Since Bitcoin miraculous rise overnight, many people have found it very hard to accept it. Its buzz has also made it impossible for even the biggest names in the world of finance and government to ignore.
‘Bitcoin’ popped out of nowhere’ has been what critics have been saying since a nine-page paper was released, detailing the technology in 2009, by Satoshi Nakamoto, the mysterious creator of Bitcoin. Since then, many opinions and concepts have been formed about how out of nowhere, the world of finance can’t seem to get enough of Bitcoin.
It’s been labeled a fraud, scam, a thing for criminals, a bubble and a lot more and those words came from some of the prominent individuals in the world of finance. Bitcoin’s decentralized systems have basically subjected it to many forms of criticisms over the years, and I will go as far as to say it is the most criticized coin in the crypto world.
However, even though Bitcoin critics might seem to be going to an extra mile to create a fuss about the coin, it does have some genuine shortcomings that also contributes to all the criticisms surrounding it. Let’s not take anything away from Bitcoin’s awesomeness, but in light of legitimate concerns for balance, here is a few reasons why Bitcoin seems to be getting so much heat.
- Its Decentralized system
As mentioned earlier, the anonymity that Bitcoin provides makes transactions almost untraceable by law authorities, and that’s the main factor why it is being linked to criminal activities. This situation has been the core of many criticisms as Bill Harris, former CEO of the online payment system, PayPal, once labeled Bitcoin is a scam and a colossal pump-and-dump scheme, the likes of which the world has never seen, adding that Cryptocurrency is best-suited for one use and that’s Criminal activity. “Because transactions can be anonymous, law enforcement cannot easily trace who buys and sells. Its use is dominated by illegal endeavors,” he said.
Bitcoin over the years has proven to be resistant to regulation from various governmental bodies and this has fueled the rate at which criminals are adopting it for all sort of their illegal activities such as dark web drug deals, sales of compromised private information and a lot more. And as the digital coin continues to evade government scrutiny, so will the number of people who are likely to adopt it for many criminal reasons.
- Scams and Losses
Unlike traditional financial institutions which provide strong protections for their clients, Bitcoin has little or no safety for its customers. If your Bitcoins get stolen, it’s your loss only with no central power to cover you.
Bitcoin scams have been happening every now and then, with no appropriate measure being taken due to the absence of bodies which can put in place those measures. The cycle tends to repeat itself and will stay so until something is done about it, which from the look of things, is unlikely to happen anytime sooner.