After hundreds of years under the Fiat money system, people always demanded something stable, censorship-resistant and incredible store of value. It cannot be achieved with the traditional model of making payments. They also had to invest their money into traditional ventures only, which the government also regulated. So, people will not be so satisfied with the traditional system of making investments and trading back in time to the Trading System. But, as soon as they discovered an incredible opportunity, they started to put their money into it. It has let people put a lot of bitcoin investment, leading to its popularity and colossal valuation. Moreover, the popularity of bitcoin is because of people’s mindset toward it. It is good than the traditional modes of investment and trading.
Today, bitcoin has risen as one of the best options for investing. The traditional markets can never compete with the incredible nature of bitcoin because it fluctuates, provides stability, and is an excellent store of value for everyone. You might never have found these features in the traditional market of investments like the stock market. Even the real estate market is not as incredible as the crypto coins like bitcoin. So, none of the traditional markets has ever matched the excellence of cryptocurrencies, making it a suitable investment opportunity for anyone looking forward to the future. If you want to secure investment for the future, perhaps going with bitcoin is the best option to explore. But, to do so, you should know about the purpose of bitcoin in the first place.
The great purpose!
The valuation of bitcoin in the market keeps on fluctuating all the time, and it happens because of the demand and supply mechanisms. But, even before that, it was Satoshi Nakamoto who looked after the whole world and decided to help me to get out of the recession. The economy has crashed, and there was an economic crisis back in 2008. People were not sure if they should invest their money into something or not because everything was crashing. In such a downgrade situation, Satoshi Nakamoto decided to create his form of money, the bitcoin. He released a white paper in 2008 saying that it would be a peer-to-peer transaction medium, and the valuation would be done according to the market analysis. This way, people started to trust the factor of developing a decentralised medium of making transactions.
However, soon, bitcoin started to deviate from its essential purpose. Earlier, when people were making transactions in bitcoins, now, they make transactions to make money out of it. They purchase it at a lower value and sell it at a higher want to make money. It was never the purpose of creating bitcoin. However, the primary purpose of something else is nowadays not being appropriately fulfilled, and people used to earn benefits only. The primary purpose was to offer people a transactional medium which would be not controlled by the government and that people would have control of their wealth. But, people used it otherwise and started to develop profitable mechanisms for bitcoin. It is now becoming the reason for bitcoin becoming highly speculative and not even completely capable of being used as a money system.
What led to the deviation?
Along with understanding the primary purpose of bitcoin, some of us are also curious to know why bitcoin started to deviate. Well, the primary reason can never be specified. However, there are many of them, which led to the deviation of purpose for the bitcoin from its basic one. First, people started to notice that bitcoin has been increasing in value over the years. It made money minded. It let the people believe that bitcoin will have a more extensive valuation in the market, but it is nothing else but their actions which lead to happen.
If anyone would not accept bitcoin as a medium of making trades, perhaps it would have remained at its primary purpose only. However, people did not recognise the incredible nature of bitcoin and, therefore, started speculating about it. Due to the speculations, the valuation of bitcoin increased, and plenty of others entered the market. Looking at bitcoin, other companies also started to launch their cryptocurrency venture, bringing about competition in the market. Therefore, the investors of the bitcoin started more speculations which led to a further increase in its value and therefore, bitcoin completely deviated from its essential purpose.