Bitcoin, the largest cryptocurrency in the world, is centrally controlled by its users. No governing body sets rules and regulations. It is even out of the government’s reach, which makes it a place of financial independence for investors who remain worried about the fanatic laws that government can suddenly set.
In the initial start of 2017, the value of Bitcoin was $1000. There were speculations and criticism about Bitcoin back then and even now when it has almost multiplied its value by 20 times. When Bitcoin came early this year, the transaction fees were charged $32 per transaction, making it almost impossible for the investors. There were even doubts about the convergence of bitcoin to traditional fiat currencies.
It is seen that a majority of bitcoin community refused to increase their block size wherein the transactions are packed for approval. Instead, they chose Lightning, with the help of which there would be reduced critical transactions which will inevitably save the transaction fees.
The anonymous founder of Bitcoin Satoshi Nakamoto thought bitcoin to be more secured. But the current scenario doesn’t seem so. It is seen that the bitcoin wallets used for storing bitcoin are becoming prey to the hackers. Although, storing money in bitcoin wallet secures user’s privacy, but in a recent event when 4700 bitcoins were stolen from NiceHash Marketplace, it has raised questions about bitcoin’s security standards. People feel that saving money in the central bank is safer than in the wallet.
It is assumed that Bitcoin’s popularity will improvise new scopes of security. Cryptocurrency has a whopping amount of $630 billion, of which Bitcoin alone holds $270 billion. The other cryptocurrencies have bigger block size and are seamlessly scalable.
But even after such high risk, investors are seen glued to using bitcoin wallet. This is because cryptocurrency is independent and functions in the direction of the users, unlike traditional banks where the government can change any law anytime. In cryptocurrency transactions are transparent, but the user’s information is kept private. In traditional banks, the government keeps an eye on every transaction that takes place, but in the digital currency market, is out of the reach of the law. Therefore, even after such volatility in the financial graph, bitcoin users still invest in bitcoin so the save their money securely from government reach.