Why are people against Bitcoin? (2024)

Why are people against Bitcoin?

As it grew in popularity, Bitcoin became cumbersome, slow, and expensive to use. It takes about 10 minutes to validate most transactions using the cryptocurrency and the transaction fee has been at a median of about $20 this year. Bitcoin's unstable value has also made it an unviable medium of exchange.

Absence of a Use Case

This, again, is a common argument made by detractors that see little to no value in crypto projects such as Bitcoin or Ethereum. Essentially, the argument is that cryptocurrencies such as Bitcoin aren't being used money because they are too volatile and that their value is purely speculative.

Bitcoins Are Not Widely Accepted

Bitcoins are still only accepted by a very small group of online merchants. This makes it unfeasible to completely rely on Bitcoins as a currency. There is also a possibility that governments might force merchants to not use Bitcoins to ensure that users' transactions can be tracked.

Bitcoin Is Used in Illicit Activities

Besides this, the algorithmic trust engendered by Bitcoin's network obviates the need for trusted contacts at either end of an illegal transaction.

The disadvantages of cryptocurrencies include their price volatility, high energy consumption for mining activities, and use in criminal activities.

As it grew in popularity, Bitcoin became cumbersome, slow, and expensive to use. It takes about 10 minutes to validate most transactions using the cryptocurrency and the transaction fee has been at a median of about $20 this year. Bitcoin's unstable value has also made it an unviable medium of exchange.

Products, services, wages, and salaries are not valued in bitcoin but in fiat currency. Bitcoin must be converted to a government-backed currency to be used, even in countries where it is recognized as legal tender. The argument here is that because Bitcoin is convertible, it doesn't have any underlying value.

Since Bitcoin does not have any particular central authority, the government could just require every node that operates in the U.S. to have a license, effectively rendering the use of Bitcoin illegal since presumably most individuals would be incapable of going through such an arduous process.

It is mostly seen as an investment and has been described by many scholars as an economic bubble. As bitcoin is pseudonymous, its use by criminals has attracted the attention of regulators, leading to its ban by several countries as of 2021.

Design Flaw 1.

Around half the Bitcoins that were ever designed have been created already. The money supply will increase by another 66% between now and 2025, but by then the rate of creation of new Bitcoins will have slowed to a negligible amount, essentially making it a fixed money supply by 2025.

Why Bitcoin is not a good investment?

Bitcoin is a risky investment with high volatility, and generally should be considered only if you have a high risk tolerance, are in a strong financial position already and can afford to lose some or all of your investment.

Cryptocurrency is most often used as an investment: in 2023, 7% of all US adults bought or held crypto as an investment, 1% used it to pay for something, and another 1% used it to send money to friends or family.

Criminal Forfeiture

A warrant is not the only way for a law enforcement agency to seize bitcoin held by another individual or entity. Bitcoin can also be taken by the government through a process called forfeiture. Forfeiture is the permanent loss of that bitcoin by way of court order or judgment.

Store of value

Earning the title of 'digital gold', bitcoin is now accepted as a store of value by many sophisticated investors. As you're probably aware, a store of value is a commodity, asset, or currency that keeps its value over a long period of time — a trait that's especially important during inflationary times.

Key takeaways. Critics say bitcoin doesn't work as a currency, citing concerns like volatility, energy usage, and use in illegal activity. Supporters argue that it's too early to make some of these claims, and that innovation is already fixing many of those concerns.

We already know where the skepticism comes from — it is the result of a top-down view of crypto, where the most standout thing seen on the “top” is a plethora of Ponzi schemes, scams, sh*tcoins, NFT rug-pulls, and FTX-like events (while there plenty of very legitimate DeFi and web3 applications, the scams are those ...

Nobody owns the Bitcoin network much like no one owns the technology behind email. Bitcoin is controlled by all Bitcoin users around the world. While developers are improving the software, they can't force a change in the Bitcoin protocol because all users are free to choose what software and version they use.

It is possible, but unlikely, for Bitcoin to go to zero. Like any other asset or investment, the value of Bitcoin is subject to market forces. It can be affected by various factors, including supply and demand, investor sentiment, and regulatory actions.

Can you lose real money on Bitcoin?

Cryptocurrencies, like Bitcoin and Ethereum, are different from stocks and real money. Crypto is not regulated like stocks or insured like real money in banks. Crypto's high risks can offer big rewards or huge losses.

1 BTC is held by a little over 1 million wallets at the time of writing. The one million milestone was first reached in May 2023.

Yes, you can convert cryptocurrency to cash (like USD or INR) using various methods. Popular options include cryptocurrency exchanges, peer-to-peer marketplaces, and Bitcoin ATMs. Always choose a reputable platform and be aware of potential fees and withdrawal times when converting your crypto holdings to cash.

Under really extreme circ*mstances, there are few scenarios that could spell the end of Bitcoin as we know it. For instance, a massive global power outage shutting down all communications and the internet around the globe could prevent nodes in the network from contacting each other, causing the system to fail.

The dizzying rise of bitcoin and other cryptocurrencies has created new challenges for governments and central banks. Increasing popularity and high levels of market volatility have raised the stakes of the digital asset experiment.