The number one cryptocurrency Bitcoin (BTC) has been existing in the midst of so many enemies, these are not just the altcoins which are competing with the digital asset, the press, financial experts and the markets are also part in pulling bitcoin down. This is because bitcoin is the flagship of the crypto world, that has maintained its leadership position since inception.
So many financial experts and crypto prophets have predicted that bitcoin would die but it still surviving, some said it is just a bubble that would soon burst. Several economists and financial experts have brought up different arguments against bitcoin, and all are pointing out that bitcoin will never survive.
Bitcoin has been called a ‘Ponzi scheme’ this refers to a type of business that lures investors, where newer investors’ money is used to pay the old investors. Bitcoin operating system does not allow scheming with investors funds, it is a decentralized system, no central authority has the power to remove funds from wallets.
Even if bitcoin is a bubble, it seems strong enough not to have busted. Though Bitcoin has suffered so many drops in price and value, it is still a performing digital asset. After each drop in price, bitcoin had always recovered about 70 to 80 percent of losing.
According to a researcher, Andreas Antonopoulos, the real bubble is in the traditional markets like stock and bonds.
“Bitcoin grows by bubbles. Bitcoin’s bubble is also the least dangerous, least systemic, and yet most talked about a bubble. The bigger and scarier bubbles are in stocks, bonds, national debt, real estate, student loans, healthcare, etc. All of these bubbles are driven by anemic productivity growth in the context of massive stimulus and negative interest rates; money is cheap and there are no good investments that are not already inflated into bubbles,” Antonopoulos said.
Bitcoin is the vehicle that delivered freedom to the financial industry and society. It brought transformation and speed in funds transfer and all other aspects of payment. As an emerging market digital currencies are bound to face so many criticisms. Some of the areas bitcoin has been criticized are in the method and application.
The speed at which transactions are processed, it takes just a few minutes to transfer millions of dollars and this can be a fast channel for hacking. Bitcoin has also been criticized for the amount of energy consumed to create the digital asset. Bitcoin mining consumes high electricity, therefore very expensive to maintain.
Despite all these errors pointed out about bitcoin, it is still surviving the harsh weather and unfavorable environment. Bitcoin is the first product of blockchain technology, and it grows as blockchain grows.