Bitcoin is a new digital currency that has contributed to the popularity of the concept of cryptocurrency. Analysts and experts have different opinions about this new form of currency. Some believe that Bitcoin has the potential to replace fiat money. Its decentralized ledger system makes it very efficient and fast in the carrying out of overseas transactions. It is, for this reason, it is believed that Bitcoin and the various new cryptocurrencies in the crypto market will render legal tender redundant.
No matter what the world believes, cryptos are the new black in the global economy today. Big multinational corporations like Tesla, financial institutions like JP Morgan have already invested in cryptocurrencies to make circulation and transaction of currency faster and more efficient.
This currency has limited practical day-to-day usage. the transaction time of 10 minutes may be less compared to the duration it takes for overseas fiat money transactions, but for practical usage at places like grocery stores, the waiting time may seem too long. Also, the crypto wallet that is the basic requirement of cryptocurrency transactions is not very popular, and most shops and services all over the world do not consider cryptos as legitimate tokens for exchange as of yet.
Still, there is a demand for cryptocurrency all over the world. New traders are taking interest in this ever-expanding crypto market. Cryptocurrencies like precious commodities such as gold or silver are a natural store of value. Traders are converting the legal tender to cryptos to save their assets from adverse effects of inflation, and also to increase the value of their possessions.
We all know Bitcoin, which had an initial value as low as 0.008 USD per BTC, has now grown substantially, and the value of a single Bitcoin has crossed the 50,000 USD mark in the year 2021.
Online trading applications with integrated wallets and automated trading functions (to know more about online trading applications, you can visit by one click) have made it easy and convenient for new traders to join the global crypto trade. If you are a new trader or just inquisitive about this novel currency, you should know these controversies surrounding Bitcoin.
Controversies surrounding Bitcoin
- Bitcoin is a peer-to-peer digital currency that promises anonymity to the users. All a user requires is a crypto wallet and a private passkey corresponding to each wallet that can be used to approve any transactions. Unlike banks and other financial institutions, crypto trading does not require the user to verify their mail address or residential address. This anonymity has welcomed a plethora of illegitimate activities to rely on the Bitcoin network. Cryptos have been in much use in the modern online black market known to us as the silk road. Darknet users rely on this anonymous peer-to-peer currency for trafficking illegal drugs, contraband goods, and avail illegal service.
- There is also a lot of skepticism around this new form of currency, which stems from the fact that the form of decentralized ledger rules out the possibility of any regulatory body such as the government or banks having authority and control over the circulation of this currency. Such deregulation may or may not create a scope of abuse for this novel currency. Many countries have either expressed their reservations against cryptocurrencies. Countries like India have even banned trading in cryptocurrencies altogether (the ban was later removed and trading in crypto was legalized in India).
- The Mt Gox hack was one of the most popular controversies surrounding Bitcoin. Mt Gox was the best Bitcoin exchange service once. However, its database was hacked and a staggering sum of 850 million BTC was stolen in the year 2014. Although Mt Gox was able to recover a part of the stolen cryptos, the company itself went bankrupt due to the heavy loss it incurred due to the theft. Investors and traders had questioned the security infrastructure of Blockchain. Bitcoin suffered a loss of reputation due to this unfortunate Mt Gox hack.
Conclusion
No matter what the controversies surrounding Bitcoin may be, it is trending once again after Elon Musk proclaimed his fascination with cryptocurrency. However, a statutory warning is due for new traders – Cryptomarket is a domain of promises. However, it requires people to trade cautiously. The market trends are highly unpredictable. It is advised that you have a solid overview before you join the crypto trade.
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