I am writing this post to give an answer to bitcoin criticizers who just criticize bitcoin and cryptocurrency without doing any study and proper research on it. So I try to counter the major points made by bitcoin criticizers.
***Disclaimer – This article is just meant for educational purpose. It is not an investment guide or advice.
Bitcoin criticizers ( Also cryptocurrencies )
Also, the main problem with them is that they don’t put effort to study it. They just keep on criticizing it by only saying that it is very volatile. They also say that bitcoin is not backed with any asset so how it can be a currency or commodity. I will answer all these and more questions in this article.
First of all bitcoin and cryptocurrencies is still very new to the world. As of now, there are only 1 % of people in the world using cryptocurrencies. So, therefore, it is not very mainstream till now but yeah it is still increasing. There is a lack of awareness in most of the people about bitcoin or blockchain technology. Many experts and professionals are still learning this concept. Majority of the people believe in conventional methods in any sector, it takes times to make people aware, familiar and understand about any new concept. Like nobody can believe the internet technology many years back but yeah we are progressing. Things change according to time and revolutions takes place. New things and inventions come to change or stop the conventions.
Points made by the criticizers
The very first point thing they say against bitcoin that it has not been an asset-backed currency. So first let’s clarify and discuss this point. But before starting I want to say that please don’t get offended if you don’t agree these are just my personal views maybe I am wrong. Since every country has a national currency which is backed by respective govt. The government usually backs its currency by gold, bonds, and reserves. The national currency is nothing but a legal tender backed by an asset and respective govt.
The belief system and how it works
So we are believing in that currency because it is backed with gold and other treasures. We believe in our govt authority, gold, banks etc. Even though we know that if everyone simultaneously goes to govt or banks for exchanging their printed money for gold it will be a very adverse situation. So what is stopping us from doing that it is “the belief system”. That’s how banks and govt play with us by creating imaginary money which is there in your hand but not actually. I can talk long on this imaginary money topic but that’s not the objective today. So what I trying to say is that our belief system gives values to anything. But also there is a reason behind anything which makes us to believe in it so it may be wrong or right.
Imagine if people from starting period didn’t believe in gold and treated it like a normal stone then there will be no such demand for gold. So the foundation or essence of demand is the human belief system. We believe in a company and buy its stock then its demand increases. So in the same way, people are started believing in bitcoin but why let me tell you that. There is a reason behind it. In true words, bitcoin and cryptocurrencies are only the tip of the iceberg the main player is blockchain technology.
So there is a reason behind bitcoin which is its technology that’s why we believe in it. Bitcoin and other crypto are based on blockchain and bitcoin is the very first product of this technology. So it is not wrong to say that bitcoin is backed by blockchain technology in which people are believing. Bitcoin is a decentralized and with openly distributed ledger currency so it has transparency, usability etc. So more and more people are now believing in this technology.
Many big people criticize bitcoin just because of its price volatility. So now let’s discuss on this as well. See first of all bitcoin is not just an investment tool machine to become rich overnight It is beyond that. Price volatility can be reduced in the future if some proper regulations will be implemented and more people start using it. Because still there are only 1% of the people are users of these digital currencies. I admit there are whales who manipulate the market sometimes it is just because of improper regulation. Consider if there is no proper rules and regulations in a country then there will be problems. So proper regulations and mass adoption can decrease its volatility.
Also, I want to say that before criticizing bitcoin and stuff just do proper research on blockchain technology. It will help to make you understand it is a futureproof technology.
Thanks for going through this article. That’s it for today if you like my opinions then do share this article in your community. Also, you can ask any query or have any feedback just put it in the comments section below.
Also, read– paying with bitcoin what you need to know.