In this article, I am proposing my opinion on the dark side of bitcoin.
Since may, Bitcoin’s USD value is soaring up, reaching new records. As a result, many people wondered what is this magic money that out of the blue doubled its value?!
It is important to understand what is the value of bitcoin really means and why it doubled its price
What made the crypto concurrency market so optimistic since may 2017?
- WannaCry Malware
- Japan regulated the currency
You need to know
bitcoin is not a stock
Many people confuse the bitcoin concept with the stock market concept. However, life is not a bed of roses as it seems to this investment. once you are in, It is whether you lose your money or your private key or your travel to Japan in order to spend some bitcoins on sushi.
you cannot convert bitcoin to any regular currency in a formal way
Otherwise, people will arbitrage. such exploit does not exist in the monetary system of the 21st century. However, there is an option to sell the bitcoins on high demand market such as South Korea. though such market applies heavy regulations and interest in WON conversion to USD.
it is stupid to think of capitalizing on the arbitrage at the 21st century
The arbitrage is against the Law of one price, Otherwise, The USD value will reach historic peaks resulting in instability of the economic efficiency.
people speculate the Bitcoin value
The bitcoin is not built on a gold value or on people giving a real effort to raise its value. The bitcoin value is speculated, raised by the user’s interest in the market which is driven by the press. Most of those who joined bitcoin, do it for the purpose of buying and selling the currency rather than to buy something.
Peaks in the market refer to unstable market
The Bitcoin market and the crypto concurrency market is not stable due to these peaks. Bitcoin had two peaks before. a minor one in 2011 and the other at 2013, after both peaks, there was a dramatic crash.
Bitcoin mining is not built on assets revenues or production as used in the real economy, it is some geeks pool hosting machines which run an endless hash of random strings. As you can see, it is no dignity way to gain any value.
Bitcoin is an efficient way to move cash from one country to another bypassing all the regulations
It may sound like a conspiracy theory, However still true, I will rephrase that by the quiz, how can you drain the money out of the Iranian citizen…followed by a LOL.
No Trust needed is an illusion
Though the concurrency is based on the blockchain, transactions can be used twice in practical use cases where you are not ready to wait hours in order to confirm the validity of the transaction.
Bitcoin is more a research concept and is no closer to the mainstream acceptance. Moreover, since it is a decentralized system, the user is on his own in this field. Add to that, Bitcoin is cannot handle a large scale of users. However, this has been solved with bitcoin cash.