Is Bitcoin The Future Of Money Or The Biggest Scam?

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Source: medium.com

Try and recollect the first time you shared the idea of investing in a bitcoin with someone. What were the reactions?

‘Oh! You should be careful as it is volatile’, ‘You should be ready to face hefty losses,’ and ‘Why don’t you explore the safer and common forms of investment rather than investing in a bitcoin.’

The chances are that the reactions were somewhat like this, right?

And if you are planning to make your first Bitcoin investment, there are huge chances that the reactions will be the same.

Source: moneycontrol.com

Are you wondering the reason behind it?

As a coin has two sides, Bitcoin has its pros and cons. But so do other forms of investments. So, why do you need to worry more about Bitcoin than the FDs and shares?

The reason behind this is that Bitcoin’s success was quick and massive. But, many things are under the table that makes the Bitcoin dealings questionable.

Bitcoins belong to the pump and dump scheme. Pump refers to the appreciation in the price security that ends up creating a speculative frenzy. On the other hand, dump refers to some of the holdings available at high artificial prices. There can be some cryptos that are nothing short of pure fraud. For example, Ernst and Young’s reports estimate that 10% of the money raised for initial coin offerings has been subject to theft.

The people who tend to lose their money are ill-informed buyers stuck in the greed spiral. The wealth is transferred from the end of ordinary families to the promoters who are present on the internet. Massive means that more than 1,500 different kinds of cryptos have a registered market value that crosses a market value of worth more than USD 300 billion.

So, let’s begin the discussion from the promoters’ end and see what benefits cryptocurrency offers to potential and experienced investors.

Source: coindesk.com
  • Preferred Means Of Payment

Bitcoins are famous. They are accepted at almost any or every place. However, some cryptocurrencies are not so common, and there are quite some chances you might not have even heard about them. The businesses which accept bitcoin payments are not so happy with it, though. The main reason behind this is that this is a volatile currency whose value is volatile, and the value can swing up to 10% or probably more in one day. So, such a payment platform is not very useful, hence.

  • Store Of Value

Bitcoins are highly volatile, and hence, they add to the undesirability. Also, the storehouses where the trading deals and exchanges happen are not secure. Also, the reliability quotient is significantly less. Also, the trustworthiness is pretty less, and the investors tend to move to ordinary banks and many brokers.

Source: napbots.com
  • No Intrinsic Value

If you are thinking about the intrinsic value of a bitcoin, you would be disappointed to know that a bitcoin does not have an intrinsic value. The deal only exists if people recognize it and plan to invest in it or buy it at a higher price. Other cryptocurrencies like Sweatcoin can be redeemed to purchase workout gear. Also, they are equivalent to online coupons. Also, you can attain flier points that serve a better purpose than complex encryptions.

However, a bitcoin has no or minimal role for most needs and uses. The regular currencies of countries are better and offer a better storage value. However, some approved coins like yuan-pay-group.net are worth a try.

The reasons why it is considered a scam are discussed as follows:

  • Criminal Activities

The bitcoin and other cryptos extract their use from blockchain technology and the internet. Not to forget that the internet is the hub for cyberattacks; hence, the quotient for criminal activity is high. Also, because crypto transactions are anonymous, tracking, buying and selling are not as easy as it seems. Illegal endeavors dominate the use, so reliability is majorly affected. Too many transactions lead to heists, followed by scams that are hard to understand, decode, and crack.

Source: medium.com
  • Slow And Expensive

There are many chances that you will see these transactions being promoted as instant and next to free. Investors tend to slip into this scam. The reality is that the transactions are not free. They are slow and probably can cause a hole in your pocket. The bitcoin transaction takes one hour to confirm the fulfillment status by reaching the second end. Also, the systems that fulfill these transactions are limited. Only five transactions in one second can be completed, and the other trades that will happen may face some issues.

  • Natural Resource Wastage

The 21st century is when the climate issues are getting accurate, and it is time to switch to environmental measures. On one side, talks are regarding promoting sustainability and the importance of judicious use of natural resources. On the other hand, promotions regarding the global service and acceptability of bitcoins are going on. The main highlight is that these coins lead to the wastage of natural resources. They are compute-intensive, which means that a considerable amount of energy is invested in creating one bitcoin. Yes, you got that right. A single bitcoin uses an alarming amount of electrical power to be generated.

If bitcoin sees continuous use, which has a bleak possibility, it will readily consume a considerable amount of electricity that is needed by the world. Also, a large amount of data will be at stake. The world will witness a massive scarcity of resources, especially feeling deprived of electricity. It is one of the essential sources important for humanity.

Hence, the future of bitcoin is not as bright as one expects it to be.

Source: pexels.com

Conclusion

Hence, with so many speculations followed by the positives and negatives, it would be better to conclude that bitcoin and other cryptocurrencies are valuable. Still, the extent of their use cannot be decoded. So, you should check the advantages and disadvantages before giving it your all and then decide whether you are in a position to see its likes or not.