Since the day of its commencement, Bitcoin has been a matter of controversy for many.
Some belief it to be the future of the financial industry, while there are others who do not even consider them a commodity. So, what is the reason for this hype?
If there has been a recent flurry of criticism, then what is it that is a matter of concern?
In this excerpt below, you will learn everything there is to know about Bitcoin.
Starting from where it started, why it suddenly had this surge of fame, and what are all the criticism and backlashes it is getting from experts.
Should you go on investing even after that?
Whether you believe in Cryptocurrencies or not, there is no doubt that it is one of the major investments known to mankind currently. So, if you are keen on investing in Bitcoin, we would suggest that after utter consideration and carefulness, you should go for it. You can begin your journey with immediate edge for a smooth transition.
What Is Bitcoin
Bitcoin was the first one that began this whole Cryptocurrency. The famous unknown under the pseudo name of Satoshi Nakamoto coined the first whitepaper of Bitcoin. His or her identity is still not in the papers yet.
When it first commenced, the whole matter was taken as a facade or joke. Needless to say that many didn’t believe in it, but now the picture looks different.
Bitcoin is not the only Cryptocurrency in the market, and there are more altcoins (Cryptocurrencies that are not Bitcoin) that are coming into the picture every day.
Why Is Bitcoin Liked
Here are some of the key reasons why Bitcoin is liked by everyone.
1. It Is Decentralized
The Decentralized characteristics of Bitcoin ensure that the trading is more flexible. You do not have to wait for anyone’s approval to trade or when you wish to withdraw your profit.
Plus, you can also continue business much more easily with the help of this feature. Decentralized domains do not differentiate between the average and wealthy investors. Thus it gives everyone the platform to trade.
2. The Safety
Bitcoin work with the mechanism of Blockchain. This is where all the information is stored in the blocks, and they cannot be tampered with. Once one trading information is registered in the block, it is there for a lifetime. Plus, anyone who is trading can access that information.
Thus, you will be able to get full information about whom you are trading with.
3. The Limited Numbers
Yes, the number of Bitcoin is limited. This gives traders a much higher chance to brag about a profit than any other Cryptocurrency. There will not be more Bitcoins produced. So, once the demand increase, so will the price.
4. It Is The FOMO
Bitcoin has become more of a religion than a means of profit. There are many experts who believe that people are investing in Bitcoin solely for the purpose of not feeling left out.
As someone who is dipping their toes in Cryptocurrency, investing in Bitcoin is a must-have.
What The Main Criticisms & Doubts
There are always two sides to a coin, and this digital coin is no different than the rest. Here are some of the reasons why Bitcoin is highly criticized
1. Its Volatility Is Skyrocketing
No one can deny that Bitcoin is a very volatile investment. Although, some would call this volatility a blessing in disguise, as you can buy a coin when the price falls.
However, many experts believe that with such fluctuating characteristics, one can never enjoy the profit if they do not sell the coin immediately when the price skyrockets and you withdraw the fiat currency.
2. It Is Doubtful Commodity
According to some experts, it is neither a currency nor a commodity. Mostly because it doesn’t have any face in the physical form, it is all digital, and one day it might lose all its importance and just cease to exist.
According to many, investors are just investing in a formula just because of the growing hype.
3. Unregulated By Government
Being decentralized also has its drawback. One of the biggest ones would be the lack of governance by any central body. This does increase the number of cyber crimes in the domain, and once you lose all your assets, you do not have any place to represent a case for compensation.
4. The Matter Of Legality
The matter of legality in Bitcoin is still very questionable. Although it is not exactly legal in many countries, it is also not openly approved by the central bank as a form of exchange.
Neither has it been acknowledged by The World Trade Organization as a tangible currency of trade.
5. Ilegal Activities
This is one of the most dangerous consequences of being decentralized. This means that Bitcoin can be used for several illegal activities due to the lack of government regulation.
Criminals can use it as a form of drug trafficking exchange platform or for many other criminal activities.