Common Criticisms of Bitcoin

Bitcoin Info > Common Criticisms of Bitcoin

  1. Bitcoin has no intrisic value. (2)  It’s just numbers on a computer, created from nothing.
    • Bitcoin solves the problem of transferring digital property without having a trusted central authority.
    • Bitcoin offers a credible way to have a non-inflationary currency at a time when there is low confidence in government‘s ability to maintain the value of the currencies.
    • The technology behind bitcoin forms the basis of a superior payment network that is cheaper and faster to settle.
    • Bitcoin is more portable.  It is not tied to the legacy banking system or the proprietary systems like Venmo and Paypal that have been built on top of it.  Bitcoin can quickly be transferred to anyone in the world with an internet system.
    • Bitcoin makes micropayments possible using the Lightning network.  This could have a big impact on media struggling with an advertising-based model.
    • Bitcoin pre-empts government sponsored digital currency systems that people fear will be ripe for abuse.
  2. Bitcoin uses too much energy/causes global warming.
  3. Bitcoin is used by money launderers and other criminals.
  4. “Bitcoin Isn’t Scalable”.  It can only do 7 transactions per second.
  5. Bitcoin takes 10 minutes for one transaction.  No one will use it to buy a coffee.
    • Nobody buys coffee with Fed Wire, but people in El Salvador do buy coffee using the Lightning network, which is build on top of Bitcoin.
    • At this point it doesn’t make sense to use Bitcoin for payments in the US because Bitcoin’s price is still too volatile and you also have to calculate and pay capital gains tax on every payment.
  6. Bitcoin is a ponzi scheme.
  7. Bitcoin is a bubble.
  8. Bitcoin is too volatile to be used as a currency.
  9. There are some 3000 cryptocurrencies.  How do I know what to pick?
  10. Governments are going to ban on Bitcoin.
  11. People predicted high inflation in the past and it didn’t materialize.
  12. Paul Krugman: Gold isn’t useful and “Digital Gold” isn’t useful either.
    • 2021 article: Technobabble, Libertarian Derp and Bitcoin:
      • Cryptocurrencies are inspired by Libertarians (which is bad).
      • The Crypto technology is hard to understand, therefore it should be dismissed.
      • As a proponent of social welfare policies, I need governments to be competent and trustworthy.  Therefore, trusting Governments with fiat currencies and inflation shouldn’t be such a problem; and
      • The Global Reserve Currency isn’t such a big deal.

Good arguments to debate about Bitcoin

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