Now that Bitcoin is becoming more popular, it’s important to know both the positive and negative facts about Bitcoin. Bitcoin has been touted as a great technological innovation, but Bitcoin detractors consider Bitcoin to be either an ephemeral fad or a nefarious tool capable of ruining modern economic systems. Explore bitcodeai if you want further guidelines about BTC investment.
Creation of Bitcoin Protocol
The Bitcoin protocol was created in 2009 by the pseudonymous Satoshi Nakamoto, who wanted to create a form of money that was not tied to any government. [link to bitcoin article with no negative angles] Negative Facts About Bitcoin: Pros and Cons (cont’d) The Bitcoin ecosystem consists of thousands of computers scattered throughout the world run by individuals called “miners,” since in order for Bitcoin transactions to take place they must constantly verify transactions on what is called the Bitcoin blockchain. Miners are compensated with Bitcoin in return for their computer power, which allows Bitcoin to function as a medium of exchange. Bitcoin is decentralized, with no single authority overseeing Bitcoin transactions.
Negative Facts About Bitcoin:
Pros and Cons (cont’d) The Bitcoin protocol was designed to limit its issuing of Bitcoins to 21 million units; currently, over 12 million bitcoins have been created. Because there is no central issuer of Bitcoins, they are vulnerable to cyber attacks that could wipe out an individual’s bitcoin wallet along with all their bitcoins. While Bitcoin has legitimate uses for buying goods or services online, it also attracts people who want to sell illegal items via cyberspace such as drugs or weapons, through black market websites like Silk Road. Bitcoin has little tangible value since Bitcoin can’t be used outside of cyberspace to buy anything with an actual face value. Bitcoin’s value comes only from people’s faith in Bitcoin with no commodity backing Bitcoin itself.
Bitcoin has become a speculative bubble that is primed to burst, as its increasing use for actual purchases seems unlikely given how few vendors accept Bitcoin right now, and even many who do are based on the West Coast or abroad. Negative Facts about Bitcoin
- Bitcoin is not widely used yet since there are so few vendors who accept it as a payment
- Speculation makes Bitcoins a lucrative but unstable investment; which leads to bubbles forming and soon enough popping again.
- The bitcoin protocol was designed to only allow 21 million Bitcoins to exist, but there are currently over 12 million in circulation.
- Bitcoin has little value since it cannot be redeemed for anything tangible
- Bitcoin’s value comes from the faith people have in Bitcoin itself and not a commodity that backs Bitcoin.
- Bitcoin is considered a bubble that will burst as soon as enough people lose faith in Bitcoin.
- We have all heard of Bitcoin, but what exactly is it?
Bitcoin is a type of cryptocurrency that was created in 2009 by an unknown developer named Satoshi Nakamoto. Bitcoin’s creation and transfer are completely decentralized and no single institution or government controls Bitcoin. Bitcoin has value because some people believe it does and because Bitcoin can be used to buy things electronically. Bitcoin currently has a market capitalization of nearly $9 billion.
Some people think Bitcoin will become widely accepted as money while others think Bitcoin will fall into obscurity. Many pundits make their predictions about Bitcoin-based on factors such as momentum, social hype, ease of use, security, volatility, acceptance by institutions, etc. Perhaps the best way to predict future adoption rates for Bitcoin is to look at Bitcoin’s current and past adoption rates and extrapolate into the future.
Bitcoin was the first cryptocurrency to be created, but many others have been created since Bitcoin was introduced in 2009. Bitcoin has only approximately a 50% market share of all cryptocurrencies today. Bitcoin is not even close to being “dead” because Bitcoin still dominates half of the entire cryptocurrency market by itself. Bitcoin is not considered to be dead by any reasonable definition of the word “dead”. Bitcoin is very much alive and well! Some people might consider Bitcoin dead if it did not have a single user or transaction, but that clearly isn’t true given that Bitcoin has more users and transactions than all other cryptocurrencies combined!
Many early adopters viewed Bitcoin as an experiment in progress. Bitcoin was never intended to be a permanent digital currency, but rather Bitcoin was supposed to act as a stepping stone for something better. Bitcoin would simply disappear if an alternative cryptocurrency that was actually superior replaced Bitcoin. Bitcoin is currently the best cryptocurrency at doing what it does (see section “What are Bitcoin’s Advantages?” below), so Bitcoin has no incentive to disappear despite being boring, uncool, and in need of improvement in many areas.
