It seems like every week, there’s a new op-ed in a prestigious paper calling Bitcoin a sham and warning people to avoid it or divest from it. A lot of people (particularly those operating on outdated assumptions about money and investment) have called the digital currency a flash in the pan that will soon disappear completely, along with the billions of dollars that people have invested in it and other cryptocurrencies. Here are six reasons they’re wrong.
1. Bitcoin Serves a Purpose
The thing many investment experts are missing about Bitcoin is that it fills a void. There’s a need for an online currency that circumvents the many limitations and restrictions placed on online commerce by governments and regulatory bodies. While credit cards have been the main method up to this point, the transaction fees present an obstacle and re-entering the information is tedious. Bitcoin remedies these problems.
2. Bitcoin Has a Decentralised Ledger
Bitcoin’s blockchain ledger is shared across every user’s computer, meaning there’s no single source that its records are stored on. This is a major advantage over the centralized ledger system used by traditional forms of money, as it’s much less vulnerable to being compromised or manipulated. Decentralized finance is the way of the future, and Bitcoin is leading that charge.
3. Bitcoin Is Mobile-Friendly
The Internet is increasingly shifting away from desktop computers and towards mobile devices, with more than 50% of web traffic now originating from mobile. With many Bitcoin applications and wallets built for mobile, it’s a natural fit for the mobile-first Internet.
4. Blockchain Technology Has Major Industry Applications
The blockchain system pioneered by Bitcoin is being explored by industry leaders in a number of fields and for a number of uses. Its secure protocols have the potential to facilitate financial transactions for industries including finance, politics, and entertainment. Blockchain allows smart contracts that have never been possible before, making it a game-changer for financial transactions.
5. Bitcoin Is Expanding Globally
There are areas of the world that desperately need Bitcoin. In many parts of the developing world, the banking system isn’t reliable or even fully established. Since all Bitcoin requires is an Internet connection, it can provide banking and financial services for these underserved population. It’s also being accepted by more and more financial institutions in developed countries as well.
6. Trust in Traditional Financial Institutions Is Rapidly Disappearing
The massive crisis that plagued the global financial community beginning about a decade ago had a clear culprit: Wall Street. The greed that fueled the subprime mortgage debacle hasn’t decreased, but what has is the faith people have in traditional financial institutions. Bitcoin circumvents these megabanks to allow people to transfer money themselves.
Bitcoin is the subject of intense speculation and discussion from just about anyone with an interest in finance or economics. That means there’s a ton of chatter about the original cryptocurrency coming from sources that may or may not truly understand the pioneering coinage, the complicated blockchain register it’s built on, or its potential for future growth.