Since being launched just over a decade ago, bitcoin has skyrocketed to stardom. Though the cryptocurrency has had some extremely pronounced ups and downs over the years, it has won the hearts of buyers, market analysts and general skeptics alike. Despite its current level of fame, naysayers still exist. They remain fairly certain bitcoin won’t last. Some even insist its strong suits will be its downfall.
Unlike fiat currencies, commodities and other items of perceived value, bitcoin isn’t centralized. This means it’s out of the hands of government agencies, financial institutions and other controlling entities. It’s owned by the people, and they’re in control. Critics say this will be one of the reasons the current “trend” doesn’t last. Fans swear this is the very reason it will last, perhaps even well beyond potentially unsustainable traditional economic systems.
Since it’s not under centralized control, bitcoin isn’t widely regulated. This could leave investors vulnerable to repeats of the infamous Mt. Gox incident of a few years ago. In order to become regulated, it would have to become a centralized institution. Most people who currently place their faith and finances in bitcoin affirm they’d rather take the risk, as minimal as it is, over destroying its unique inherent value by allowing it to be centralized.
One of the most unique aspects of bitcoin is its lack of a physical representative. It’s a digital-only platform. Plenty of critics say this could be its biggest drawback. Should the world’s power grid fail or an extraterrestrial EMP attack take out the internet and all manner of communications as society knows them today, bitcoin would cease to exist. In truth, this point may very well hold a good bit of water; after all, without power and internet, it would be lost. Still, the same could be said for any currency or asset. Since bank account information is stored electronically and few people carry cash these days, there’d be no way to cash in on any form of wealth following such a disaster.
Bitcoin is an exciting concept with value from a number of angles. Though some insist its unique nature makes it worthless, others maintain those qualities are exactly what gives it worth. Either way, in light of the attention it continues to draw, it’s not likely to fade away any time soon. To learn more more about this continually growing institution, follow the link provided.