By using booksticle.com you agree to our cookie policy, We and our partners operate globally and use cookies, for multiple purposes

Booksticle.com

 


Objections to Bitcoin

I Don't Understand Bitcoin

I hear this often. A lack of understanding of something doesn't mean it's a bad investment. Crypto is being called Web 3.0. Whether it's a bubble or has real value seems to be decided since over $1 trillion dollars is currently invested in it.

The only way to understand something is to spend time with it. The term Rabbithole is often heard amongst people getting into Bitcoin. From Alice in Wonderland's adventure, the more you see the more there is to see.

Hacking/Loss

Since the Creation of Bitcoin, there have been a number of hacks and loss of Bitcoin. Mt. Gox is the best example. You can also lose bitcoin if a hacker gets control of your computer, you fall for a Bitcoin scam, and they're pretty popular, for example 2-for-1 scam.

Crime

Criminals like bitcoin because it's private if you buy the Bitcoin without disclosing your name.

Bitcoin was originally used by criminals to launder money. Silk Road was an example. Cash is used for crime all the time and we don't try to ban it.

Ponzi scheme

A Ponzi scheme is where someone pays out high returns to the original investors using new investors' cash. . Bitcoin isn't one because it's decentralized and no one is running it.

Missed out/Too late

With the price hovering between $55K and $65K, it seems too late. I thought that about Apple, Google, Microsoft, Tesla also. Since Bitcoin is with around $1 trillion in market cap and gold has a $10 trillion market cap, it could easily 10x from here by taking over gold's use case as a store of value

Price is too high

You don't have to buy a whole Bitcoin, you can buy $1 of BTC or $100. 0.000017 BTC = $1.00 and 0.0017 BTC = $100 on Nov. 21, 2021. There are also ETFs that allow you to buy/sell Bitcoin for example the Grayscale Bitcoin Trust (GBTC) and you could buy 100 shares which will cost you around $5000.

Risky

Bitcoin can lose a lot of its value and lose it very fast. This is a good reason not to go "all-in" where it becomes more like a gamble, and gamblers almost always lose.


Volatility

The price of Bitcoin can go up and down very quickly but one of the arguments I've heard is it is volatile but on an upward trajectory.

Energy Usage

Elon Musk stopped taking Bitcoin because it used too much energy and is destroying the planet. There are statistics, that Bitcoin uses more power than a country. But this is the cost of having the most secure computer network ever Created. Bitcoin finds use for power that is too expensive to transfer or other low-cost power sources.

Quantum Computer

At some point, a Quantum Computer may be able to hack/attack the network, but it's expected that the network will counter this effect by raising the difficulty.

Banned by the Government

This is a real threat as the government did it with gold and could do it with Bitcoin.

   
Home | About | Videos | Websites | Jobs | FAQ | Privacy | Terms of Service | Edit | Feedback | Copyright © 2021 All Rights Reserved