Is Bitcoin dying? There has been much fuss and buzz on the matter regarding the slow death of Bitcoin. In this article, I will discuss whether Bitcoin is here to stay or if this pioneering crypto-currency is dying for real?
Bitcoin Origins and Functionality
The Bitcoin protocol was released in 2009 by a Japanese software developer, Satoshi Nakamoto. The real identity behind the name was never discussed in detail. Some even think that this is just a pseudonym and a team of developers is, in fact, working behind the first digital currency.
Bitcoin works in a peer-to-peer (P2P) network or payment system which makes up a decentralized architectural framework where there is no single authority manning the system.
Every Bitcoin user directly collaborates with other users so that they are able to send and receive bitcoins in the purpose of exchanging currencies or in the trading of commodities and services with the use of wallet software.
All transactions are verified and recorded on a virtual public ledger which yields multiple copies over the Internet. These transactions are also constantly updated with each newly validated entry coming in.
Is Bitcoin Dying? Challenges Experienced
There are many setbacks and roadblocks that continue to challenge the efficacy and resilience of the Bitcoin currency. While this platform is considered as a medium of exchange, Bitcoin is not defined as equivocal to money, since it is highly volatile and not regarded as a precise unit of value.
People may think that the only downside of using Bitcoin is the fact that it is relatively new and still working in beta. This factor makes it tentatively a “work in progress” but there is more than what it seems. More so, many individuals and businesses are unaware of Bitcoin and how it works.
Is Bitcoin Dying? Controversies Abound
There have been a number of controversies surrounding Bitcoin, such as that it is being widely used for illegal activities. One example is the recent US FBI siege and shutdown of the Silk Road black market which operates online. Around 144,000 bitcoins worth US$28.5 million were recovered.
The US government is actually coined to be Bitcoin-friendly in comparison to other countries like China were Bitcoin exchanges with their local currency are under some restrictions. More so, The European Banking Authority also believes that the Bitcoin system is deficient when it comes to consumer protection such as in incurring chargebacks.
Is Bitcoin Dying: Dangers and Downsides
- Cybercrime – It has been used for shady online transactions and criminal activities over the web which involves stealing money or illegally moving funds from one account to another. This is widespread in money laundering services, currency theft, and the purchase of illegal goods such as guns or prohibited drugs.
- Black Markets – Online gaming or gambling websites make use of Bitcoin. They commonly escape the hassle of background checks with the virtual framework and can operate freely in diverse black markets. Some shopping sites are also hacked with the use of bitcoins.
- Malware – Around 146 types of malware found in Bitcoin currency has been identified and it appears to be undetected by standard antivirus scanners. This is very dangerous especially when you are using bitcoins for payments online because your financial transactions and information can be compromised.
Do you still believe Bitcoin could be dying? Not now. In fact, it boasts to be an emerging technology. The replication of Bitcoin magnifies its versatility and power as a strong currency or medium of exchange in the near future.
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