What are the biggest arguments against Bitcoin?

What are the biggest arguments against Bitcoin?

Bitcoin is now about 13 years old, yet there are still many arguments against it. Learn about the biggest arguments against Bitcoin below.

Bitcoin attracts negative sentiment and criticism from some quarters. Most of these criticisms are due to the basic characteristics of bitcoin as a cryptocurrency, while others stem from pure misunderstanding or lack thereof about bitcoin. This article looks at some of the biggest arguments against Bitcoin.

Before we set out the arguments against Bitcoin, it is necessary to emphasize that Bitcoin is real and widely popular. Millions of people and institutional users use Bitcoin today for various reasons, including as an investment asset. Since Bitcoin is a valuable digital asset, many investors are now into cryptocurrency trading. You can learn about Bitcoin trading and even become a trader through trading platforms like Bit codes

Bitcoin is a bubble

One of the biggest arguments against Bitcoin is that it is a bubble. Those who take this view view Bitcoin as a bubble that explodes at any time, like the dot.com bubble. The controversy arises from the volatility of Bitcoin. Bitcoin has high price volatility which makes it an unpredictable and risky investment. However, this argument is refutable.

Although Bitcoin is highly volatile, it is not a bubble because its price is unlikely to drop to zero. If the price of Bitcoin drops to zero making it worthless, many people will flee from it, leading to its eventual death. However, this is almost impossible, considering that the price of Bitcoin never reached zero.

Moreover, Bitcoin is not a bubble because a very complex technology known as blockchain supports it. Blockchain technology is a decentralized and globally distributed digital ledger that ensures greater security, privacy and practicality in transactions. The technology ensures the security of Bitcoin. Intermediaries such as banks cannot interfere with the system.

Bitcoin encourages criminal activities

Another common argument against Bitcoin is that it encourages criminal activities such as drug smuggling. Those who support this argument note that criminals and criminal networks have used bitcoin to hide their tracks from law enforcement. Although this is true, this does not mean that Bitcoin encourages such illegal activities.

Bitcoin provides anonymity, privacy and security for users. Some entities with criminal intent may take advantage of this to use Bitcoin instead of the traditional financial system to avoid being captured. But that was never the goal of Bitcoin. Bitcoin came up as an alternative to traditional centralized systems with problems in terms of interference by those who control.

Bitcoin came to disrupt financial systems

Some critics also argue that Bitcoin came to disrupt the existing financial system and financial architecture. Governments stuck to this argument in the first place and tried to get rid of Bitcoin and other cryptocurrencies. The basic foundation of the idea is that Bitcoin is a decentralized system that removes central control by governments. They also argue that Bitcoin eliminates intermediaries such as banks and middlemen in financial transactions.

It is true that Bitcoin, just like all other cryptocurrencies, is challenging the traditional central financial system. But it would be unfair to say that Bitcoin came to disrupt the central system because even today, a centralized financial system that includes central banks, commercial banks and other intermediaries coexist.

While Bitcoin’s popularity will continue to grow, those who argue that it threatens the existing centralized system are doing so because they are part of that system. Governments will try to argue this way because bitcoin eliminates the role of central banks. Commercial banks and financial institutions will say so because bitcoin eliminates its functionality. Therefore, they do not benefit from charging customers high fees.

Final thought

There are many arguments against Bitcoin. As in the case of the three discussed above, it lacks strong foundations.

photo by Gerd Altman From Pixabay

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