It’s sounded a totally fictional story when BitCoin first introduced in the year 2008 as an encrypted and decentralized currency on a whitepaper by a man named Satoshi Nakamoto whose identity and country is still unknown. With no ties to any country’s national economy, BitCoin is quite volatile and prices fly and drop straightly by the influence of competitive cryptocurrencies, financial deals, and many national policies which also fluctuate on an individual basis. Unlike fiat currencies, BitCoin doesn’t come under in any monetary policy to employ economic influence. The result, for many years, BitCoin was one of the most popular cryptocurrencies and dominating the market. But, from the last couple of years, BitCoin lost its magic. Many equity investors stopped investing in BitCoins even the reputable investors who once admired cryptocurrencies a lot. Now, they believe Bitcoin and other cryptocurrencies are only a part of Ponzi schemes and frauds.
Lately, the crypto community is not doing very well and become a part of some Ponzi scheme. Even Warren Buffet double down on BitCoin doubt. Not just him but many investors who are known for their expertise in investment industry are looking down to cryptocurrencies. As per the data compiled by Google trends on “BitCoin”, it is clear that BitCoin hasn’t the same popularity as it once had.
No Intrinsic Value – Still a Debate
The main reason for equity investors worries over BitCoin and other cryptocurrencies are the no clear intrinsic value. However, the views over this, varied with individuals and many big names gave opinions based on their knowledge. Well, you can’t argue with that. Because the intrinsic value of BitCoin is tied to the ability to mine it. That means any party who is in possession of BitCoin or control it can change the intrinsic value however they like.
According to some, “No intrinsic value” doesn’t directly relate to its popularity. First, no cryptocurrency has intrinsic value. On top of that one most precious “Diamond” also has no intrinsic value, but still a single ring can fill your big pockets.
Second, “Blockchain” which by the way is a digitized public ledger for all cryptocurrencies transactions which helps in keep tracking of transactions of digital currencies. The Blockchain now built trust where participants and crypto-investors have full transparency over their transactions.
Legal or Illegal? – Still a Question
Since BitCoins are not regulated by any Central Bank and don’t relate to government. Plus, there is no international or national law which applies to the usage of BitCoin. Which is why it was so popular that investors invested in this digital currency and purchased services and goods based on the investment profits. Cryptocurrencies has no physical form so it transacts online and can be conducted cross-border transactions with zero exchange rates.
BitCoin In India?
Many equity investors from India stopped investing in this peer-to-peer(P2P) network because of country’s virtual ban on cryptocurrencies like BitCoin with the Reserve bank of India (RBI). This sudden decision affected a lot of investors who are in it for a long haul. Many traders and investors are panicking and started moving their holdings to private wallets.
Some investors are not happy with this decision and believe it is wrong to ban the cryptocurrency when it is free from decentralization.
No Control over Volatility
In cryptocurrencies, there is no board or organization’s rule & regulations to keep in check on the volatility. For example, BitCoins has no regulation to control the volatility of the price, it can either rise and fall by 100 percent.
There are no rules to control.
A person can gain or lose very quickly.
Most-terrifying thing about BitCoins is, “if you die without sharing your private keys, your BitCoins will go out of circulation.”
Nobody will get squat.
Same goes for someone who lost his/her private keys.
This is like a nightmare not just for equity investors, but anyone who invested in BitCoins. You can’t afford to lose your private keys.
No Cashflow Values
BitCoin is a virtual asset and whose price fluctuates regularly. The result, It is impossible to use it as a currency because like commodity or equity it has no underlying value to see it as an asset.
Final Thoughts: –
In the final analysis, we can say that the BitCoins and other cryptocurrencies have some flaws which triggered some equity investors to not invest in crypto. In truth, we can’t blame the crypto community for few scams and Ponzi schemes.
Nevertheless, the last decision is yours to take. But, don’t stop investing in cryptocurrency based on the words of another person. It is your money and you should have the last decision in losing and winning it.