What is the use of Bitcoin?

Bitcoin is a cryptocurrency whose main uses include payment means, store of value, speculative asset, decentralized network, anonymity and privacy, smart contracts, safe-haven assets and decentralized finance.

Role of Bitcoin

Bitcoin is a cryptocurrency that has the following main uses:

1. Means of payment

Bitcoin acts as an electronic payment method that allows people to make payments online or Transactions are conducted in brick-and-mortar stores without the use of traditional currencies or financial intermediaries. It makes cross-border payments quick and easy without paying high fees.

2. Store of Value

Bitcoin has a limited supply of only 21 million coins. This scarcity gives it a store-of-value function similar to gold. Over time, it is believed that the value of Bitcoin will increase as demand increases.

3. Speculative Assets

The Bitcoin market is highly volatile, which makes it a popular speculative asset. Traders can buy and sell Bitcoin to earn profits, but this investment also comes with higher risks.

4. Decentralized Network

Bitcoin is built on blockchain technology, which is a distributed ledger that records all transactions. This decentralized network eliminates dependence on central authorities and improves the security of transactions.

5. Anonymity and Privacy

While Bitcoin transactions can be viewed publicly on the blockchain, they are not directly tied to an individual’s identity. This provides users with more anonymity and privacy than traditional financial transactions.

6. Smart Contracts

The Bitcoin network can use smart contracts, which are computer programs stored on the blockchain that automatically execute when certain conditions are met. This can be used to create customized financial protocols, supply chain management systems and other applications.

7. Safe-haven assets

Some investors believe that Bitcoin can serve as a safe-haven asset during times of economic uncertainty. When traditional markets experience volatility, the price of Bitcoin can rise.

8. Decentralized Finance (DeFi)

Bitcoin supports the DeFi ecosystem, providing various financial services such as lending, saving, and trading without using traditional banks or financial institutions.

Bitcoin Price Gains Strong

As of 11:00 AM on July 16, 2024, Bitcoin (BTC) is quoted at $64,683. The trading volume in the past 24 hours reached $363 billion and the price increased by 3.46%.

Rising Factors

Recent gains have been attributed to increased interest from institutional investors, an improving regulatory environment, and global economic uncertainty.

Future Outlook

Analysts expect Bitcoin prices to continue rising, with a long-term target of $100,000. However, there may be pullbacks and volatility in the short term.

Action Recommendations

• For long-term investors: Hold Bitcoin as it is expected to continue rising in the long term.
• For short-term traders: Monitor the market closely and look for buying opportunities in the event of a pullback.

Short Term Forecast

In the short term, Bitcoin price is likely to fluctuate within a range of $60,000 to $70,000.

Indicator

• Price: 64,683 USD
• 24 hour trading volume: 363 billion USD
• Circulation market capitalization: 12.76 trillion USD
• Float volume: 19 700,000 Bitcoins
• Maximum supply: 21 million Bitcoins

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