Since the price has started rising again, the usual arguments have come back. This is the 3rd or 4th time the price is taking a surge so lets get over all the flawed arguments once and for all.
Bitcoin has no intrinsic value
Nothing has intrinsic value. Value is a matter of association. Gold has value because of its properties, just like that, bitcoin has value because of its properties.
2) Bitcoin is slow and expensive
Bitcoin is opensource protocol and is always improving. Transaction fees are not very high these days but thats a price you pay for censorship resistant transactions compared to traditional banking like paypal. But don’t worry, bitcoin’s 2nd layer, Lightning Network is getting popular with practically 0 fees and instant transactions. Speaking from experience, Lightning Network actually works. Its not as easy to use but so wasn’t the internet when it was new.
3) Its used by criminals
This is exactly what people used to say about the internet. The internet turn out pretty used because its open. Bitcoin is an open platform to develop on. Sure, people use technology for bad, that doesn’t make the technology bad. Instead of limiting what people can do, we should be focusing on creating better people. Infact, one of the number one usecase of bitcoin is charity and tipping (see pineaple fund and people on this subreddit).
4) Its trying solve a problem that doesn’t exist
Satoshi Nakamoto in his first release of bitcoin talked about the trust that traditional banking breaches. Financial colapses happen everywhere and people loose everything because someone at the banks messed up. Excess inflation, like in Venezuela and Argentina, make people loose everything they have and often commit suicide while people at the top get away. Sure, just like climate change, it doesn’t seem real until it actually affects you.
But bitcoin is so much more. It has ignited so much in multiple sciences and economics. Bitcoin is no more what it was in 2009 and with the advances in layer 2 solutions like Lightning Network, which is like the HTTP of money, its like saying “the technology to stream stupid cat videos on demand will never be usefull”.
With a download of an app and 2 button clicks, you become a part of a global economy. Bitcoin is worlds first global currency.
Its about choice. If you want to use your national currency, go ahead.
5) Bitcoin wastes a lot of energy
Bitcoin uses energy for proof of work to secure its network. The reason bitcoin is so valuable is because its so secure (ill get to speculation). This energy is used to establish mathematical truth. There are other alternatives to Proof of Work like Proof of Stake which uses a lot less energy. Layer 1 of Bitcoin uses Proof of Work as of now.
Also – solar mining?
6) There are other better cryptocurrecies than bitcoin
There is no other network as secure and robust as bitcoin.
7) Bitcoins price is very volatile
As of today, yes. But its been observed that since its beginning bitcoin’s volatility is gradually decreasing. Its often said that each consecutive bull run is less volatile than before (there has been 2-3 bull runs).
8) Wasn’t bitcoin dead?
bitcoin obituaries. Bitcoin will never die. Even if price falls to 0 (which it won’t cause people value freedom), the network will never die. also this obituary song.
9) Bitcoin is a bubble
Bitcoins all time lows has always been orders higher than its prior all time highs.
Local bubbles exists. There are no global bubbles. Its only going up. (no guarentee, don’t kill me if you lose you money. Understand before buying/earning)
10) Bitcoin is open souce code so it can be just copy pasted so it has no value
Bitcoins code can be replicated. Not the network. Its the network thats real.
Bitcoin solved the double spend problem in computer science.
11) Bitcoin is centralised
A lot of big miners are mining pools. Sometime in 2013 (not sure) poeple realised one mining pool was about to cross 50% of hash power which made a lot of people to opt-out of that mining pool and it reduced its hash power a lot. I should also tell you that people often overestimate the dangers of centralisation. A centralised miner can only change the next block. Not the entire blockchain. Though bitcoin has never been successfully attacked with 51% attack.
So no, its not centralised, but not 100% idealy decentralised either. Practically, its decentralised.
12) Bitcoin mining is making all my gaming GPUs expensive and I’m sad >:(
No one uses GPUs for bitcoin mining (as of now), GPUs are for other cryptocurrencies. Though I should tell you computation is going to be very valuable. Mostly because of AI, big data, crypto and gaming. Which means greater demand. That doesn’t mean better cheaper GPUs won’t come.
13) 5000$ per bitcoin is very expensive so how could people do transaction below 5000$
Bitcoin is divisible. The smallest transaction I’ve done is 0.01 satoshi which is 0.0000000001 bitcoin = 0.0000005278$ as of today.
All this not focusing about what bitcoin actually is. If you’re here and are a noob. I hope you learn about bitcoin after this! <3