As I was skimming twitter the other day, I came across an opinion (via marketwatch) piece that was critical of Bitcoin. The author pointed out some minor flaws; mainly with people's knowledge on bitcoin, especially among its fanboys/fangirls.
I recently had the opportunity to meet with a fine gentleman, Jim Clawson, who has been involved with the idea behind cryptocurrencies for decades. In 1997 he was issued a patent that deals with the fundamental aspects of blockchain tech. With the knowledge I have attained on bitcoin's subject matter, it seem's that it is my obligation to respond to some things that opinion piece mentioned.
1. What is the purpose of Bitcoin?
According to Bitcoin's White Pages, the purpose of Bitcoin is to provide peer-to-peer electronic cash or digital currency. This true digital currency would allow users to send payments directly from one party to the next with out being boggled down by the financial institutions, and their lengthly transaction time that are accompanied with high fees.
2. What is Bitcoin for?
Bitcoin can be used as what ever you would want a global currency to be used for. Since cryptocurrencies haven't been adopted by the mainstream yet, they could be viewed as more of a digital asset, such as a piece of stock that you own on your digital trading platform. A digital stock that you can either hold, sell or spend. The more that Bitcoin gets adopted, the higher the price will go. There will only be 21 million Bitcoins in the world, while there are over 7 billion people. Will Bitcoin take over as the base currency for the world? Probably not, but it is the OG of cryptocurrencies.
Bitcoin was created to be a currency, not an asset. It can be viewed as digital gold if you intend to hold it, and not use it.
3. Does it have a purpose?
Yes, Bitcoin has a purpose. Bitcoin was built to be a currency for the people, not controlled by the the central bank. A way for the unbanked to bank, and protect people from hyperinflation cause by their central banks. There is a finite number of Bitcoins that will enter circulation (currently, delving into this isn't what this article covers), so you don't need to worry about currency manipulation.
Bitcoins will also be irreversible transactions. No more worrying about receiving faulty payments.
4. Is Bitcoin Safe?
Very. To hack the blockchain network, and do what you will, a dishonest person would have to control 51% of the Bitcoin computer network to be able to hack it. 51% of 5 Exohashes.
Links provide fairly current data on the computing power (etc) of Bitcoin.
Bitcoin Network Graph
Bitcoin News
I am not arguing that Bitcoin is perfect, and I am not telling you to go spend your savings on Bitcoin. I am arguing for truely digital currency in general. A currency that derives its value based off of free market ideals: supply and demand.
In response to the rest of the opinion piece. A massive sell off in the market is scary. No one wants to lose money. People tend to run to the door very quickly if they feel that Bitcoin will plummet.
As Bitcoin and other cryptocurrencies become a more adopted means of exchange, there will be less volatility as people don't need to sell their coins to buy groceries.
The illegal side to Bitcoin is sort of problematic, but cash is almost easier to use for illegal activity.
The market cap has reached 300 billion USD, yes, big deal.
I recently had the opportunity to meet with a fine gentleman, Jim Clawson, who has been involved with the idea behind cryptocurrencies for decades. In 1997 he was issued a patent that deals with the fundamental aspects of blockchain tech. With the knowledge I have attained on bitcoin's subject matter, it seem's that it is my obligation to respond to some things that opinion piece mentioned.
1. What is the purpose of Bitcoin?
According to Bitcoin's White Pages, the purpose of Bitcoin is to provide peer-to-peer electronic cash or digital currency. This true digital currency would allow users to send payments directly from one party to the next with out being boggled down by the financial institutions, and their lengthly transaction time that are accompanied with high fees.
2. What is Bitcoin for?
Bitcoin can be used as what ever you would want a global currency to be used for. Since cryptocurrencies haven't been adopted by the mainstream yet, they could be viewed as more of a digital asset, such as a piece of stock that you own on your digital trading platform. A digital stock that you can either hold, sell or spend. The more that Bitcoin gets adopted, the higher the price will go. There will only be 21 million Bitcoins in the world, while there are over 7 billion people. Will Bitcoin take over as the base currency for the world? Probably not, but it is the OG of cryptocurrencies.
Bitcoin was created to be a currency, not an asset. It can be viewed as digital gold if you intend to hold it, and not use it.
3. Does it have a purpose?
Yes, Bitcoin has a purpose. Bitcoin was built to be a currency for the people, not controlled by the the central bank. A way for the unbanked to bank, and protect people from hyperinflation cause by their central banks. There is a finite number of Bitcoins that will enter circulation (currently, delving into this isn't what this article covers), so you don't need to worry about currency manipulation.
Bitcoins will also be irreversible transactions. No more worrying about receiving faulty payments.
4. Is Bitcoin Safe?
Very. To hack the blockchain network, and do what you will, a dishonest person would have to control 51% of the Bitcoin computer network to be able to hack it. 51% of 5 Exohashes.
Links provide fairly current data on the computing power (etc) of Bitcoin.
Bitcoin Network Graph
Bitcoin News
I am not arguing that Bitcoin is perfect, and I am not telling you to go spend your savings on Bitcoin. I am arguing for truely digital currency in general. A currency that derives its value based off of free market ideals: supply and demand.
In response to the rest of the opinion piece. A massive sell off in the market is scary. No one wants to lose money. People tend to run to the door very quickly if they feel that Bitcoin will plummet.
As Bitcoin and other cryptocurrencies become a more adopted means of exchange, there will be less volatility as people don't need to sell their coins to buy groceries.
The illegal side to Bitcoin is sort of problematic, but cash is almost easier to use for illegal activity.
The market cap has reached 300 billion USD, yes, big deal.
- 1.2 quadrillion USD is the estimated value of the derivatives market. That is over 10 times the size of the total world's Gross Domestic Product.
- 80.9 trillion USD is the total value of currencies (bank notes, coins, and money deposited in savings/checking accounts)
- 10.4 Billion USD is what the U.S. Treasury Department hold, that is one nation's gold reserves.
"Online currencies are hardly a "store of value" when they have fallen about 30% in a week."
Cryptocurrencies fluctuate in price due to profit takers that shake the market, leading to panic selling. Cryptocurrencies generally have strong support levels. When they dip, they take a quick dive only to resume their ascent. As previously stated, as cryptos as more widely accepted, there will be less reason to sell, which means less dips.
Yes, Bitcoiners in America measure their market cap/price of BTC in terms of USD. You can also find it in Euros, Pounds, Renminbi, Rubles, etc. However, all altcoins are measured in terms of Bitcoin.
Competition from all sides...
No one has ever complained about firms/organizations competing for their biz. Unless they enjoy having no choice on the quality of products they can use. There has been a surge of competition from all sides, which is a good thing. Competition is key to economies, no matter what the products or services involved. The best thing for consumers is to have firms and organizations competing for business, and I would hope, for you too.
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