You can earn Bitcoins when you get them as payment in exchange of goods and services. Alternately, you can get Bitcoins if you mine them or exchange them against traditional currencies like the Euro, GBO, Japanese Yen or USD or against other crypto coins like Ethereum. Because of the notorious volatility in prices that is commonly associated with Bitcoins, there is a lot of speculative trading around it. People all over the globe having faith in blockchain network are buying Bitcoins because they perceive this as a long-term investment. Besides, the bots like Bitcoin Bank are also contributing to the rise in Bitcoin trade. Both large and small businesses, whether it is Microsoft Corporation or a neighborhood diner, are accepting Bitcoins in exchange for services provided. Here are the top 4 fiat currencies for trading Bitcoins:
- U.S. Dollar: The USD is one of the leading traditional fiat currencies that are used to trade Bitcoins and holds about 25% of the total market share. It had been the top-ranking fiat currency till 2012 when the Chinese participation gained momentum and the Yuan dislodged it from its position. Eventually however, the Japanese Yen moved past both the Yuan and USD to grab the top spot. There have been many solid reasons for the USD becoming a top currency for trading BTC. Since it is fast to embrace new technologies, the already large customer base expanded faster as blockchain network gained acceptance in the country. At a time when many of the other countries had not yet woken up to the crypto reality, many residents in those nations had begun trading and making investments in BTC using the popular USD. Even in India, people who help BTC directly or via intermediaries had actually bought them by converting the rupee into USD.
- Japanese Yen: This traditional fiat currency accounts for approximately 60% of the entire market share. It has commanded a leading position in recent years and this has been further made possible because of many bans imposed by the Chinese authorities on exchanges based in their country. This automatically meant that many of the crypto trading activities shifted from China to Hong Kong and Japan. Moreover, Japanese authorities have also been one of the first to accommodate digital assets. This country was proactive in implementing crypto regulations and has undertaken measures to make Bitcoin trades seamless.
- Korean won: Since February 2018, South Korea shot up to the third position on the list of top fiat currencies to trade Bitcoins. The contribution of KRW in the world share kept growing since January 2018 when Korean regulators imposed bans on crypto traders to stop them from making use of anonymous bank accounts. However, the currency finance minister has expressed intent not to suppress or ban cryptos. This indicates that this currency will possibly witness far more legitimate Bitcoin transactions in the near future. The market is also hopeful that more crypto-friendly regulations will make their entry into Bitcoin trades and investments in Korea.
- Euro: Euro is the common European currency that holds one of the top positions in the list of most popular fiat currencies to trade with BTC. It accounts for 5.5% of the total market share. While the currency itself may be embroiled in controversies concerning its own survival it continues to be popular for Bitcoin trades. For instance, Berlin is still the Bitcoin capital while Belgium and The Netherlands have witnessed a rise in Bitcoin ATMs recently.