Steem Crypto Challenge Month #5: i love Bitcoin.
This is my second part of i love Bitcoin contest organized by @steemitblog. In this part, i will briefly discuss about scope of bitcoin investment and different socioeconomic, legal, and environmentasl etc issues related to Bitcoin. Let's go than
Where to spend Bitcoin?
if you are planning to invest in Bitcoin , risk benefit analysis lies at the heart of investment plan. One thing I would suggest is to , only invest as much as you can afford to lose. It does not mean that you are spending to lose but it is just a wise plan .
Now if you own Bitcoin and you want to spend it like other flat currencies , you can do so but not everywhere. Companies like MICROSOFT and EXPEDIA are accepting bitcoins. Japanese retailers can accept bitcoins and also to emphasize it's popularity, it is worth mentioning that an Iceland based female singer Bjerk is also accepting Bitcoin for her albums. Acceptability and populeity of Bitcoin had direct proportional relationship which means as populirty of bitcoins increases, acceptability among masses will also increase.
Issues concerning Bitcoin.
There are certain doubts in minds of people due to which they restrain from investing in crypro.
i would like to adress some of them as
Volatile Nature
Bitcoin has no intrinsic value and price is almost entirely speculative. Volatility of Bitcoin in terms of price can be understood by following example, at 12:44 pm today on 29 oct 2020 , price of Bitcoin was 981489.33 Indian rupees and at 5:44 pm, it was 971398.94 INR. That is about 10000 INR dip in five hours. it can go either ways , from high to low or low to high and that too within short span of time and than there is no body to be held accountable for. This is not the case with flat currency. A $100 dollar bill valued same yesterday as it is today. The volatility is because there is no federal reserve to stablise the purchasing power of Bitcoin as there is no easy way to increase or decrease the supply of Bitcoin which could have served means of mitigating deflation and inflation
.
Use in illegal transactions
Noterity of Bitcoin for illegal transactions is associated with anonymity. There is no denial of fact that Bitcoin has potential of being misused for illegal transections like drug trade, money laundering , arms and ammunition sale etc
Does it mean that illegal activities are occuring only under ambit of cryptos only? The answer is, NO. These activities have been going with flat currency too before release of itcoin. All depends upon users intent
.
Security Issues
Bitcoins being digital asset is vulnerable to theft by phishing, hacking and spamming by miscreants. It is so fragile as an asset that "if password is lost, currency is lost". However back up mechanism for passwords are available these days but they need to have been set beforehand
.
Taxing of Bitcoin
it depicts one more horizon of Bitcoin with dual nature. As there are no taxing mechanism for Bitcoin yet. Those who want to evade tax take advantage of it and use it as investing tool after thorough risk benefit analysis. And as long as governments don't find effective ways to regulate this aspect , legal status of Bitcoin is going to remain suspended till than
.
High Electricity Consumption
High electricity consumption by miners is also an issue flared up by some economists and environmentalists, however I think, had it been such a big problem , it would have affected earning of miners too. Not to let this issue add to existing problems and to minimize the expenditure , alternative source of energy like geothermal, wind, solar, hydroelectric are becoming popular nowadays. Least not the last concern is generation of carbon footprint at places where electricity is extensively carbon driven.
Thank you.
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@steemitblog
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The price of Bitcoin (BTC) will be 13235.20 USD
But for that reason, people see it as an investment asset. In fact, most of the excitement and passion for Bitcoin in India is that it will reach 0.1 Million USD one day(not financial advice). The entire crypto market India is abuzz with such speculation.
In fiat, they are controlling the price, adjusting the supply. In Bitcoin, the protocol is controlling the supply, allowing the price to be decided by the open market.
I totally agree with this, many naive users are not that familiar, moreover, we have been seasoned with centralized things for more than hundreds of years, it needs a certain amount of time to get accustomed to a new thing like Bitcoin, crypto. More awareness, crypto literacy will solve this issue.
Thank you.
You are doing good, keep engaging, keep posting regularly. Just a friendly advice-- Go with one round of proof-reading before hitting the submit button.
#twopercent #india #affable
Volatility is not one way. It can go either ways. Keeping the socioeconomic status of people of india in consideration, i think small fraction of people can teke risk of investment based on speculations. I may be wrong because this is my personal assessment based on interaction with people in this context.
Thank you.
#onepercent #india #affable
No...you are absolutely right. Timing a market is another important skill one must possess to remain in the safe zone. However, whosoever has invested in Bitcoin before May 2017, has always been profitable regardless of the point of entry.
Thank you.
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