Bitcoin is not backed by any physical assets such as gold or foreign exchange reserves. Then why is it valuable and why is it so popular? Let's figure it out.

Generally, Bitcoin is money. Which you can send to anyone, pay for goods and services, invest, speculate, etc. – Bitcoin has almost all the functions that ordinary money has. But it's much cooler, thanks to some of its features that make it so popular. So:

All Cryptocurrencies are created on the blockchain. Blockchain is a technology that provides decentralization and security. Cryptocurrencies are not controlled by anyone and no one can ban them – this is the essence of decentralization. All transfers are made directly without any intermediaries in the form of banks or payment systems.

For example, if you decide to send a certain amount of bitcoins to someone in Australia from Moscow, the transfer will take a few minutes, and the commission for it will be very low. Plus, you remain completely anonymous. No one can block or cancel your transfer.

If you start sending money through today's financial system, then your transfer will take much longer – several days, or even weeks. Plus, the commission for such a transfer will be much higher, because every intermediary wants to fuck something for their work, and you pay for it all. Plus, you provide your passport data, which can then fall into the hands of intruders, and finally, most likely, you will be asked questions – where, to whom and why you are sending money, and if someone does not like something, then you can simply block this transfer.

The blockchain provides a high level of security and protection against hacking. This is achieved using cryptographic methods and a distributed architecture where thousands of participants (nodes) verify and confirm transactions.

I would call it a FREE financial system.

In recent years, more and more people and organizations have accepted and recognized bitcoin. When people get acquainted with this technology, they begin to understand the coolness of this idea, and begin to understand the value of bitcoin. And today, you can buy almost everything with bitcoins – from eggs on the market to luxury cars. And if you stay in some country without money, but you have bitcoins, you can easily turn them into cash. Not in all countries, but in many. In some countries, such as North Korea, Iran, cryptocurrencies are prohibited.

The recognition of bitcoin also increases its value.

The total number of bitcoins is limited to 21 million coins. This is embedded in the program code and cannot be changed. Limited supply creates scarcity, which contributes to the growth of value as demand increases. After the last bitcoin is mined, bitcoin mining will stop. And the demand for them is constantly growing. This not only protects Bitcoin from inflation. Its price will rise due to increased demand and limited supply.

This creates enormous value, unlike ordinary money, which can be printed as much as you want, and the more they are printed, the more they depreciate.

All bitcoin transactions are recorded on the public blockchain, which makes them transparent and immutable. This means that anyone can verify any transaction, which increases trust in the system.

Bitcoin and cryptocurrencies in general are slowly conquering the world. Those countries that ban them will sooner or later lift the bans, because cryptocurrencies are the same technology as the Internet, the same level. Of course, there are settlements somewhere where there is still no Internet, but this, you know, is a huge gap from the whole world. It will be the same with the crypt – remember my words) Well, bitcoin is the very first cryptocurrency, the most popular and with a limited issue. This is something like a king in the crypto market. That's why they love him.