021, the market capitalisation of Bitcoin was valued at more than 2 trillion dollars. In November 2021, the value of Bitcoin reached as high as 68 thousand dollars. Investors usually look for profit, and Bitcoin seems an attractive opportunity for them.
But not everybody is willing to know about and invest in Bitcoin. One reason might be that it is not environmentally friendly. Moreover, investment supervisors in Europe struggle with the concept and hence don’t foster Bitcoin as an investment. According to a European survey, currencies are not counted as investment instruments. Back in 2014, there were only seven European investments in Bitcoin.
Moreover, around 95% of people confirmed that they neither use nor possess Bitcoin. As for the European Central Banks, they tend to warn investors and their consumers about the volatility and risks that develop around Bitcoin. But they recognise and understand that Bitcoin has potential, and it will continue to exist in the long run.
There are certain driving factors of Bitcoin in Europe. Firstly, a financial crisis is a crucial problem in the regular sector of banking and finance. Financial irresolution affects the value of a currency negatively. But in the case of Bitcoin, there is no significant effect on its value because it is controlled worldwide. Hence, at places with inconsistent economic structures, Bitcoin is a better alternative.
Bitcoin is also the most popular cryptocurrency that is accepted almost everywhere. The increasing visibility and rising interest of investors and regulations that support Bitcoin are extending the market. The fast-growing cash value of Bitcoin and gleaming rewards for transactions are also intensifying the market value of Bitcoin. Moreover, the growing inclination of developing European countries towards Bitcoin is aiding the growth of Bitcoin in the future. Various countries of Europe are displaying their increasing interest in Bitcoin. Europe is also expected to witness a significant growth rate. European cities like Amsterdam, London, and Ljubljana in Slovenia are hotspots of Bitcoin presently.
The increasing popularity of Bitcoin is expected to greatly transform the European market in the years to come. It is plausible that developed countries will adopt Bitcoin easily because of its flexibility. This increasing popularity of Bitcoin as a transaction medium in Europe is leading the central banks to support it as well. In addition to this, the companies can also gain profit by switching prices and strengthening their assets.
Since its inception, Bitcoin has made considerable growth in Europe. The unprecedented rate of people adopting Bitcoin in Europe indicates that Bitcoin is not going anywhere and is here to stay.