There was some tries to create digital currency, but the Bitcoin is first successful cryptocurrency launched in 2009. The rapid market expansion, explosion in trading volume and price of the Bitcoin has given cause to Bitcoin opposer to consider if Bitcoin is a bubble. Here are 5 reason that are proving that Bitcoin is not a bubble.
Blockchain technology is the answer to the question why is Bitcoin so special. Every single transaction is recorded in the blockchain system and linked to the previous transaction and next transaction so it is free from manipulation and hacking. It is also visible to all users.
2) Robust cryptographic system
All of the transaction using Bitcoin that are once recorded in blockchain are irreversible and permanent. It is because the entire system is based on cryptographic principles - underpinned by mathematical proof, system is considered to the hackers attack and others kind of manipulation. Although there were a handful instances in which Bitcoin exchange have been hacked, overall the cryptocurrency has became unable to hack.
3) Decentralised and Distributed
The key factor of any cryptocurrency is decentralization. This means that no institution or government has control of the currency, there is no third party involved in transaction. But, there are some question that being raised that governments may step in to regulate cryptocurrency trading.
4) Volumes trending upward consistently
Trading volumes have exploded and the main reason of that is the number of users within the network. If number of users is rising that means that less and less people are believing that Bitcoin is a bubble. The opposer of the Bitcoin have argued for the years that it will fail and disappear, but the true is next, the larger Bitcoin become the less likely it is to fail.
5) Expansion of the sector
The key expansion of the cryptocurrencies sector could be observed from the number of cryptocurrencies these days. There have more than 700 digital currencies been traded every day. But, there are still many people than think the cryptocurrency is not a \"real thing\".