In 2009 an incredible thing happened for the whole financial world. Bitcoin was created by Satoshi Nakamoto. Even though we are talking about the period when technology still had not reached its maximum potential, it was a unique innovation that completely altered the concept of money.
Bitcoin introduced the idea of anonymity, safety, and lack of government surveillance. With Bitcoin people are now able to execute transactions instantly without additional fees. At the same time, its price is gradually increasing and shows no sign of slowing down. However, elite and wealthy people reject the idea of Bitcoin. In this article, we will talk about this topic.
Bitcoin can replace businesses
Many wealthy people assume that crypto can replace traditional businesses and see this as a threat. Of course, major businesses will be endangered. However, it cannot be considered as a major problem.
One of the main drawbacks of Bitcoin is the strong fluctuations in its rate. At any moment, the quotes of the first cryptocurrency can collapse sharply. For example, on March 12-13, they fell by more than 50%, to a local minimum of $3800.
The spread of cryptocurrencies in the world is slowing down because of their controversial reputation. Digital money is often used in criminal schemes, such as money laundering, buying prohibited substances, or building financial pyramids. All this causes negative associations with bitcoin.
Complexity in use
Bitcoin appeared recently – in 2009. Initially, it was able to use only people deeply immersed in the topic. Now crypto companies create wallets and services with a simple interface, understandable even for unsophisticated users. But for most, this system remains incomprehensible and complex.
No right to make a mistake
Bitcoin is a decentralized system that does not have a single management link. Because of this, BTC owners are not immune to errors. If you lose a password from your digital wallet or lose access to it, it will be impossible to return your coins.
In most countries, Bitcoin remains in the “grey zone.” The blockchain industry is in limbo, as governments can impose a ban on the possession or transactions with digital money.
Lack of protection
Lack of regulation leaves users of cryptocurrencies without the right to judicial protection. There is no precise understanding of how the value of digital assets is determined and their legal status is lacking. Instructions on how law enforcement agencies should act are not written.
High commissions on withdrawal
Low commissions, which are one of the advantages of Bitcoin for transferring large sums, only relate to transactions within the system. To cash out the funds will have to pay a commission to counterparties, for example, exchanges or exchangers. At this stage, you can lose 2-5% or more of the transaction amount.
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