The cryptocurrency bitcoin, regarding currency, is entirely dysfunctional. It is considered as a great thing by the libertarians and some market socialists who have now created their version of bitcoin. But the fact is, as a currency, it is completely dysfunctional.
Reasons for Bitcoin Dysfunctionality
Here are a few reasons for this that are given below in the article.
Bitcoin is Easy to Get Lost: You can lose it easily under laughable circumstances. So, the main problem with it is that you can lose a huge amount or chunk of it through a completely ridiculous accident. For example, a person lost bitcoins of worth $600 just because he resettled his cellphone. Another man threw away his hard drive which has $6.5 million worth bitcoins. These are pretty ridiculous circumstances, but it is important to note that the circumstances wouldn’t have happened with traditional currency. Get help from this link Bitmoneynews.com.
Bitcoin Creates Inequality: Bitcoin is creating economic inequality around the globe. Many libertarians proclaim that bitcoin will not act like the normal currency as it is concentrated in the hands of a few. 47% of the individuals hold nearly one-third of all bitcoins. About 927 individuals control about half of the entire currency. There are just 1 million bitcoin holders out there. It has been told by the experts that the currency can crash overnight while keeping the above figures in mind depending on what the majority of them want to do. The libertarians tell that this would not happen in a truly digital market.
The anonymity of Bitcoin: Anonymity is the major term used in bitcoin discussions. There is no way for someone to know how it was founded and who founded it. However, in actual, this is not true. It is very easy to track someone through bitcoin. If you go out and purchase something, the cash you give them has no proof where it came from. But, you can do that with bitcoin because it does the transaction. The bitcoin transactions are recorded. The NSA can get you easily through the details of this transaction.
Ideological Arguments of Bitcoin: The biggest reason why a lot of people support bitcoin is an ideological argument. It is all about that the government cannot trace it, it is free of authority and so on. It is taking the total ideological advantages.
However, the currency is not used that way. The purpose of currency is practical. It has to be useful for people. This is the big mistake that the followers are making. You cannot base currency of your ideas; rather you can base it on its utility.
Bitcoin cannot satisfy a person who thinks logically. The current currency is more useful and more convenient than bitcoin. This utility of commoncurrency makes it superior to bitcoin. The normalcurrencycan inflate, that means, the currencycan meet the needs of the market.