Sorry, I’m not buying it. I’m not a bitcoin maniac.
People hype bitcoin as the future of money. They point out:
1. Bitcoin is anonymous
2. Bitcoin is secure
3. Bitcoin is not controlled by any government
Sounds good but is completely wrong.
Let’s look at each of these reasons behind bitcoin.
Bitcoin is anonymous. Can be but governments around the world are saying that it can’t be. Europe in particular is requiring that you have to reveal your identity to own bitcoin.
Bitcoin is secure. Actually there are have been billions of dollars of thefts and scams. The dollar is more secure and it is no prize!
Bitcoin is not controlled by any government. True but not for long. We are seeing governments around the world crack down on bitcoin. Some countries are banning it entirely and others are forcing massive changes.
Transactions in bitcoin are shrinking as it becomes so cumbersome to use and governments crack down.
Here is one of the main reasons why bitcoin will not replace government issues currency. It’s not government issue currency!
Governments will not allow any competition to their monopoly in money. Sure, they will allow bitcoin as long as it is small and unimportant. But, as soon as it looks like it could compete with government money, they will shut it down. We are seeing that already and bitcoin is incredibly unimportant in the world’s economy right now.
Bitcoin can be good to trade because of the incredible volatility but that is about it.
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