Cryptocurrency ecosystem is almost a decade old, considering Bitcoin, the pioneer was launched in 2009. Over the last decade, crypto space has seen it all, the phenomenal rise, one of the longest crypto winter and price rallies taking it new highs and lows.
Despite a rollercoaster of a ride, one thing that has changed over the years is the public sentiment and general perception towards the decentralized space. Being a relatively new technology, it faced a ton of flak and criticism from all corners of the tech world, however as the crypto space made progress and refined the technology for the larger good, even the biggest critiques turned into advocates for the use of cryptocurrencies.
Having said that, there are exceptions who still think Bitcoin and other altcoins are ticking time bombs, which would fail and bust the bubble of those who are hoping to become crypto millionaires overnight.
In this article, we would analyze various arguments put forward by naysayers and deniers of the crypto evolution and try to understand how major arguments put forward by these critiques are flawed.
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The Flawed arguments against Bitcoin and Cryptocurrencies
Constructive criticism is good, but living in complete denial is harmful and that has been the case for most of the crypto evolution denier, where they cherry-pick data and then form their complete opinion on that, claiming to be the experts at the subject. Let us analyze the most common arguments put forward by these critiques and find out what is wrong with it.
“Cryptocurrencies are not backed by any real-world entity, thus its volatile prices are a clear indication of a bubble”
It would have been a valid argument 3 years ago, but what people need to understand is, the value of any entity is mainly measured by its acceptance rather than the store of value that it is based on. I mean look at fiat currencies which are backed by a real-world entity like gold or petroleum, and we have amassed a debt of around $22 trillion, so the argument is not just flawed but totally imbalanced
Similarly, any new technology goes through a cycle of volatility changes, be it the dot com boom in the late 90s where the Amazon touched new stock highs in the beginning and then fell almost by 90% in value. Thus, one must take account of all the factors rather than pinpointing one aspect while completely neglecting the other parts.
The volatility factor has been reduced to a great extent since the last bear market has taken over. The volatility factor has been reduced so significantly that even the traditional investors of wall-street (who were amongst the biggest critiques of the crypto ecosystem) have come around to either invest in cryptocurrencies or offer crypto-based services.
“Bitcoin is neither a great medium of exchange or a store of value”
Another outdated argument put forward by no-coiners and naysayers, trying to suggest that Bitcoin can neither be used as a medium of exchange or store of value. Well, these critiques are neither up-to-date with the current news nor do they verify something before saying it. Bitcoin’s use as a medium of exchange has grown exponentially. The number of vendors accepting Bitcoin is not just limited to a few online marketplaces. People are buying Beer and real-estate with the same Bitcoin.
These are not just experimented pilot projects but regular trades, where service providers are accepting Bitcoin for a long range of services. Apart from Bitcoin, Bitcoin cash is another major crypto being widely accepted.
Coming to the store of value argument, the reference point is 2017 when the prices were as high as $20k. what the no-coiners need to understand is, Bitcoin is still one of the best entity to have as a store of value, as its prices started from zero and are currently rallying around the $4k mark.
Bearish trends are almost over and many predict that the next bull run would shoot the prices to new highs again. Some also believe that the prices would go so high that it would be impossible for the next generation to buy a whole Bitcoin.
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Any new technology undergoes a cycle of ups & downs before maturing into a widely recognized phenomenon. Earlier people did not have the internet so, their opinion no matter how flawed, it was limited to a certain group of people. However, in this day and age of click-bait internet ecosystem, even the most flawed arguments take the center stage. Those who deny the Bitcoin rise have either missed out their chance of becoming a millionaire early in life or just don’t want to hear the arguments of another side.
Bitcoin has not only climbed the ladders of popularity but it has also proven to be a lifesaver for troubled nations like Venezuela, which was on the brink of poverty and civil war amid the disastrous economy. Bitcoin use has not only contained the issue but made sure that the Satoshi Bitcoin vision is fulfilled.
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